The following chart shows the 10-year moving average of the natural logarithm of the ratio of revolving credit to disposable personal income.
Click to enlarge.
When using natural logarithms, constant growth is seen as a straight line. We aren't seeing a straight line though. Instead, we're seeing a nearly perfect upside down parabola.
Over the long-term, this particular growth engine is done. Stick a fork in it.
The future's so bright I gotta roll over in symphony. (Pun intended.)
Source Data:
St. Louis Fed: Custom Chart
Click to enlarge.
When using natural logarithms, constant growth is seen as a straight line. We aren't seeing a straight line though. Instead, we're seeing a nearly perfect upside down parabola.
Over the long-term, this particular growth engine is done. Stick a fork in it.
The future's so bright I gotta roll over in symphony. (Pun intended.)
Source Data:
St. Louis Fed: Custom Chart
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