Of Two Minds

If the Fed succeeding is a “Black Swan,” bring it on. What if the “Black Swan” of 2023 is the Federal Reserve succeeds?

We have the capacity to learn from previous civilization’s errors–rising inequality, hubris, over-reach, decay of production and trade, parasitic elites, and so on–yet we go right ahead and repeat those same errors.

As painful as this liquidation and repricing of risk is for borrowers and lenders, those without debt, those with cash and those with essential skills that are in demand regardless of boom or bust will all benefit.

If we want social / economic renewal, we have to make it easy to climb the ladder to middle class security for anyone willing to adopt the values and habits of thrift, prudence, negotiation, and hard work.

If the consensus of experts misunderstand money, credit and prosperity, how are we going to advance? Describing all the ways experts got it wrong is a thriving cottage industry.

This dynamic–making problems much worse by forcing more of whatever worked in the previous era into a saturated, increasing unstable new era–receives little attention or understanding.