how printing money entrenches wealth and power at the expense of everyone else
"now ask yourself the real question: why is it seemingly impossible for the US to produce a presidential candidate with any remotely plausible chance of victory that even seems to understand this idea much less possesses the ability (or perhaps the willingness) to communicate it?"
We had one, not that long ago, a guy named Ron Paul. The Romney machine used vote-switching machines to eliminate him.
The CATillon effect is so simple, if the general population heard about it they would be storming the Central banks tomorrow.
The overwhelming emphasis these days is on getting mega-rich by outmarketing your competitors. It’s not even about creating value anymore. “Make $1000s a month dancing on Tiktok!” This is a natural response to worthless currency-obtain it creating worthless content.
When I listen to podcast after podcast interview with “successful” people, I always ask myself, “did he or she make the money because they created that much value, or just because they cracked the code?” Because in finance, anyway, I think a lot of people believe they are geniuses at identifying value, when actually they are geniuses at being in the right place at the right time.
I am reading books by Ron Paul. Agreed, he is an old man. But he seems to have more brains than the regular candidates together. He ran once years ago, but of course, got sidelined. Because he is right on so many points (have not yet finished the book so may be I disagree on other subjects) I am going to write him in
Of course, it is by design. We are technically being led by half-wits whose half-wittedness (?) provides excellent cover (Haha! Just look at what these stupid people are doing!) to the evil, intelligent people running the show.
Covid was the excuse to transfer even more wealth to the top, and to condition us to authoritarian government. The shots? My tinfoil hat receives signals telling me that they were designed to weaken immune systems and make people dependant on the medical system (more and more centrally controlled) for their meds and treatment. Weakened people are easier to control. Again, people were tossed off of transplant waiting lists for refusing to inject poison into their bodies. A warning for what awaits the noncompliant.
It's also no coincidence that Davos Democrats have been furiously writing laws to get effective semi-automatic rifles out of the hands of those most awakened to the upcoming horrorshow.
Bitcoin fixes this.
(Also, gato, thank you for such a clear explanation! I’ve been mumbling about the cantillion effect for a while, but now I can just forward to friends your much better explanation.)
The money printing accelerated during the financial crisis. I read many articles warning of consumer goods price inflation that would result. Then when that did not happen, some declared that it was no longer a problem and soon enough the smart set started talking about unbound printing with MMT.
But I gradually realized that there was price inflation and of the asset class that was most loved by the people that benefited most easily from ZIRP and QE: stocks. From that point the stock market was untethered from real economic conditions and largely continues in that way especially among certain favored tech stocks. However, there is psychologically only so much money that can pour into stocks before it becomes an absurd bubble and the market bumped up against those levels again and again.
The big money crew needed new and perhaps more physical investments and so we got a real estate bubble. Ominously, those thinking a couple of steps further ahead like Bill Gates and perhaps the CCP bought farmland, an even more basic resource.
The pandemic era allowed a final massive burst of money creation just as the system seemed to be in a sort of crisis. But now what? No matter how profligately they print, the richest 1% simply can't substitute their preferences for that of an entire global society. All they can do is overwrite the desires of the many with their own and that will eventually rely on brute force. I think we may see chicanery like CBDC first, but the late stage will be physical violence against the masses of people probably assisted by AI and automation.
Did you read that Israel is using an advanced AI program to pick targets in Gaza? Almost like a trial run of a system that could mesh social media, cell phone data, biometric, government database, etc all to pick people's homes to blow up?
Considering that literally every tool and institution of the "war on terror" was redeployed back against civilian populations, where do you think that AI will be used after its trial phase over there?
Unfortunately, it will take an Argentine peso level disaster in the US dollar to wake up enough people for a serious presidential candidate to emerge. By that time the American empire will have collapsed and the rest of the developed world along with it. We’re in a debt spiral, and disaster is a certainty. It will take time, but it’s on the horizon. Humanity will survive but there’s a lot of pain ahead in the near term.
Yeah it's actually so simple it's elegant.
Must be nice to de facto control the discount to NPV for your investment AND everyone else's. And be able to asses your risk by simply offing all the risk to everyone else from the very beginning, knowing that they cover your cost of capital AND are your best leading indicator for when you should pour more of their "investment" into your next "investment"...and pull the prior one out.
Just by knowing when it's time to push print and knowing that everyone else is clueless that the money IS the investment. Nothing like knowing your "past" performance guarantees future results.
Please consult your financial advisor....if you also need to know jack-shit...:)
👍🏽👍🏿👍 Awesome, the article, that is.
Living in Missouri, I’m sandwiched between banker cartels from the east & west who need to be excised like a malignant disease; removed from my state like a bad roach infestation—with flame 🔥 throwers. We’re suffocating, and the sooner we take off our Red & Blue gang colors, stop attacking each-other and end the Federal Reserve & Central Bankers, IMF, World Banks… the sooner we can start prosecuting and liquidating the assets of Bill Gates, George Soros…Rockefeller, Rothschild…BlackRock & Big Pharma…and everyone associated with war profiteering, especially weapon sales to Ukraine, the Israeli military and the the free automatic machine guns for the civilians to kill Palestinians. Meanwhile, we Americas are being disarmed? WTF is that about?
We are so rich, Americans, as well as the rest of the world, if only we can take back our planet and our individual lives with the right to actually compete fairly and live free. Fair trade/exchange tax is all that’s necessary for the infrastructure that would allow individuals to save themselves. I can’t say it enough: Clean Electricity ⚡️ is totally free, minus the infrastructure, therefore so is water and communications. Everything else humans can create, manufacture & build can be part of a fair trade for legit-profit market, just not an abundance of free electricity & clean water made scarce by mobster utility, currency, war & disease bankers. I really do hate the worthless, scalping, non-producing money & control junkies.
I’ve got dark plans for the shit physicists & engineers trapping the world to the fraud of the “everything must be for profit” system; true electrical enlightenment for the masses; free energy & clean water, and the personal freedom and natural world peace that comes with it. I’m bloody flailing.
Three words (one for emphasis)-
Gold f--ing standard
It's in the US Constitution for crying out loud (Article 1, Section 10), the founders knew it.
Shameless self-promotion (given alignment): We spread this message with a line of 'better bedtime stories' educating families about the broken, crooked, debt-based fiat money system using the principles of liberty, sound money Austrian Economics and natural law (www.inflationeducation.net).
Great work, El Gato!
Even Keynes knew it:
"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth.
Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become "profiteers," who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds... all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
~John Maynard Keynes, The Economic Consequences of the Peace (1919)
"if you think the person in the oval office or the party running congress makes a whit of difference here, i fear you’re fooling yourself."
you know it, i know it. how many more will it take to birth a tipping point of independent voters who make common cause with each other on the local level everywhere and break the parties' stranglehold?
the two leading candidates for 2024 are among the biggest grifters in history. that underscores your point with a vengeance.
Is it just me, or is Milei just like a big fluffy human cat? Maybe he's been subscribing to your Stack?
great article, thanks for the explanations.
inflation caused the war & breakup in the former yugoslavia, go back and look at their economy/inflation in the 1980's, especially late 80's. it got blamed on 'ethnic tensions'.
The free market does not make you eat bugs nor does it make anyone do anything. With a free market, you always have choices. It is a closed and controlled market (like microsoft windows automatically being on most computers) that limits your choices to near zero or none.