The other day, I mentioned that the West is addicted to economic disequilibrium. By this, I meant that the West is addicted to diverging tendencies between wealth itself and the flow lines of ‘claims on wealth’ (to quote Carroll Quigley). However, as is evident by the deteriorating US real estate market, it is not always possible to ‘engineer’ such a scenario. In the case of the US real estate market, the cat is well and truly out of the bag, and not even the most extravagant of ‘money printing’ exercises seems to be able to get it on the “right” track. The behavior of this market represents an example of convergence between wealth and the flow lines of ‘claims on wealth’. Here, I get to grips with the nature of this convergence and outline why the attempted interventions will prove futile.

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