The most accommodative monetary policy in history has produced low growth, low inflation, and low productivity. The regulatory state designed to prevent crisis has made the ground beneath us shakier. The unprecedented access to political information has fractured us further. Something about the solutions themselves is creating the problems they were meant to solve.
• The invasive species are already inside. What was supposed to cure the system (accommodative monetary policy, regulatory protection, information abundance) functions more like lianas strangling trees from within. The strongest institutions are girdled and at risk when the next storm hits.
• The contradiction isn't accidental or temporary. It's structural. More policy isn't the answer because the policy itself is the problem. You can't spray more herbicide on ground already poisoned by it.
• Top-down solutions have collapsed under their own weight. There's no candidate, no Fed appointment, no policy lever that fixes this. The elite institutions are so lost in their own logic they've become unrecognizable as problem-solvers.
• The alternative will never be announced. It lives in school districts and local elections, in the unglamorous work of teaching people to cut down the vines themselves. It's bird by bird, for decades.
• The real question is whether we'll accept that the work is slow. A bonsai takes decades. A free community takes decades. But there's no shortcut that doesn't make things worse.
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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.
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