One of the largest and most problematic instances of economic disequilibrium arises from a disconnect between ‘claims on wealth’ and wealth itself (to quote Carroll Quigley). When these two magnitudes diverge, a great proportion of the population can stray from economic prudence. In the West (at least), periods consisting of these divergences have become the norm – moreover, it would seem that anything else is quite unacceptable to the masses. Here, I consider the nature of such divergences and explore the investment implications of their resolutions.

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