Stated much better than I could...
Any compound growth rate in anything that does not have a terminal date (that is, a date at which said growth ceases) is by mathematical definition and trivial mathematical proof a
fraud.
We have central banks, politicians, media outlets, investment firms, individual investment advisers, pension administrators and more who have all run various versions of this
fraud on the public over a period spanning decades. They know it's a
fraud too, because their actions all confirm such in that virtually everything they have done over the last 30 years has had one impact and goal above all others: extending the time during which said fraud can continue to appear to be possible.
Look at the pension managers over the last 30+ years. They have and continue to this day to believe in 8%+ gains on a compounded, permanent basis.
This is impossible to sustain; you cannot have growth in an asset base that exceeds that of GDP, and GDP cannot permanently expand at a rate beyond that of advancement in technology and population.
Or, if you prefer, look at health care expense at the federal level. Last (fiscal) year those expenses grew by about 9%. Over the last 20 years it's been running just over 7% annually, which leads to two doublings in that time frame (Rule of 72.)
This is impossible to sustain
The fact of the matter is that asset price increases over the last 30 years are mostly a function of the cost of leverage -- that is, credit. As it has fallen asset prices have gone up. (We have been ZIRP for years).
Brexit is nothing more or less than the first hint of recognition that the politicians, media, investment houses, pension managers and advisers have built a bridge too far with too few supports -- the end fell off into the sea.
Nite Nite is coming
![Mad :x](./images/smilies/icon_mad.gif)