GOLD AND GREIVANCE

 

Grievance is the Gold Standard of human emotions.  It leads to high Gold Prices.

And Grievance leads to Authoritarian Govenment 

There is nothing more inflationary than Authoritarian government - which is always the largest form of Government.  For Authoritarianism to work you need a massive army, a massive police force, a massive prison system, a massive judiciary, you need massive oversight of your enemies and you need an oligarch class of massively wealthy to support the Authoritarian leader.      

And you need Enemies.  Enemies to persecute within the state -which is inflationary as it disrupts the labor force as fresh labor (immigrants and political enemies) are expelled, and keeps the political class growing which costs ever more money.

And you need Enemies without to focus the rage of the working class, and this disrupts supply chains that make input commodities ever more expensive  and foments tarrif wars that make goods ever more expensive.

Finally Authoritarinism allows for complete control over the levers of the No Longer Free Market.  Controlled rates go to zero, price controls disrupt the market, and inevitable yield curve control which always seems to make sense to the Authoritarians in the short run,  inevitably leads to Hyperinflation and a worthless currency.

But none of this is possible without Grievance.  Grievance is the emotional ingrediant that allows the 90 to 99 percent of poor and downtrodden tp support their own exploitation.  This massive class includes the "middle class" which is subsumed into the poor and downtrodden class by the inflationary structure.

Grievance is critical.  In the Bible they call it "Coveting,"  Thou shalt not covet.  Why?  Because coveting drives you to endless dissatisfaction which ends in Hatred of the enemies who keep you from getting all the stuff you want and deserve.  Dante has these folks in his fourth circle of Hell.

None other than Charlie Munger has identified the rise of Grievance as the single most destructive force in the American Economy.  And he lived through the depression - which he said never engendered the same kind of Grievance he sees now.

It takes a special politician to understand and manipulate Grievance properly.  In fact it takes effort by the political class to cultivate and grow Grievance.

These special Grievance Connoisseurs come along only once in a while, and we know their names.  Hitler was brilliant at it.  Stallin was pretty good.  Good enough, in fact, that th Russians have made a study of grievance control and they have devoted a massive portion of their military budget to Cyber-ops and Psy-ops meant to foment Greivance in the countries of their Enemies.

And the Chinese have followed suit.  And they're pretty good at it too.  

Social Media and Streaming Services are used in the formation of Hate Groups that are dominated by the intelligence services of Russia, China, Iran, and others.  There are currently nearly 1500 Hate Groups being monitored in the US by our own Intelligence Service.  The problem, is that in Russia and China and Iran, they keep a very tight control over Internet and Streaming Access.  In the US there is no control.  So our enemies have free reign to stoke Hatred and Greivance.  

Many of our most popular Internet and Twitter stars - and even Television personalites - here in the US are used by the Intelligence Services of Russia, China and Iran to spread the messages that they want - to stir up Greivance in the US.  They do this through the most sophisticated use of social and streaming media to support feed back loops that encourage the Grievance or Hate Groups and help them develope their messages and their means.  And they have made a study of techniques that make those who become fascinated by these messages to act in a manner of the choosing of these foriegn Intelligence Servives.

Sounds like science fiction, right?  Only it's real.  Our own intelligence service is only too aware of it.  But thus far, they've had very little succes in combating it because of our free speech laws, and because there are some very powerful people protecting the hate groups for their own benefit.

What to do?  I have no idea. The Russians and the Chinese and their American Media Star-stooges have amassed critical power through the manipulation of grievance.

But I do know this.  Greivance ends in Authoritariansim and as such it is the emotional ingrediant that allows Inflation to get out of control.

Right now we're speeding that way.  

If you can't see a solution - at least protect yourself with inflation hedges.

The best being gold.