I love WSB. It’s always a strange mix of gratifying and horrifying. It’s also just one very obvious effect of ZIRP. The monetarists really have no idea what kind of crops they’ve been sowing. All of the threads they pull on inevitably lead to something coming completely unraveled.

I’ve been saying for years — at least since 2008–2009 that low interest rate policy will have bad effects that no one could predict, and these effects will dwarf the problems central bankers tried to solve in the first place. That’s a near guarantee just because of the leverage on leverage that the financial system is built on. I don’t have the insight to see where any of this ends with any kind of specificity, primarily because the market and human action are such dynamic systems that they defy all prediction. But that’s the conceit central bankers have been operating under: that they CAN predict the future and they can act today to steer it how they want. Utterly absurd.

Large scale human systems are not recursive tinker toys that you can ever fully understand with any kind of certainty.

Human beings need to take a step back and realize that no one has a grasp on reality so firm that they can predict the future. Anyone who makes that claim in a bid for power and influence is a charlatan at best, and at worst: a villain who should be tarred, feathered and rocketed into the sun at their own expense. That includes the entire political class by definition.