The idea that QE wasn't inflationary is a fallacy. It massively inflated financial assets and housing, not consumer goods. This widened wealth inequality and fueled intergenerational tensions, which became a primary driver for the rise of populism—an unintended consequence that central banks eventually acknowledged.

Widespread economic fear from debt and inflation creates a national 'fight or flight' mode. This anxiety is emotionally taxing, so people convert it to anger. Politicians exploit this by providing specific targets for that anger, mobilizing a populist base.

Populist movements gain traction when widespread economic uncertainty drives people to reason emotionally. They seek safety in tribes and rally behind strong leaders who offer a common enemy, masking the root economic cause.

Bear markets are not all the same. Deflationary shocks (like 2008) cause rapid collapses as earnings evaporate. Inflationary periods (like 1966-1982) cause a slow, grinding decline in real returns as valuations compress, even while nominal earnings may grow.

Extreme political figures from both the left and right are symptoms, not the disease. They emerge from a 'demon summoning circle' created by the systemic economic pain of late-stage financialization. The public, feeling disenfranchised by a rigged system, calls forth these radical leaders to challenge it.

Societal hatred and tribalism are lagging indicators of economic distress. By the time political polarization becomes extreme, the underlying system is already in crisis due to factors like excessive debt and money printing. The economy is the root cause to watch.

In an act of financial warfare, post-war Germany sold its vast silver reserves to adopt the gold standard, intentionally harming France’s bimetallic system. This collapsed silver prices, sparking a global scramble for gold. The resulting shortage of the world's primary safe asset caused a severe credit crunch and a two-decade-long deflationary spiral.

The modern economic structure is morally flawed. It pushes people from housing, the only asset they understand, into the stock market, then erodes their wealth via inflation. This act of "stealing" from citizens through monetary policy creates the economic insecurity that fuels populism.

Extreme inequality and inflation, driven by debt and money printing, create widespread frustration. This frustration "summons" populist figures like Trump, who are seen as chaos agents to disrupt a rigged system, rather than being the root cause of the political anger themselves.