The foregoing is a summary of the developing stranglehold that has progressively tightened over free markets since the 1980s. But it leads us to the point where with many short-term government bonds in Europe sporting negative yields, the government and banking cartel must be approaching an end-point.
As is often the case in life, when the music stops there will be unexpected consequences. Silence becomes everyone’s enemy and survival instincts take over. This is when black-swan events happen. The global banking system has much to worry about. Without the helium of yet lower interest rates, the debt balloon stops inflating and rising. The burden of hidden taxation through monetary debasement that has shifted resources from the non-financial economy into the financial will be increasingly noticed. The level of genuinely productive employment bulled up by government statisticians is closer to depression-era levels than the propaganda admits. The whole financial system, having been based on an ever-inflating dollar and facilitated by falling interest rates, has now become dangerously unstable.