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Max Remington's avatar

After publishing this essay, I discovered Peter Zeihan had created a video explaining why a recession isn't likely to come for the next five to ten years. Yes, you read that right, the next FIVE TO TEN YEARS. It's only about seven minutes long, so make the time and watch it:

https://www.youtube.com/watch?v=ZQeYdZUA10c

The tl;dr is this: demographics! Yes, Millennials, by being the biggest generation in American history (not the same story throughout the rest of the world), have created the biggest cohort of consumers ever. As long as they can continue spending, the likelihood of a recession *ever* happening is low. The U.S. is also currently undergoing re-industrialization; as long as this process continues apace, there shouldn't only be ample room for growth, but there should continue to be plenty of jobs to go around.

Does this mean recessions are a thing of the past? Not exactly. At some point, the Millennials will start aging (unthinkable, I know). In the early 2030s, the oldest Millennials will start turning 50, so while they'll continue to comprise a large share of the workforce, their spending habits will change. Consumer spending will slow; even if Zoomers are able to spend prolifically, there's fewer of them, so they won't be as potent an economic force as Millennials were. America's median age will be well over 40 by this point as well.

Zeihan makes no specific predictions, but he's basically saying that if a recession is in our future, it's likely to be some time in the '30s due to demographic realities. Of course, none of this rules out the unexpected, but again: you can't make judgments based on things that haven't happened. You can, however, make judgments based on trends.

"Don't follow the headlines; follow the trendlines." I can't stress this enough.

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Brian Villanueva's avatar

An interesting effect of pardons is that they eliminate your 5th Amendment rights. If you refuse to testify, that is contempt of court or obstruction. If you lie, that is perjury. And the crime is committed today (not from 2014-2014) and therefore not covered by the pardon.

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