I’ve been starting my interviews and guest blogs for the upcoming launch of Silver Justice, my newest novel that will release on July 23. As part of that, I’ve been asked time and time again about the underlying framework for the novel, namely the cause of the 2008 financial crisis. The book is set in New York, and follows Silver Cassidy, an ass-kicking FBI Agent who’s running a serial killer task force that’s hunting a brutal murderer of financial industry players. A big part of the plot involves the slow unveiling of my supposedly fictional account of why the 2008 crisis happened, resulting in the worst recession in our lifetimes. I already know this is going to be a book that polarizes readers, who will either love it or hate it. It’s a shocking ride, and the conclusions it draws are disturbing at a very basic level. Many don’t like living in a world where things are deeply disturbing, so they’ll hate it, rather than becoming outraged or curious. I get that. It’s worth the risk.
BREAKING NEWS: New in-depth interview with yours truly on craft, self-publishing and the price of coffee is worth a look.
NEWS: I was fortunate enough to be named one of the top 100 indie authors for the 3rd month in a row. #50.
As part of writing it, I was forced to become somewhat of an expert on everything from Keynesian economics, to fiat currencies, to the creation of the Federal Reserve, to how and why the IRS was created and by whom, to why the gold standard mattered, to the reasons the dollar has lost 90+% of its buying power since 1971, to fractional reserve banking, to market manipulation and how arcane instruments like credit default swaps and other derivatives work. The tail wagged the dog in this case. By the time I was done, I became convinced of two things: 99.999% of all people have no idea why the middle class is being wiped out and the world is in the pooper and getting worse as we speak; and that that’s not accidental. The ignorance is by design. It’s encouraged, and there’s a big machine devoted to keeping reality from slipping into the equation.
Now, I can appreciate how there are many more important things to do than know about why the biggest financial calamity of our lifetimes took place. I mean, there are reality TV shows to follow, and claims that America’s got talent, and the search for the very best dance crew, whatever the hell that is. I get that most are otherwise occupied, and prefer to debate one political party’s invented rhetoric over the others, or consider which mammoth flat screen TV would look best in the living room. These are heady times. But it occurs to me that ignorance has an incredibly high cost. As an example, the Fed revealed a week or so ago that the average middle class family’s net worth has dropped to where it was in 1982, erasing 30 years of savings since the financial crisis in 2008. That means that if the average was $78K in 82, it is still $78K in 2012.
The ugly truth is that it’s much worse than that. An ounce of gold was $360 in 82. It’s now $1600. So it takes almost five times more dollars to buy the same commodity. That means that a dollar in 82 had five times the buying power it has today. So really, the middle class has lost five times its net worth from 82, when adjusted. The short version is that most of the wealth accumulated by the middle class over the last 40 years has been confiscated – stolen by the relentless erosion of inflation, and by the markets in 2008. (By the way, anyone who thinks measuring the value of the dollar against an ounce of gold is silly would be advised that until 1971, gold was money, for thousands of years. It was only once the US violated its agreement to stay on the gold standard, got caught doing it, and then abruptly announced it wasn’t honoring its agreement anymore, that the new folksy wisdom that ‘gold isn’t money’ started being advanced by the media. Until then, of course it was. FWIW, it still is. It’s just that a collection of uber-rich bankers have spent the last forty years trying to convince everyone that it isn’t, because otherwise people would rebel and demand that the money they are working like slaves for actually possess some actual worth, as opposed to a mere promise of steadily declining worth from the government.)
I also understand that blogs that aren’t railing against free books, or are pro-kitty, or that purport to offer writing tips, don’t get read as much. They aren’t as popular. Because most people’s heads hurt when they are required to think, and to consider any sort of a macro picture of reality that diverges from whatever is advanced as the truth by the media and its owners. People want to believe that the system works, and protects them, and even with its flaws is still the best ever. They have a lot of emotional investment in that idea. So even when a chink appears, and it become obvious that most or all of it is an obvious lie, human nature is to ignore the data, and instead focus on more pleasant things.
I’m here to tell you that there’s a cost to that. In real terms, it’s a cost where most will be wiped out within another 10 years, if they haven’t already been. By the statistics, I’m saying many already have been. But some haven’t. They think it’s all going to somehow get better. That’s because they are ignorant of what is actually taking place, and what the true drivers are. The precarious construct that is their reality has a very, very expensive price tag. And I’m afraid for most, the price will be everything they have – just as in the Great Depression, when millionaires (and there were many in the US by the late 20s) discovered after a few years that they were penniless, and owed everything to the bank. It was considered impossible until it happened. Right now, tell someone with a two million dollar home in Scottsdale or a one million dollar home in New Jersey or a five hundred grand home in San Diego that they could be close to penniless in no time, and they would sneer. Just as people sneered in the 20s.
The research I did for Silver Justice has changed my perception of reality to the point that virtually anything is possible, and it appears that the real powers that be are hell bent on destroying the prosperity of the middle class, just as they did in the Great Depression (about which I could write a book). And my hope is that Silver Justice gets enough traction so that it makes people question the illusory status quo and wonder how much in it could actually be true. While I’m normally aggressively self-promotional in a transparent way, this book is different, and so is this blog. I’ll write another one when it launches, but let me just say that what I’ve learned has me pretty glum about many peoples’ chances moving forward, unless there’s a massive change in the majority’s awareness. The only hope is that they figure this out while there’s still time. Silver Justice is my small effort to move people in the direction of that requisite awareness. We shall see whether it has any effect.
End of rant. For now.
For a synopsis of Silver Justice, as well as a short interview, click here.