20 hours ago
- Since 2008, policymakers have consistently chosen to prevent price decreases, decoupling money from real value.
- Institutions and markets are shifting capital from productive activities to unproductive assets like memestocks and bubbles.
- The scale of economic distortions is growing, with companies like Theranos, FTX, and AI labs valued at orders of magnitude below the US government's $10T, risking a 'too big to fail' crisis.
- To evaluate profit, one must distinguish between growth-created value and value taken from others, as seen in Cruise Automation's $10B loss without results.
- Since 1980, the US economy grew 3.3 times while the stock market grew 220 times, a discrepancy explained by the policy that prices cannot fall, which sustains trust in the economy.
- The refusal to allow prices to decline is driven by fears of economic collapse and political consequences, reinforcing a culture of perpetual growth.