The Next Financial Collapse Is the Cure, Not a Crisis

But if technology delivers impressive results, why have we failed to embrace its model elsewhere? Why does the price of everything else, from food to housing, rise each year? Sadly, we’ve fallen for propaganda that states we need inflation to achieve economic growth and prosperity. Using clever perception management, western world governments have been able to repeat this myth so often that it’s become part of our subconscious. We now believe inflation is healthy and deflation is simply a miracle byproduct of technology.

In both cases, however, the opposite is true. We know this because everytime central banks and governments turn off the liquidity taps, assets such as stocks, real estate, and corporate bonds, tumble sharply. And in the small period of time between the elites realizing their “mistake” and them turning the money printer back on, we witness the real economic forces at play, the real market screaming out for a return to sanity.

Why? Well, if you think about it, wanting inflation is insane. As a society, why would we want house prices, food prices, and consumer goods prices to rise, not fall? Why would we want to lower our standard of living? Yet, this is the system we breathe, support, and accept as normal, the system that, over the last few decades, has benefited only a few while leaving the rest out in the cold. With asset prices reaching new all-time highs each year, is it any surprise that even before COVID-19.

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