The Gang

Looking only at a single event in time without knowing what led to the event, doesn’t necessarily give one an accurate  picture of  the event.  For example, witnessing a  single car in the ditch does not tell you how the car got there.  Were the roads icy?  Was the driver forced off the road by another vehicle, or an animal?  Was the driver intoxicated?

We are in the ditch, economically speaking.  We need to know how we got here.  Using the analogy above, the driver of this wreck experienced all of the above.   Let me explain, using terminology usually reserved for criminal gangs…because the description fits.

In the 1990’s, The Gang had finally come to power in enough western nations (or had purchased enough influence) to begin the fleecing of those who lived on their turf.  Laws were changed to suit this purpose.  Some laws they needed were easy to enact on a dumbed down society.  Other laws, especially those pertaining to basic personal freedoms, needed a push (see this).

Around the end of the 1990’s The Gang enabled their own continuance through the oldest form of deceit…bribery…by providing cheap loans to a gullible populace.  The Gang lowered interest rates, providing access to cheap money and giving the illusion of a roaring economy while in reality, the sheep were just getting prepared for the first of many shearings.

Why was it an illusion?  The same reason it is an illusion right this very moment.  When cheap money is made available, where one can borrow a sum of money at extraordinary low rates, human nature takes hold.  Greed specifically.  Because if I can borrow money at 1% or 2%, and can invest it somewhere and make a return of 10%, 15%, or more…why wouldn’t I?  And people did.  And they though the economy was roaring, and The Gang stayed in power (and if you think The Gang is Republican, or Democrat, or Labour, or Conservative, I’ve got a bridge you may be interested in purchasing)

In this manner, economic bubbles are born, because investors need SOMETHING to invest in, right?

So…we had a tech bubble blown at the turn of this century.  We witnessed the bust, but The Gang stayed in control…we then had a housing bubble blown, and we’ve witnessed that bust, but The Gang is still in control…

But here’s where the rubber of Keynesian theory (where it is believed that nations can spend their way out of woe) meets the road of reality.  Because as you may have noticed, the bubbles are coming at us more quickly…kind of fast and furious…where now we’ve had a 9 month stock market bubble being blown, while almost simultaneously a bond market bubble has been blown (bond markets are a primary source of funding for both business corporations and national governments…ie ‘government bonds’).

These two bubbles bursting in tandem is looking increasingly likely.

And through the chaos, The Gang will make sure you look to THEM for protection…for food, for shelter, for security.

Don’t fall for it.

The Gang will never be on your side.