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Here is a big idea: I have been saying for years, ever since they started the trillions in Covid stimulus spending (i.e. printing invisible money supply), that the human brain cannot comprehend this stuff. It is easy for Democrats in congress to pass these ridiculously large bills because Americans can’t tell the difference between $1 Trillion and $1 Million. The numbers are too big.
Similarly, I could put two containers on the counter. One would be full of plutonium and one would be full of platinum. We would have no way of telling the difference. They would weigh about the same, etc. Our brains are not that sensitive.
Well, we are starting to physically feel what trillions in money printing feels like. At the human level, it feels like hunger, violence, suicide, homelessness, and so forth. Using scientific analytical tools, we can see what these trillions in spending look like. We can see it in charts of the entire stock market going up and down. Just like x-ray spectroscopy tells us what invisible atoms are doing, the stock charts tell us what invisible money is doing. Just like playing around with a container full of plutonium will eventually be felt when it destroys bone marrow and kills, playing around with invisible money will kill too.
Oppenheimer applied abstract concepts of physics to create the A-bomb. I have used these concepts over the last year to make money by viewing the entire global economy from scientific perspectives. Classic economic tools are wrong and do not help one understand the consequences of doubling the Federal Reserve’s balance sheet in two-years. It has to be viewed from a fluid dynamics model (i.e. Money flows like water or air. It applies pressure to the vessel holding it. There has to be a release valve.).
We like to call this central bank money printing “fake money”. It is not. It has very real effects on tangible beings just like atomic weapons.
Update June 15, 2022- The Fed was forced to raise rates by 75 bps and abandon the plan to slowly attack inflation. Jerome Powell was asked what analysis his agency is doing to go back and figure out how they missed thus surprise inflation. He spent several minutes saying that they “spend every minute of the day trying to figure that out”. He blamed it all on “supply constraints” caused by the Ukraine war or supply chain outages caused by COVID. He never even touched upon the fact that he printed 5 trillion in money over two years, per congressional stimulus packages.