The Great Devaluation

15Black Swan

In Part One of The Great Devaluation, the case was made that economics is broken. Modern economic theory is based on a set of invalid inputs. “Economics,” it turns out, is not a science at all, but more theory based on a set of false assumptions, such as: price is always equal to value; the market is efficient; and adding to the money supply creates inflation. These are three principles of modern economics that have proven false in the last decade as central banks have taken over the manipulation of the economy. Price is no longer determined by an open market, it is now exclusively determined by central bank demand. If the Fed is pumping liquidity into the system the markets rise. If the Fed stops, the market drops. This is not efficient, this is distortion.

Part Two of The Great Devaluation detailed how everything happening today has happened before in an eerily similar and foreboding way. Virtually identical signs indicate we have come full circle. Those that forget history are doomed to repeat. It sure appears we are making the exact same mistakes yet again.

In Part Three we will discover why the coming mindset shift is inevitable. History has shown us that these mistakes are cyclical, unavoidable, and right on schedule. Our natural tendency is to make the same mistakes over and over again. Once we identify our own human limitations and our eyes are open to a better understanding, it will be impossible to return to our shadowed and misconstrued thinking. (The ...