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The fundamental societal contract behind delayed gratification (saving, investment and the formation of capital) has been turned on its head.

There is simply no reward for delayed gratification without risk (return on safe investments after inflation is quite negative) -- And the ultimate fate of those who are taking risk has not played out yet.

The economic distortion is massive.

Things keep going because most people view this as a temporary situation, awaiting eventual return to normal. But normal will never come as we (and central bankers) have painted ourselves in the corner.

Once enough people internalize the fact that this is the new normal, saving will start dropping, a vicious cycle will quickly form and this tremendous distortion will suddenly unravel.

In many ways the sooner it unravels the better, before it stores any more destructive energy. But it is already packing several economic megatons of grief.

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