Why Brexit happened? Why Trump  won? Why anti immigration parties are winning in Europe? 2008 it is clear and simple. Western countries have been shocked by the 2008 crash and many politicians and elites have still not understood the ramification and magnitude of that event.

Country after country, many have started to put in question the entire principle of globalization, free trade, wall street, the banks, the system that the establishment  (in all Western countries) has been pushing for for the 30 years.  Pre-2008, the citizens of Western countries at least believed their politicians that global trade was working because they went to Wall-mart and bought cheap  goods while at the same time they saw their jobs either going to China or paying less. In 2008, the system was near total collapse and people lost their jobs and lost their homes and lost frankly that illusion that the so called Wall Street experts are geniuses. The idea that the people on top are not that smarter, more hard working and are not infallible is the first bubble that popped.

The second bubble is the most important.  Elected official and the system that are supposed to represent the will and interest of the people did everything possible to bail out the banks, large companies, the wealthy, and the connected. They did that by making the people that they supposedly represent pay for it. They cut services, raised taxes, cut interest rates to make your saving worth nothing, imposed more regulation on small businesses while letting big companies continue as usual. In the US, Obamacare in my view a cover  that shifted attention from the 2008 depression and created nothing more than a subsidy for insurance companies. Personally I have always believed in single payer system because it makes sense when looking at the math. statistics and probability. But that is for another blog post. Obamacare took the attention off the banks, the big companies.

People that elected President Obama did not vote for him for health care. They voted for him and put Democrats in charge of both the House of Representatives and the Senate for change, real concrete change and a little bit of justice. What happened? No one of any significance went to jail. None of the big banks were made to pay. They did the opposite. They let the banks make changes to Dodd-Frank, get access to cheap money that created the Wall Street Bubble.  Between TARP and Quantitative Easing. banks got trillions to pad their bottom line and invest in the stock market while squeezing mortgage owners, paying less in saving interest, charging more to consumers, and not lending. Obamacare was the great slight of hand in American politics

So the lesson that many learned was that the politicians and the politicians don’t work for them. They are detached from the people and clearly do not have the same view points and interests.  They work for a growing group of people that are rich and growing richer and hold immense influence and power of the system in all Western countries. These elites are not nationalists, they are ultra nationalist that believe that they are world citizens that have more in common with their counterparts in other countries than their fellow citizens (most have multiple passports anyway and own assets around the world). They believe in the free movement of money and assets while driving down labor costs everywhere. I call it the race to the bottom. Just like Uber and the sharing economy. People think is it great but when later on they realize that it benefits few and is driving labor prices down they will revolt.  Con men always fool people at first but sooner or later people will learn their lesson (most of the time after they got conned)

 

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