In doing some cleanup I ran across a chart that
I had stashed since 1992. It is from a book by Harry Dent. The
title of the chart is The Spending Wave Extended and it goes from 1920 until
1990 with actual data and then has the projections from there until
2040. It was based upon birth trends and looking at it today it
appears to have been very accurate in its projections. It shows a
spending peak between 2000 and 2010 rising from a trough between 1980
and 1990. According to this we are at the peak of the spending wave
and the next trough is projected between 2020 and 2030. That one I
don't think I will have to worry about.
It appears that over the past 8 years the
administration has been able to make this projection come true.
Now let us see if this is truly the top of the spending cycle for a while.