The rise of the tech giant billionaires, the crime, corruption, wokery, war, inflation, climate witchcraft, and the Big-Pharma reckless experiment — is all made possible by the same thing, and it’s been coming since 1971.
Everyone under 40 has lived their entire lives in the fairy-land-of-plenty borrowed from the future. But all bubbles come to an end.
The rot started with a corrupted currency, and now infects every corner of the world — weakening markets and minds and concentrating power obscenely. When our medium of exchange is undisciplined, everything else is too. There is injustice built right in to Fake IOU’s made from thin air — especially when some can borrow big and early and at low cost, while others have to wait to earn them slowly an hour at a time. In the inflation race, speed is everything. They devalue the incentives that drive people to make things better, faster, and stronger. It punishes the prudent hardworking savers, and feeds speculative greed.
This is what BlackRock’s influence came from, and Gates, Zuckerberg, Dorsey, and the WEF. All of them rode the wave of easy money and easy loans. Through predatory purchases on credit, they were able to buy out competitors or grind them down. What’s left are mega-glomerates of media, pharmaceuticals, and a sea of dark influence so vast that BlackRock commands more money than the GDP of every country bar China and the US, and Bill and Melinda Gates are the second largest “nation” funding the World Health Organization. The New Oligarchs speak with forked tongues, then crush the people who complain.
This is a graph of the US “money base” — the supply of US dollars created by the US Federal Reserve since 1960. Those base dollars are then amplified by the commercial banking system, by a factor of ten or twenty. We could label the left axis “The Global Crazy Index” and it would look just the same. Funny money feeds crazy behaviour.
The galactic bubbles in wokery, inflation, crime, and corruption need money to levitate above reality, so it’s no surprise that the more free money there is, the more crazy the world gets. Governments only get absurdly obese when they get access to new cream-puff-dollars created out of thin air. If western governments were stuck with just taxing the voters they wouldn’t get away with bloated welfare and bloated bureaucrats. The current everything-bubble started in 1982, after the previous inflation was wrung out of the US economy. But the signs of trouble were there in the seventies.
To fight this dark bubble, I could use your help. Thank you.
1971 was the tipping point where all the trends bent
Graphs thanks to WTF Happened In 1971?
Many of these graphs don’t include the last year, so things are worse than they look in the rear view mirror…
The is fall of Rome type stuff.
The USA was intrinsically wealthier until the end of the 1950s. Then its gold was quietly frittered away for $36 an ounce. By the late 1960s, France and others realized the fixed price of gold was absurdly low and called the bluff, asking for delivery of the gold instead of the dollar. At that point the game was up, and it all came to a crunching end in 1971. The US just didn’t have enough gold left, and President Nixon suspended the fixed price deal, and the world was then on a purely paper currency. Starting in 1971, the US dollar — and every other official currency — was no longer backed by anything (except implied promises to tax its citizens for more US dollars). Without the constraint of needing to buy more gold bars, the printers at the US Federal Reserve were free to unleash as many dollars as they could get away with. Free money — printed in paper and then in digits in bank accounts began to blink into existence, and so did inflation.
Dollars are just another commodity, where supply and demand matter
Growth of money supply = inflation:
To put things in proportion — this is The American Century. This is also a graph made in Feb 2020.
There was still inflation on the Gold Standard, but nothing like what followed:
Income inequality goes hand in hand with inflation
The left rail indignantly against income inequality but apparently don’t have any idea what causes it. Inflation is the invisible thief that steals from the poor and gives to the rich. The elite Chosen Ones get fast access to new “free money” while the workers have to earn it at yesterday’s hourly wage rate. The social pain that arises from extreme income inequality is a direct consequence of Reserve Bank policies. If only the Occupy crowd could figure it out.
The criminals followed the money:
Lo and verily the lawyers did too:
There is no free lunch and no free houses either
Printing fiat dollars didn’t print more houses, but it did make housing less affordable — as real productivity ground to a halt, and cushy luxuries and inefficiencies bled through the system. It now takes a much larger slice of household income to buy a house than it did in 1971. Houses are bigger, true, but blocks are smaller, and now it takes two incomes and years longer to pay it off.
Are those kids still at home? When housing and cost of living becomes unaffordable, where else are they going to go?
So much of our life’s track depends on the luck or lack thereof, of where we are born in the boom-and-bust cycle:
Prices back in 1971:
The power of single men like Larry Fink to control national energy policy with the bizarre aim of “changing the weather” could only happen in fantasy booms created by bubbles.
The reckless and corrupt thrive on the easy money wave. And the world’s reserve currency, the US dollar, has been undisciplined and corroding for decades. The free ride on easy borrowed money has fed the corrupt oligarchs, the hedge fund takeovers, the super multinational conglomerates, the tech giants, and the wars. It is as it always has been.
The question is not whether the bubble will collapse, but how much it will take with it in the process.
See all the graphs at WTF happened in 1971.
h/t Scott of the Pacific
August 24, 2022
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