Its Different this Time

Financial regulation like Basel 1-2-3 and modern central banking as applied by Greenspan , Bernanke , Yellen & Powell created an even greater risk than they sought to mitigate : it deindustrialised the US ( and the entire west ) to the point where it can no longer reliably produce the goods required to defend itself. The idea that a functional, sovereign state can sustain itself by reducing its productive capacity to a services economy, reliant on asset-inflated wealth and debt-fuelled consumption, was the great economic delusion of the 1990s. The inevitable result is a financial economy increasingly disconnected from the material economy that underpins it, where asset prices rise, private debt expands and paper wealth accumulates while the industrial capacity required to manufacture the physical goods on which national prosperity and security depend , steadily erodes toward existential doubt . Eventually, your geopolitical rival is not merely producing more cheaply ; it is manufacturing the machinery, electronics, materials, components and defence systems that you can no longer produce yourself. You become financially wealthy but materially dependent, capable of financing your own defence in theory but incapable of manufacturing it in practice. A nation that cannot manufacture the material foundations of its own security is not truly sovereign; it is dependent on the continued willingness of others to supply the means of its survival. So called central banking independence was used to channel workers wages into a fully financialized bankers economy that literally can’t produce the goods it needs to defend itself or remain independent .