3 years ago I offered a Memetic analysis on why the housing cycle we were in will be the worst since the Great Depression. Here we are almost 3 years after the financial crisis, over a Trillion dollars in stimulus money, and most analysts now agree that the housing market hasn’t bottomed out yet. It doesn’t take a genius to see that when lenders flood capital markets with liquidity under the guidance of a Federal Reserve that believes government regulation is evil that systemic greed will be the order of the decade followed by years if not decades of markets suffering the consequences. The aftermath of Japan’s real estate crash and the resulting 2-decade long recession paints a very scary picture on what the immediate future of the US economy might look like. In my upcoming book, I spend quite a bit of time defining the Value-system role of money. Since its earliest use over 8,000 years ago money has always served as a function of productive output. Alan Greenspan and the geniuses on Wall Street sought to alter that roll by making money productive output itself. A classic and grossly misguided case of the tail wagging the dog.
The 2 slides below are from a presentation I recently made at the Wold Future Society in Vancouver, Canada. The first summarizes a chapter from my book in which I trace the storied history of money leading up to the time it was corrupted by the financial innovation on Wall Street and the arrival of Greenspan at the Fed. The second slide shows a timeline on how the Federal Reserve became perverted and started serving a completely different master once Congress placed it in charge of insuring full employment. Time for the geniuses in Congress to create a 21st century central bank that will pull the rug out from under this bloated and diseased entity if the US ever decides to become serious about regaining its global competitive edge.