The beauty of our market system is that for all its flaws there is an inner logic: legitimate property rights claims are legally enforced. Ergo one can create a business, trade stocks, secure home ownership, build a farm. Such foundation permits people to act rationally, to plan for the future, to increase their individual level of prosperity and thereby increase the general prosperity of mankind.
Central to this economic beauty is its moral beauty: if someone is moral and intelligent, this system tends to reward them; if they are venal and stupid, the system tends to punish them. For example, if someone holds a controlling interest in a given corporation, but instructs the employees to do stupid and dishonest things, then eventually they will lose control of that corporation. By such cleansing mechanism the market system takes out its garbage.
Yet in the 2007-2008 financial crisis this cleansing mechanism system was catastrophically undermined. In particular, certain major players had been making stupid and venal financial decisions for years, and the market was about to punish them. The narrative fed to the public at the time was that we couldn’t let the system cleanse itself, because that would destroy the economy. It is true that there would have been a deflation of various assets, and this would have caused temporary economic dislocations. But even this has a critical moral function: Those who had most trusted the venal and stupid leadership would have been hurt the most; those who had trusted in rational contrarians would have been rewarded. Thus, the trend of the economy would have been to shift the economic decision-making power from the venal and stupid to the moral and intelligent.
We were told the lie that “businesses would be destroyed.” In truth what happens is that the ownership of the business changes hands and the management is fired. And herein lies the specific motivation for this conspiracy, for it turns out that there is a revolving door between government regulators and large corporations; their interests have unfortunately been permitted to align, creating a glaring and massive conflict of interest. Ergo the bad corporate management that caused these problems was bailed out, at the expense of the middle class and of everyone’s socioeconomic future.
Allowing this corruption to take place was a fatal mistake, and we are now living in the future created by that event, whereby the venal and stupid have been allowed to keep power and control at any costs. Whereas my telling of this tale is new, the tale itself isn’t. Everyone knew or could have known what was going on, plenty of people tried to warn everyone.
So here we are now, in 2021, surrounded by insane levels of incompetence and corruption (that’s putting it nicely). Nothing that is going on at the level of government polices around the world makes any sense, particularly with regard to the pandemic but not solely. Either you are paying attention and understand that, or you are following only the mainstream media only and you don’t. Again, the contrarians are trying to warn everyone, but are being mocked and ignored, and many people are blind and trusting of these narratives being pimped by people with massive conflicts of interest.
We’re lost in an ocean of informational chaos and find it difficult to make sense of anything. What is really going on? Journalist Ernst Wolff gives this answer: The same thing that was going on in 2007-2008, but worse. Given that the cleansing function wasn’t permitted to happen, this was, of course, inevitable.
What follows is my own reckoning of what he said:
In the logic of the market system, we are sailing between the proverbial Scylla and Charybdis with regard to the threat of inflation and deflation. In economic circles, this is the great debate of our time: will we have one catastrophe or the other? Ernst answers: ultimately neither. What they have planned instead is to destroy the logic of the market system, or in the words of the Great Reset, “You’ll own nothing” and “you’ll be happy about it.” In real terms, those who hold the reins of power are clutching at it, and the only way they have found to solve the next economic crisis without losing their positions of power is to utterly destroy the logic of the market system. Whether or not we call this “communism” is beside the point. The point is that those who govern the system will still have the levers of political and economic power.
Truly there would be both inflation and deflation as we careen toward this outcome, in the short term. But neither a drastic deflation nor a drastic inflation that leads to real and lasting “market correction” can be permitted. I presume: If deflation were permitted, then the market would “take out the garbage”, and these people would lose their phony-baloney jobs. If longstanding hyperinflation were permitted, then such chaos would ensue that the population would rebel, and again, these people would lose their phony-baloney jobs. The fact is that these people have ruined things for everyone, but they are not going to let that be fully exposed, rectified, and accounted for.
Just who are these people? According to Ernst, it’s those who control the digital platforms (“Big Tech”) and financial platforms (“Wall Street”), and those politicians, bureaucrats, and judges who serve their interests. Regarding Big Tech, consider how their constant drumbeat about “The Cloud” (starting in the 1990’s) comports with the Great Reset narrative “you’ll own nothing, and you’ll be happy about it.” It exactly aligns: they want you on a subscription model, whereby they can (1) constantly milk you for money with no viable means of exit to alternative platforms; (2) control what digital information you have access to; and (3) manipulate you. Ever since this “Everything in the Cloud” narrative came about, I’ve been skeptical, because it actually makes no engineering sense. Technology can and should facilitate better ways of owning and sharing your own digital content, not worse ways. Have they been planning 2021 since then? Regarding Wall Street, the control that financial interests have exerted over our society has been catastrophic.
Somewhat inexplicably to me, Ernst is semi-optimistic. There will indeed be a future of chaos and destruction, but he thinks that precisely because these people are so venal and stupid, that their plans won’t ultimately work. With our help, the population will notice and wake up and oust these fools from their seats of power. I hope so, but I fear that theirs is a cunning stupidity – they have the knowledge and the tools to manipulate us toward tyranny. Either way, alerting people to the real facts of the world (as opposed to the constant lies of the mainstream bureaucrats, politicians, and media) is what we must aim for; we can only plan for the worst, and hope and act for the best.