Debt Supercycle

The challenge came in a moment of weakness born of a position of power.  I was up giving a quick talk on the essence of storytelling to a group of students learning about marketing techniques, particularly focused on blog writing.  It’s a hot topic lately, but my approach is, as always, that there is really nothing new about it at all.  Just as the thought-out schtick was winding down, my friend and very capable professor Sara slipped the story sidewise.

“You say that storytelling can be used for anything.  You write about economics.  How does storytelling work in economics?”

The short answer is that there are many amazing stories to tell, but how can it be boiled down to a simple explanation?  The short version escaped me at that moment, but eventually it came back – it’s essentially the same as storytelling itself.  Things go along wonderfully until we somehow forget the lessons our grandparents learned the hard way and then have to call on another round of “experts” to tell us what should be obvious.  And that brings us to the concept of a “Debt Supercycle” – how Depressions have come and gone since ancient times because we lost the big story about the economy.

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