financial system anomaly

We’ve been through a crazy period of economic history . . . the culmination of a certain historical dynamic:

Between 1850 and 1950 the capitalist system’s recurring crises (depressions and inflations) made the system look bad and there was an alternative on the rise: socialism. So the wealth/power elites attempted to manage the system. They did it through fiscal policy (running governmental deficits), monetary policy (lowering interest rates), and printing money. In order to do so they had to make the dollar a purely fiscal currency (not backed by anything tangible, not backed by gold). The latter step happened in 1971.

After that, beholden to no backing, they were able to print money like crazy. They did so for fifty years. That’s what ushered in the recent anomalous period of economic history.

All the deficit spending and money printing was sure to create inflation, and it did:

The anomalous period is ending now because prices have gone unsustainably high.