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.