Pecking Order
November 29, 2017·0 comments
We're told that central banks saving the economy helps everyone. We're told that making the rich richer eventually benefits the non-rich. But the numbers tell a different story. While the Federal Reserve tripled stock prices, the bottom 90% of American households saw their share of wealth collapse from 35% to 22%, and the truly wealthy captured nearly all the gains. The system that's supposed to lift all boats has instead widened the moat.
• The wealth effect never materialized. Central banks flooded markets with trillions to force everyone toward riskier assets, but only those who already owned stocks got rich. The economy barely grew while financial asset prices tripled, creating a reality where we're much wealthier on paper but poorer in practice.
• The brutality of hierarchy has simply been repackaged. Instead of Alec Baldwin screaming that you're fired, today's system nudges you with narratives about what you deserve and who you could become. The mechanism changed. The outcome didn't.
• The non-rich are offered debt instead of wages. Student loans, car payments, mortgage financing for depreciating experiences create the feeling of richness while quietly making people poorer and more dependent. It's behavioral maintenance disguised as opportunity.
• Young ambitious people have become the system's most willing participants. The promise of mattering to the world, of being Someone Who Matters, is the hook that sets the line. Once you're in debt chasing that promise, escape becomes nearly impossible.
• The pecking order is now engineered to be permanent. The gap between merely rich and really rich is widening every day. If the truly wealthy gain access to life extension technologies unavailable to others, the hierarchy calcifies into something irreversible.
The Why of Epsilon Theory
- Make more informed decisions as an investor and citizen.
- See through the nudges of Big Politics and Big Media.
- Become a better consumer of news.
- Maintain your autonomy of mind in a swarm of narratives.
- Join a community of more than 100,000 truth-seekers.
Unlock instant access to this and hundreds of other evergreen essays that explore the world of narrative through hard science and human wisdom.
Looking for Deeper Insights?
Unlock exclusive market intelligence, trade ideas, and member-only events tailored for investment professionals and active investors with Perscient Pro.
VISIT PRO
DISCLOSURES
This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.
Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives.
