So the government borrowed until they couldn’t afford the repayments, then they collapsed the debt stack and printed until our currencies were on the brink of collapse, and then they stood back and watched as corporations concealed the inflation in their own interests.
So far, so good.
But as our pay kept going up in line only with the price inflation they reported in the CPI (flights are a steal!) – 1% or 2% a year, and real price inflation in the things we really buy grew to 5% a year and then 6% a year and more, we started to feel
the Bern socialist impoverishment.
So we borrowed like mad to keep our standard of living going – they knew we would. Keeping up with the Joneses is thirsty work.
Their friends in the banking industry made good money being handed new money at 1% (LOVE that Cantillon Effect) and lending it to anyone stupid or desperate enough to borrow it at 17.9%. And even when the suckers had maxed out their cards and couldn’t borrow any more or even service their debts, the bankers got bailed out when it all went sour and lots of their desperate
hostages customers defaulted.
As my kids used to say – Sweeeeeet.
Well, the printed money was supposed to displace enough to pour out into the economy and restore the demand to keep it all going – the bankers had money to lend to us, but it turns out quite a few of us had had our fill of being enslaved by bankers and many of us declined to borrow even if we could.
So they concreted over the problem by abandoning the recalcitrant consumer and giving money to idiot businessmen who kept paying their pointless hysterising staff with the free money, but eventually even that came to an end and now they have finally begun Milton’s Helicopter Money at last. Watch as people don’t spend it, to the enormous frustration of the IYI (turns out that when you pay them no interest, people save MORE for their old age, not less – a real-world lesson for the slapheads in the Eccles-Marriner Building)
So here we stand in the ruins of Western capitalism, mostly stupefied by the scope and scale of the crime, but also aghast at our governments for their malevolence and stupidity.
Up next – the failure of demand that stems from a panicked and impoverished herd desperately saving every penny they can, and the hyperinflationary, I beg your pardon, hyperSTAGflationary collapse phase that so many recent forays into Keynesian demand management have endured as our governments oblige their beholden central bankers to make the “money printer go Brrr”.
It’s a scary time to be alive, especially when you realise that like the hapless EPA goon Walter Peck in Ghostbusters, the statists will insist as we all stand in the rubble that the catastrophe was caused by Western capitalism, not their interference with it.
I hope you don’t mind cats and dogs living together.
Because we are about to see some real Old Testament type-stuff.