'I Support The Current Thing' is an internet meme that emerged earlier this year. It depicts a grey, sad man blindly supporting whatever movement or ideology dominates the news cycle. Modern slacktivists are the target—those who support or oppose causes in ways that require zero effort.
Fact check: False
An early effort to re-branding inflation as 'Putin's Price Hike' didn't work. Unfortunately, people noticed that inflation was rising long before the war began. Another drawback of that is that Western sanctions are far more economically destructive—to the west—than the war itself.
So a new story was needed, and at the G7 summit last week, we saw one floated. Economic problems created by war/sanctions are portrayed as a neccessary sacrifice to support Ukraine.
(How this is helping the Ukrainian is not defined. And it cannot be defined, because the sanctions being no benefits to the Ukrainian people or military … And only make the Russian ruble and economy stronger.)
The first attempt I saw at this storyline was made by Margarethe Vestager—whose official job title is Executive Vice President of the European Commission for A Europe Fit for the Digital Age. Back in April, she advised:
Everyobody is asking 'what can I do?' You can do two things: Control your own and your teenager's showers. And when you turn off the water, you say: 'Take that, Putin!'
Vestager was widely derided, but similar tales are now being told by more senior politcians,
'A price worth paying'
The cost of food and energy is soaring in the UK, with inflation reaching a 40-year high of 9.1 per cent last month. However, Prime Minister Boris Johnson told journalists at the G7 meeting that the economic effects of not helping Ukraine would be even worse than what the UK currently faces:
The point I would make to people is, I think that sometimes the price of freedom is worth paying. And that is worth protecting, that is worth defending, that delivers long term prosperity.
'As long as it takes'
And US President took a similar line:
REPORTER: How long is it fair to expect American drivers ... To pay that premium for this war?
BIDEN: As long as it takes.
'We have to stand firm'
And if saving Ukraine isn't motivating enough, Biden's Director of the National Economic Council, Brian Deese, goes further:
REPORTER: What do you say to those families who say, "Listen, we can’t afford to pay $4.85 a gallon for months, if not years. This is just not sustainable".
DEESE: What we heard from the President today was a clear articulation of the stakes: This is about the future of the liberal world order and we have to stand firm.
The more I look, the less sense it makes. As Biden's administration tells us we must sacrifice to maintain the 'liberal world order', he is also begging Saudi Arabia to pump more oil, in order to plug shortfalls created by Western sanctions.
And it looks like the very unliberal Saudi government will continue to say 'no' to Western requests to prevent a looming energy crisis.
Inflation fixes this.
The Superbubble is not only a financial, it is also a bubble of delusion. And this is demonstrated by politicians and news media who refuse to think through the consequences of driving Western economies off a cliff.
Was the news always this stupid? The weird, hyper-emotional tone of many reports seems new. And here is a list of 33 biases increasingly showing up in mainstream media. I think I remember when journalists asked politicians difficult questions. But critical thinking does not happen when the 'current thing' is invoked. And that is leading up to very serious economic problems that will not become fully apparent until later.
A return to reality is the only solution to this bubble of delusion and it will likely happen via continued inflation.
Inflation is the downward revaluation of abstractions (western currencies) versus reality (real goods and services). This is how fiat currency systems always end. And when huge sovereign-debt Superbubbles blow up, it's fairly safe to bet against whoever is in charge.
Thanks for reading.
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