Bubble Economics and the Central Bank Time Bomb

Bubbles: Manufactured Illusions, Real Losses

Financial bubbles don’t emerge from market exuberance—they are engineered through expansionary monetary policy. The central banks, led by the Fed, create conditions where malinvestments—projects that would never survive in a free market—suddenly appear profitable. Why? Because interest rates are artificially crushed, distorting the real cost of capital.

When you lower interest rates without corresponding increases in real savings, you’re not expanding wealth—you’re redirecting it toward fantasy. Think AI startups burning cash with no profit model, or carbon-credit schemes propped up by subsidies. These aren’t investments. They’re illusions—temporary beneficiaries of a manipulated economy.

Time Preference and the Fake Future

In a true market, interest rates reflect how people value the present versus the future. Lower time preference (more saving) means more real investment, which fuels sustainable growth. But when central banks fake this signal—by flooding the system with credit without savings—they force the economy into what looks like progress but is really decay.

Projects multiply, jobs get created, stock markets rally—but none of it is real. The resources have been misallocated, stolen from wealth-producing sectors, and handed to speculative ventures that collapse the moment cheap credit dries up.

The Subsistence Fund Fallacy

Economist Richard von Strigl laid it bare nearly a century ago: unless you have real savings—what he called a “subsistence fund”—you can’t undertake complex, long-term production. Expansionary monetary policy pretends this fund exists when it doesn’t. It funds “roundabout” production methods with nothing in the tank to sustain them.

That's exactly what's happening now with flashy tech and bloated corporate behemoths. They look impressive. They sound inevitable. But they’re hollowed out by easy money, and when that spigot closes, they implode. These aren't engines of growth—they're ticking debt bombs.

AI Mania: The Latest Fed-Fueled Mirage

The article calls out AI as the perfect example of this bubble logic. Not because AI is inherently bad—but because its current scale and funding levels are artificially inflated. If central banks weren’t distorting the credit markets, half of these companies wouldn’t exist. The same goes for green tech, fintech, and even parts of the crypto space.

When savings are scarce and real investment is dying, there’s no room for moonshot ideas. But that’s exactly what central planners want: distraction, not production. Flashy promises of the future keep people from seeing the economic decay of the present.

The Money Supply Whiplash

The article notes a sharp decline in money supply momentum since 2021, following a historic inflationary binge. What does that mean? The fake economy built during the stimulus orgy of 2019–2021 is now starting to unravel. And without a new injection of monetary heroin, the bubbles will start to pop.

This is the boom-bust cycle in action. Not a natural rhythm, but a consequence of central bank manipulation. First they flood, then they strangle—and the people pay the price either way.

Tariffs, Taxes, and Total Theft

Don’t fall for the fake fix of swapping income taxes for tariffs. The problem isn’t how the government steals—it’s how much. With ever-growing outlays, even a 100% tariff couldn’t offset the spending addiction. The result is always the same: more of your savings redirected to non-productive government parasites, fewer resources for the real economy.

And make no mistake—this erosion of savings isn’t accidental. It’s the mechanism by which freedom is replaced with dependence, and prosperity with compliance.

Collapse Is the Cure the System Won’t Allow

The only real fix is brutal and honest: kill the central bank's power, slash government spending, and let the market recalibrate through pain and reality. But the elites won’t allow it. Why? Because they depend on the illusion.

They’ll keep printing, keep spending, and eventually push us into a full-blown Central Bank Digital Currency (CBDC) regime—where every dollar is tracked, programmable, and permissioned. And every bubble, every bust, is just another excuse to centralize more control.

🔻 Your Defense Starts Now: Get the Digital Dollar Reset Guide

If you understand that these bubbles aren’t accidents—they’re tactical weapons—then you know what's coming. A controlled demolition of the economy to justify total monetary surveillance.

You need a plan. You need intelligence. You need this:

👉 Download the Digital Dollar Reset Guide by Bill Brocius

It’s not financial advice. It’s survival strategy.