FBXL Social

We're in the beginning of what could be the worst stagflationary depression since Weimar Germany.

I'd argue that this actually started in the late 90s with Alan Greenspan's Irrational Exuberance. Excess liquidity then caused the dot com bubble which caused the dot com crash which caused the fed to push for more liquidity, which inflated the housing bubble which crashed and caused the fed to push for more liquidity, which inflated the everything bubble which crashed due to covid and caused the fed to push for more liquidity which inflated the second everything bubble which led to the current moment.

Politically the politicians and central banks want the numbers to go up so they'll do the easy thing to, which is pushing for more liquidity, which ends up causing speculative bubbles fueled by debt, and because people are playing with money they can't afford to lose everything crashes when they start to lose that money. It's a cycle that's been going on for 20 years, but I don't think there's any fuel left in the tank to do it more.

That's true! The history of western economics has been a history of falling from crisis to crisis for decades and decades.