Insular Elites Are Completely Detached From Reality
After years of bemoaning that inflation was “undershooting” targets, central bankers can no longer deny that inflation is here.
$10 bacon! Sunday November 7/ Kroger store Birmingham, Mich.
From what I wrote earlier this year:
“The stated aim of central banks the world over is explicitly and literally to create inflation, at a rate exceeding 2% per year. They will not tighten monetary policy until inflation has been “achieved” (more accurately, “unleashed”) and then the plan is to softly reign it in once inflation averages above 2%. Does anybody remember what Janet Yellen said about reducing the Fed balance sheet and normalizing interest rates when she was Fed chair? She said it would be “like watching paint dry”. Do you remember what happened when Jerome Powell actually tried to tighten?”
– via The Crypto Capitalist Manifesto, free download when you join the Bombthrower list (emphasis added)
Now comes the characteristic gaslighting, with corporate media complicity, that inflation is (pick one):
Bank of Canada governor says inflation ‘transitory but not short-lived’
‼Literally, transitory defined as temporary, transient, brief…‼🤔🤡
— Joe Thebergeن (@JoeTheberge) November 8, 2021
…or even beneficial….
or just another right-wing talking point…
They will use it to push the milk inflation hysteria. No doubt this will hurt the Democrats in the midterms.
— BenjaminPShillaber (@p_shillaber) November 5, 2021
Because for these insular and detached from reality elites, struggling to feed your family, make rent or mortgage payments or keep your small business running are problems for other people. Little people. Deplorable people.
Here’s Biden nominee for Comptroller of the Currency Saule Omarova hoping that oil and gas operations especially the smaller operators, GO BANKRUPT, for combatting climate change.
Biden nominee Saule Omarova saying the quiet part out loud. On the oil, coal and gas industries:
“We want them to go bankrupt if we want to tackle climate change.” pic.twitter.com/luMR2HEMK9
— BidenNoms, A Project of AAF (@bidennoms) November 9, 2021
Meanwhile, as Doomberg observes in this recent interview with George Gammon: The same time that we’re literally killing our own oil and gas industry in the name of climate change we’re simultaneously begging OPEC to boost production. (Also see Doomberg’s “America’s Energy Strategy is Bonkers”, even though it’s not just America. Canada should be an energy superpower but we’re saddled with another coddled, trust-fund Davos-darling for a PM who loathes our own resources and looks down his nose at entire industries.)
In what universe is this rational? It isn’t. This is left-wing, champagne socialist logic run wild. Ordinarily that would be annoying but tolerable. If only the governments, academia, media and the Big Tech apparatus of western welfare states weren’t completely captured by woke, climate alarmist, COVID worshipping Marxists.
Because now, when everything finally does go off the rails because of supply chain breakdowns, labour shortages and skyrocketing energy and commodity costs, guess who or what is going to be blamed?
…Capitalism, and free markets run wild.
This is why people are quitting the whole damn system. It’s why the labour force participation rate isn’t coming back.
It’s why US citizens renouncing their citizenship is in a secular uptrend and hitting all time highs.
It’s why cryptos are at nihilism levels. They’re the last, best opt-out and “f-you” from the rabble to the powers that be.
Which one correctly summarizes why cryptos are at nihilism levels? They both do. But Alex’s sheds more light on why we’re inching closer to torches and pitchforks, all over the world.
Remember what set off the Arab Spring. That seemingly unforeseen wave of cascading revolutions that swept away hitherto impervious regimes in mere months. It was cost-of-food inflation. Nothing sinks rulers, no matter how despotic or autocratic, faster than empty stomachs. Once a pissed-off populace who sees no legitimate recourse for their grievances and who have lost all faith in their institutions, elected officials and media feel like there’s nothing left for the despots to take, look out.
While these events tend to follow the “gradually then suddenly” arc, the obliviousness of the elites to the growing disenchantment of the plebes becomes increasingly palpable. This serves as an accelerant unto itself.
Turn on CNN and I’ll lay you even odds they have a panel on right now hashing out how infantile, racist and ignorant at least half the population is for not drinking whatever Woke-flavoured Kool-Aid they’ve been drilling into everybody else’s head for the last 23 hours.
Here’s Amy Suskind blaming the recent electoral loss of the establishment anointed candidate in Virginia on uneducated white women, who, btw, disgust her.
I join others in being dismayed and disgusted by these women. I don’t know how to reach non-college educated white women. The women I can connect with and influence are college educated white women. I am open to suggestions of ways of doing so ahead of 2022. Bring it!
— Amy Siskind 🏳️🌈 (@Amy_Siskind) November 7, 2021
These people, our betters, are smug to the point of sociopathy. They think nothing of blithely reimagining your lives because they think they know what’s better for you, for everybody else but themselves. All the destruction their policies have wrought, utterly destroyed market, an imploding economy and exploding wealth inequality, that’s on you, not them.
They’re not even trying to hide their derision and condescension anymore.
What To Do About It?
Turn off your TV. Cancel every paid subscription to mainstream corporate media outlet. Read more books. Buy gold, buy silver. Start a business, even on the side. Set up multiple streams of income.
Do not allow yourself to become reliant on government subsidies and if you are now, make it your goal to get out of it. By the time the CBDCs roll out, it’ll be too late.
If you have the means, set up your Plan B: second passport, multiple residences, multiple jurisdictions. If you don’t have the means, make this your goal. We’re in a Fourth Turning and this is going to play out over the next decade.
The insular elites have made it clear: they’re out to bulldoze the middle class. The established order is not your friend or benefactor.
That said, as I’ve been writing about lately, they’re about to find out they little control they actually have.
That’s when things could really come unglued.
* * *
The Crypto Capitalist Letter is my premium service that covers the macro shift to the digital age with a tactical focus on publicly traded crypto companies. Download the overall investment thesis free when you join the Bombthrower mailing list, or try our fully refundable trial offer here.