The global virus to worry about now is not Covid but the worldwide lurch away from economic freedom and toward big government statism. Increasing worldwide poverty, may wind up killing far more people than COVID has.

Europe, South America, and of course the U.S. are all strolling down the road to serfdom. One of the first repercussions of this tragic mistake has been substantial wealth liquidation, as shown in the chart below. Worldwide wealth has declined by about $25 trillion since 2021.

Last week, global stocks lost $3.75 trillion in market cap, bringing their collective worth to $96.7 trillion. That’s 100.6% of global GDP. In other words, stocks are now trading at their current earnings. If we believe the basic principle that stock prices are dictated by future earnings expectations, that means investors are collectively pricing in ZERO economic growth.

How do you like Modern Monetary Theory now?