16 August 2023
Massive stimulus, initially funneled into meme stocks, has inflated a bubble. Post-lockdowns, this has caused “revenge spending,” disregarding costs and disrupting global supply chains. This leads to price gouging and severe inflation, with costs like taxes, rent, and insurance consistently rising. This ongoing stimulus has created self-reinforcing inflation, with permanent windfalls leading to wealth disparities and diminishing returns. The result? An illusion of prosperity while in reality, forced frugality emerges as windfalls diminish. Despite belief in endless money printing, it’s a temporary solution that eventually becomes the problem.