Something is wrong in the United States. People have taken to the streets in protest. For those who have been paying attention, this is no surprise. Long has the financial system that the United States is built upon been rotten. The constant inflation and instruments of debt (among general centralisation of power in the state) of the last 40 years has finally congealed itself into some sort of massive malinvestment ball of slime, suffocating much of the economies of the West. This is what people are protesting, even if they don’t know it.
This post is not about Wall Street per se. Wall Street is not the problem, at least not in the way many think. It’s easy to rail against big business and Wall Street as if it were a singular being. However, the majority of big business have gotten big by providing a good or service that citizens voluntarily spend their money on (contrast this with government “services” where if you don’t pay you go to jail). Have many of these same businesses used their clout to gain benefits from the taxpayer? Undoubtedly. And most big businesses have benefited from the Fed’s ZIRP and bailouts, but can you blame them? The government’s main role is to supposedly set a level playing field for all. When they change the rules and enact disastrous policies, people react. Some people react to inflationary and low-interest rate policies by taking on new debts, perhaps for a shiny new toy or maybe to expand their business. Others react by buying gold and commodities as a hedge. Still others react by padding their balance sheets with essentially free money. Whatever the outcome, it remains just that, an outcome. The Fed runs the printing presses non-stop and some people are able to take advantage of that. As Marc Faber recently said about the protests (h/t Zero Hedge):
They use the system. But they didn’t create the system. The system was created by the lobbyists and by Washington. So they should actually go to Washington and also occupy the Federal Reserve on the way.
Wall Street is the convenient whipping boy used to distract us from the real enemies of the people. Wall Street is the symptom, not the disease. The disease is the state and its incessant goal of centralisation and central planning. Cure the disease and the symptoms go away.