America’s “independent” Federal Reserve loves to act like it’s the grown-up in the room, keeping the economy steady. In reality, it’s more like a stage magician—printing money out of thin air and sprinkling it over Wall Street. The result? Out-of-this-world market valuations that look impressive on paper but have no foundation in reality. Let’s call them what they are: fake wealth. And fake wealth never lasts. David Stockman

The Great Industrial Stall

For decades, America’s factories and energy systems powered prosperity, growing at about 3.3% per year (1954–2007). Since then, growth has collapsed to 0.1% per year—a stunning 97% decline. That means the real economy, the one that makes things we actually need, is stagnating.

Yet, Wall Street is still flying high, not because of production, but because the Fed keeps pumping liquidity into the system.

Who Benefits?

Who benefits? It’s not the American worker. It’s not retirees trying to stretch their savings. It’s the financial elite, who’ve turned Fed “independence” into a license to enrich themselves at everyone else’s expense.

The Storm Before the Reset

Here’s the truth: markets this detached from reality always crack. The question isn’t if—it’s when. And when the bubbles finally pop, the fake valuations will vanish in a hurry. It will be painful, especially for those who believed the fairy tale.

But collapse also clears the field. It strips away the false wealth, and sets the stage for something real to grow again.

The Huge Opportunity Ahead

If history teaches us anything, it’s this: every great bubble is followed by a generational opportunity. When the air rushes out of today’s inflated markets, those who are prepared with cash, discipline, and patience will be able to buy assets at fire-sale prices. Real wealth—the kind built on production, innovation, and value—will rise again. But only for those who didn’t get fooled by the fake.

What Is the “U.S. Industrial Production Index,” Anyway?

David Stockman points to the U.S. industrial production index—the backbone of his argument about America’s economic decay. So what exactly is this index?

What’s Being Measured?

The Industrial Production Index (IPI) is a monthly economic indicator compiled by the Federal Reserve that tracks real output in three key sectors: manufacturing, mining, and electric & gas utilities.
It's expressed relative to a base year—currently 2012 = 100—and reflects percentage changes from that baseline Investopedia.
The data are derived from physical units (like tons of steel or barrels of oil), production inputs, and government and industry reports. These figures are aggregated using a Fisher‑ideal index formula, weighted by each industry's value‑added output.

Why It Matters

The IPI is a vital macro‑indicator. Despite the industrial sector representing less than 20% of GDP, its output is highly sensitive to economic cycles, making it a useful predictor of broader economic conditions Investopedia.
It also feeds into capacity utilization metrics—how fully factories and plants are being used. Low utilization signals slack demand and economic weakness; high utilization can hint at overheating.

What Stockman Highlights

He contrasts sturdy growth from 1954–2007—about 3.3% annual growth in the index—with a collapse to 0.1% per year since 2007, a 97% plunge Doug Casey's International Man+2reuters.com+2.
In plain terms, the real economy that makes things—the industrial sector—is flatlining. That tells us capitalism isn’t fueling itself—it’s being propped up on illusion.