- The twin perils of Confirmation Bias and The Backfire Effect
- Why the coming market crash is going to be a real face-ripper
- The coming resource crisis is going to be much harder for us than any financial crash
- Steps for responding today to tomorrow's threats
If you have not yet read Part 1: Make Your Choice: Change By Pain Or Insight, available free to all readers, please click here to read it first.
I’m Calling BS On This
It’s perfectly understandable that nearly everyone holds a distorted view of wealth, financial assets and how the world works because the last 50 years have been the most unusual and deformed in all of history. So it’s more than half a typical human lifetime of things being completely distorted, and there’s been a concerted marketing effort by Wall Street and its paid shills (the MSM) to perpetuate the myth.
Seen on a longer-term chart the deception is easy enough to spot:
As we’re fond of pointing out, stocks and bonds and other tertiary forms of “wealth” are actually just claims on wealth. Real wealth comes from real things being made and distributed by real people. Or these days I guess I have to add real robots.
In other words there has to be some relationship between the real stuff and the claims on them. The above chart shows that the Fed has goosed asset prices 3 separate times in the past 20 years. This last and most extreme deviation simply can't sustain because…