Gyroscopic Investing

It's because there isn't that much real capital left to consume.

After all, that's the purpose of printing money: to convince people they are richer than they are, so they spend more than they can afford, whether for capital investments on or consumption. Eventually they start getting to the bottom of the barrel.

If I could hazard a guess, I would point to the growth of debt used to pay for goods and services that provide a negligible or negative GDP effect. For example:

• debt products with no basis in productive services such as credit-default swaps
• dullards and idealists borrowing a lot of money to go to college and not learn anything of value
• debt-based bubbles pumping up the purchase price of infrequently-sold assets, such as real estate

To some extent, expanding debt levels can help to mask the structural economic contraction that occurs when demographics are trending in the wrong direction.

I think that is what's been happening.