We’re at the tail-end of the most extreme interventions in central banking history. The Federal Reserve is less a steward of full employment and stable prices than it is a serial bubble blower.
We’ve been hopping from one bubble to the next with nary a chance to catch our breath. From stocks to houses to bonds and back to stocks.
Consider this list:
Remember, to drive a bubble you need two things; (1) a good story and (2) ample credit.
On that front, the other side of credit is money because money is created in our banking system when credit is extended. On that front, “M2” – the broadest definition of money we have (as “M3” was retired many years ago, sadly) exploded out to another new all-time high by somehow, magically piling on another $1.65 trillion in 2025.
Note that 2022 was a terrible, no-good year for both stocks and bonds, and that M2 actually shrank that year. These are related events, of course, and explain why the Fed really doesn’t give a hoot about stable prices and full employment; they care about ensuring that M2 is expanding constantly.
One of the “features” of the Fed constantly stuffing more and more money into the system is that the richest of the rich get even richer.
Since Covid the Fed has managed to make the top 0.1% of households (all 135,000 of them) an additional $11 trillion wealthier, while the bottom 50% of US households (67.5 million of them) only managed to get $2 trillion wealthier.
For a really solid description of this process, James Lavish explains it very well in his newsletter “The Informationist.”
(Source)
The reason the super wealthy get richer is that they get access to the money first.
Adding fuel to this raging bonfire of everything getting more expensive is the US government, which, having dropped DOGE like a hot potato, has managed to spend $602 billion more than it took in during just the first three months of FY 2026:
Where did all those billions actually come from? Inquiring minds would like to know…
Add it all up, and the evidence seems to point to the idea that we’re in the crack-up boom phase of the latest bubble, courtesy of the US Federal Reserve.
If so, get ready, you haven’t seen anything yet. Everything is about to get a lot more expensive before the bubble finally bursts.
Prediction: This will be the most destructive bubble burst in all of human history.
Timestamps
00:00 Introduction and Economic Overview
02:24 The Crack-Up Boom Phenomenon
06:04 Global Market Dynamics and Currency Concerns
10:46 The Role of Precious Metals in Investment
13:05 Consumer Stress and Economic Indicators
28:50 The Rise of Monopolies and Wealth Inequality
32:43 The Impact of COVID-19 on Small Businesses
35:27 The Detachment of the Wealthy from Reality
38:51 Navigating Economic Challenges with Courage
43:07 The Unsustainable Nature of Current Economic Policies
48:13 The Need for Transparency and Accountability in Governance
57:56 The Disparity of Wealth and Its Consequences
01:00:13 Intentional Economic Disparities
01:01:15 Navigating Financial Challenges
01:03:07 The Impending Economic Collapse
01:05:10 Inflationary Pressures and Government Spending
01:07:31 The Role of Precious Metals in Investment
01:10:23 Market Dynamics and Investor Behavior
01:12:46 The Importance of Diversification
01:14:30 Contrarian Investing Strategies
01:17:52 The Future of Energy Investments
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by cmartenson