It encourages the idiots to become even less competent, while making them feel like entitled geniuses with no pronouns, who want nothing more than to mutilate their own genitalia and engage in other forms of… You wanna see somebody that responds to your house, your emergency, whether it’s a medical call or a fire call, that looks like you. It gives that person a little bit more ease, knowing that somebody might understand their situation better. Understand your situation better. Your house is on fire, and we’re trying to get you out. What do you need to understand? Do gay people understand that better than white people? Do you have to be the same color to understand that you’re trying to get the guy out of his house? Is she strong enough to do this, or you couldn’t carry my husband out of a fire? Which my response is, he got himself in the wrong place if I have to carry him out of a fire.

What would you say? You do here. The basic logic behind Austrian business cycle theory is that inflation of the money supply causes misallocation of resources by making business endeavors that are not profitable seem profitable. Once money is printed, that causes false signals, and entrepreneurs follow the profit signals, which are false because the money that is printed does not represent any real wealth. When these misallocated resources are revealed for what they are as malinvestments, or resources that should not have been put somewhere, then as they are reorganized, that causes a bust. And while it is painful, the good news is that much of the bust is not lethal to most people.

A misallocation of resources is generally not deadly. However, as we have seen in the case of the LA fires, sometimes a misallocation of resources can become very deadly and destroy a lot of property. While a housing bubble can send false signals about the value of houses, it doesn’t actually destroy property. But when you misallocate capital, meaning human capital, and you start hiring the wrong people in charge of life-saving services, then people can die and property can actually be destroyed. That is what happened in the case of the LA fires. This is actually a result of inflation, of inflation of the money supply.

And I will explain step by step how that is the case, and why rebuilding Los Angeles under the current inflationary system is just going to lead to more misery, more misallocated resources. And as long as we do not have sound money, it’s going to burn down again. Let’s go into how inflation caused the LA fires, and it will cause more cities to be destroyed physically as long as the inflationary system continues. And as it continues, it gets worse and worse because more and more inflation is required to sustain the banking system until, of course, everything explodes in a hyperinflationary inferno.

So let’s take a look at it step by step, how inflation caused the LA fires. First of all, we should all know that there are a lot more idiots than there are productive people who know how to do things. This has always been the case. Everyone is both a productive person and an idiot. I am an idiot in working with my hands. I don’t really know how to do that, but I am very productive in organizing ideas, which is why I do that instead. So since it has always been the case that there is more idiocy in the world than productivity within the cast of productive people.

However, there are those who are awesome at wielding power. We call this the political class. Step three, the political class enlists the idiot class by promising them a whole bunch of crap they do not have to work for. These are all campaign promises, blah, blah, blah. We know what the deal is. Step four, the idiot class puts the political class in power. They have a lot more voting power than productive people, expecting a whole bunch of crap that they do not have to work for. The political class, next step, then uses inflation. They print money and spend it on whatever they want.

They buy off people. They buy votes with welfare and warfare and whatever it is that they want to do. Protected classes, groups of people that will vote for them in blocks. We all know who these people are. The political class uses inflation to steal a whole bunch of crap from productive people and give it to the idiot class. That means when the political class prints money, they are not creating new resources. They are creating new titles to buy those resources, but the resources do not expand. And so what they are essentially doing is stealing from people who produce those resources and then through taxes, giving that to people who did not produce them.

And that is a process of theft. Meanwhile, the idiot class gets sustained at the expense of the productive class. Next step, inflation, which affords idiots all the leisure they want because they know they’re not going to starve. They’ll always have enough welfare to continue their lives of idiocy. It encourages the idiots to become even less competent while making them feel like entitled geniuses with no pronouns who want nothing more than to mutilate their own genitalia and engage in other forms of perversion. They get bored. They get antsy. They start thinking up these crazy ideas because they are funded by the government.

And then they engage in all kinds of twisted nonsense. And if that infects themselves, then fine. But in this case, it infects other people because of this step, which is the next one. The political class becomes indebted to the idiot class because they voted for them who are then appointed to key positions in public service like firefighters by the political class that require competence, which they do not have and which they actually despise. So people will be hired to be firefighters, to be firefighter chiefs, to be in charge of essential services in basic society, which they cannot handle and nor do they have any intention to.

And therefore, Los Angeles, the idiot capital of the world, burns down. In an inflationary system, the worst, most incompetent people, especially towards the end of the inflationary system, are put in charge of critical infrastructure and services, which then collapse because they are not interested in maintaining it. They are only interested in furthering the crazy ideas they have developed through the inflationary system and all of the funding for all the universities that they’ve gone to that encourage them to further DEI initiatives and erase biological identity and to embrace purpose. It’s not supposed to work this way.

How is it supposed to work? Next slide. How it’s supposed to work. First of all, you should know, everyone is competent at something, even idiots, meaning they can all fit somewhere into the division of labor and that is a blessing. It doesn’t matter how smart or stupid one is, everyone always has some sort of talent, but it does take an honest money system to be able to divide that labor equitably so that everyone can find their place in productive society, whether minimally or maximally, you will get what you put in. Second point. As the most liquid commodity in any economy, which is the definition of money, inflation is the inflation of the seeming supply of that liquid commodity.

But it is still based on that liquid commodity, which is why gold is still money today. And when you use a dollar, you’re using the gold value of that dollar to acquire or to spend. Gold is the best commodity for trade because it is the most liquid commodity and that sustains the most efficient and dynamic division of labor possible. Third point. Productive people, which are known as entrepreneurs as well, via gold or an honest derivative of gold that doesn’t cheat by inflating the amount of gold derivatives over the gold supply or silver, whatever the case may be.

They employ the labor of the idiot class most efficiently, turning them into productive, less idiotic people. They become content because they can contribute to society through an honest sound money system. Next point. Key positions in society are staffed exclusively by competent people, since losses are discovered almost immediately in a sound money system and anyone who causes losses is demoted. You don’t have the situation in a sound money system where people are promoted to being in charge of the firefighting infrastructure because they like to have sex with women or men or whoever it is that they like to have sex with, because whoever people want to have sex with is completely irrelevant and shouldn’t be a criterion at all when it comes to fighting fires.

The chief also checks another box when it comes to inclusivity and diversity at this department. She’s a proud member of the LGBTQ community. What would you say you do here? Now, in a sound money system, mistakes are discovered quickly. Systemic errors are rarely or never become embedded to the point where an entire city burns down. Basically, what we are seeing in L.A. is the Austrian business cycle theory. In the flesh, brought out into a real fire, instead of a boom bust cycle, we have a build burn cycle, where because of the inflation that has been siphoned to the idiot class, incompetent people have staffed very important positions in society.

And so this boom and bust cycle is starting to infect the real world in a very real destructive way. It’s not just about prices of assets anymore. It’s about assets actually surviving peak insanity, which is getting quite difficult to do. It’s about physical assets physically surviving peak inflation. And remember, as inflation proceeds, food gets cheaper, building materials get cheaper, people get dumber because they do not have to work as much for a living. They can just steal from the productive class, and as this progresses, cities burn down. Getting back to a sound money system is going to be difficult, and it’s going to cause a lot of losses to be revealed, losses that already exist today.

The bust part of the boom bust cycle is not people losing money. It’s people who never had money being revealed to be poor, which is the situation they were always in, as they can no longer steal from the productive class once the inflation stops. Last thing I’ll say is that the danger of rebuilding L.A. under the inflationary system that we currently have is that the same incentives apply. Essential services are still staffed by idiots because they have to be bought off by the politicians because the idiots voted for the politicians. And if you’re from a protected class like LGBTQID, then you will more likely be picked to staff an essential position, putting many people in danger and property as well.

And so there is no point in rebuilding L.A. or any city really that has been destroyed by the inflation until the inflationary system dies. Once that happens, you can have competent people staff important positions because every hire means that you are expending real resources that cannot be printed and can’t be stolen. Once the inflationary system is done, nobody will be allowed to inflate anymore for some time because there will be nothing left to steal. And so as painful as this process is and as destructive as it will get as the inflation of our money reaches its climax, it does mean that we are very close to the end of this inflationary system after which there will be a renaissance and firefighters will be employed based on competence.

And that we can look forward to with excitement. This is Rafi of The Endgame Investor. If you want to read about this in a slightly more organized way, check out The Endgame Investor on Substack. And if you want to support this channel and you are afraid of fires, then consider buying a dirty man safe. Link in the description below. Once you bury it in the ground, it will be fireproof because fire doesn’t burn dirt. Whereas if you have a safe in your attic in your house, once your house burns down, your safe will be visible and it will be taken by looters.

Use the code endgame10 at checkout for 10% off. And I’ll see you guys tomorrow. [tr:trw].

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