Bubbles, at their core, are fueled by Credit – or “Credit inflation.” Asset inflation and speculative asset price Bubbles are a common upshot. At their core, Bubbles are mechanisms of wealth redistribution and destruction.
Contrary to Milton Friedman and Ben Bernanke, Schumpeter didn’t view the twenties as the “golden age of Capitalism.” Depression was a consequence of egregious boom-time excess rather than the result of the Fed’s post-crash failure to print sufficient money.
Instead of pinning the blame on monetary policy the last 30 years, they will triple down on the same monetary and fiscal policy that got us here… the top down approach (financial elite and corporations) that does not make it to those who truly need help – the American people – to keep the economy flowing.
Now on a weekly basis, we’re witnessing things that couldn’t happen – actually happen.
This should have been the crucial debate almost two decades ago. I would say it is the monumental debate of our times – except for the fact that there’s no debate.
Sound Money is precious – to be coveted and safeguarded. As a stable and liquid store of value, Money is the bedrock of Capitalism, social cohesion and stable democracy.
Kissinger: “Now, we live an epochal period. The historic challenge for leaders is to manage the crisis while building the future. Failure could set the world on fire.”
I have to adjust my message for today’s post-Bubble backdrop: I understand we can’t allow the system to collapse, but Please Don’t Completely Destroy the Soundness of Central Bank Credit and Government Debt. Does anyone realize what’s at stake?
We recommended existing equities on 26 January & told the last holdouts to move from the TSP F fund (bond funds) to the TSP G fund (or the safest funds) by 9 March which happened to be a top for the bond funds.
What did your adviser tell you?
And if there is any confusion about the title. It does not represent people lining up at their banks. It represents wall street banks, hedge funds, and corporations lining up at the Federal Reserve’s Emergency Lending Window looking for handouts to pay their bills and bonuses. We the people should be so lucky.