Chart of the day: debt’s diminishing marginal return

After the United States started its ‘Guns and Butter’ exercise under President Johnson and eventually de-linked from gold in 1971, its economy has become ever more leverage- and debt-propelled. Interestingly, the result has been a diminishing marginal return for each new dollar of debt.

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After the United States started its ‘Guns and Butter’ exercise under President Johnson and eventually de-linked from gold in 1971, its economy has become ever more leverage- and debt-propelled. Interestingly, the result has been a diminishing marginal return for each new dollar of debt.

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Source
It’s Always Darkest Before the Dawn…of a Depression, Safe Haven

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