The ‘No Exit' Meme Goes Mainstream

``What the chart shows is the ratio of capital goods (business equipment) to consumer goods production. When the ratio rises, it means that factors of production are increasingly moving from lower order stages of the capital structure to higher order ones -- which is a phenomenon typically associated with credit-induced booms... By definition, this state of affairs is unsustainable. Eventually the process will reverse, namely once market interest rates stop 'obeying' the central bank's diktat and relative prices in the economy begin to revert to something a bit closer to their previous configuration.''