So the Economy Now Depends on Stocks Which Depend on Front-Running the Fed–And This Is Fine?
Is an economy based on the wealth effect generated by front-running the front-runners really that stable?
So the entire economy depends on the stock market going up as punters front-run the Fed–and this is not only fine, it’s optimal, the best arrangement the world has ever seen. On which ethereal plane is this considered sane, much less optimal?
That the real-world economy–a neofeudal confection featuring a parasitic, predatory Nobility vacuuming up virtually all the gains of the Everything Bubble while the bottom 80% stumble along in debt-serfdom, resigned to serving the top 10% who own 90% of the assets bubbling higher–is teetering on the precipice, clinging to the wealth effect of soaring assets, courtesy of the Federal Reserve, for its lifeline is, well, insane.
Speaking of gaslighting–how many people do you know who call this arrangement by its real name, neofeudalism? No one? How many people are trembling with excitement because every time the Fed cut rates at or near the all-time highs in the stock market, stocks were higher the next year–20 times out of 20? Hundreds? Thousands? A great multitude to be sure.
And this outstanding track record of the Fed stimulating the wealth effect is generating ecstatic euphoria in exactly which cohorts? The bottom 50% who own a single-noise 2.6% of the nation’s financial assets? Households paying half their net income in rent? No, the euphoria is limited to the cohort which stands to boost its already garg
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.