The Spear recently heard an auctioneer use the above line to try and elicit more bids from a gathered crowd. When The Spear first heard it, he thought it a cheap gimmick - a play at people’s irrationality and an appeal to emotion. But the more The Spear thinks about it, the more he comes to believe that for all intents and purposes, the auctioneer was right.
Money, once a gold-backed standard, has been used and abused so much in recent times that one can see how buying into the perverse logic of maximising debt-accumulation for hard asset purchases becomes not so much a matter of choice, but a matter of necessity. As weak individuals held captive by our monetary system, sitting out the game is not an option.
Do you seriously believe that this far down the rabbit hole of Zero rates, Negative rates, Quantitative Easing, Currency Wars, Bailouts, Corporate Bond Purchases, Stock market intervention and the like, that the governments of the world will sit idly by and let their economies go bust without playing out the game Monetary Abuse to the very end?
One need only look to the 2013 budget to see where attempts at even moderate fiscal restraint and the reversal of debt-accumulation get you these days: a one-way ticket on the Siberian express (just ask Tony). The people want MOAR, so MOAR is what they shall get. Something for nothing is the motto of the day.
Japan and pockets of Europe are nearing what The Spear would refer to as the ‘end-game’ of Monetary Abuse. Policies such as Negative Rates aren’t even having the desired consequences, such as a weaker currency. The aura of infallibility surrounding the masters of the monetary presses, the reserve bankers, is waning. It seems that the Neo-Keynesian model of injecting money with crack to keep it hustling is beginning to break.
After just one rate rise in Dec 15 by the Fed, the markets went into meltdown in early 2016 until the doves were force-bred, released and made to do laps around the trading rooms of the world. In an era of forward-guidance, where the words of central bankers and their perceived motives can move markets far more than actions, chairwoman Yellen seems to have thrown in the towel on rate normalisation. The markets want MOAR, so MOAR is what they shall get. Something for nothing is the order of the day.
There’s lies, damned lies and statistics. Bastardised inflation measures ignore the reality of rapid asset price appreciation, and the incentive to design inflation measures to show minimal inflation is significant. How better to reduce the real burden of unsustainable government benefits which are pegged to CPI indexes? Let the silent, unmeasured inflation do its work without losing a single vote.
All of this leaves the man and woman on the street in a pickle of a situation. Unrewarded, nay, even punished for saving. Shrinking government support in real terms (unless perhaps you happen to be working as part of the protected sect of civil servants, with your ring-fenced Future Fund just to make sure that YOUR benefits can be paid in full). Your investment-property owning elected politicians well and truly captured by the system. A global environment of competitive money-printing. How to prevent one’s wealth from being abrogated by the funny-money beast?
You borrow. You borrow to the hilt, because that’s all you can do. You buy your assets and vote for MOAR, because that is the only way you will never have to reap what you sow: just like the rest of them. Because something doesn’t come for nothing, why should you continue paying for the excesses of others?
Of course none of this ends well. You hope the inevitable depression or revolution doesn’t come in your time, but eventually it will. Once the carcass of the funny money can be jolted with electricity and made to dance no more, the inequity becomes too hard to hide. How does one buy votes once money has been murdered? But before that day comes, there’s a lot of Helicopter Money and other zany schemes to look forward to.
Don’t blame money. Don’t blame those who try to make it. Blame those at the top who abused it in the quest for power and left us in this seemingly inescapable situation. It is they who force the hands of individuals to do what they would otherwise not.
Something for nothing? Sounds like a vote-winner to The Spear.