Garys Economics
Why do asset prices keep going up?
Summarised with Bite · 14 min read
Stock markets hit all-time highs during economic crises. Gold surged 98.5% while living standards collapsed. The explanation isn't just low interest rates—it's governments running massive deficits that funnel cash to the wealthy, who then pump it into assets, creating a distribution crisis disguised as an economic one.
0:00 – 4:09
The Paradox: Markets Soaring While Economies Burn
On April 27th and 28th, the US stock market hit all-time highs. Japan followed the next day. This happened during what should be an economic disaster—a conflict designed to damage the global economy, with living standards collapsing worldwide. Yet Germany's stock market stayed flat for the year. The UK's FTSE 100 climbed 21%. Spain jumped 32%. France rose 11%. Gold went up 98.5% in two years. Silver soared 174%. The conventional wisdom says good economies drive stock markets up, bad economies push them down. But we're witnessing the opposite during one of the most obvious economic crises in years. This isn't new. COVID was an enormous economic crisis—stock markets, housing, and gold all went up. The 2011 sovereign debt crisis pushed asset prices higher. The 2008 credit crisis, despite massive unemployment and economic collapse, eventually drove assets up. Every crisis for the past 18 years has followed this pattern: economy weakens, assets rise. The question is why this keeps happening when it's the opposite of what should occur.
5 more sections in the app
- 4:09 – 9:58The Old Explanation: Interest Rates Were Supposed to Explain Everything
- 9:58 – 13:25The Theory Breaks: What Happened After COVID
- 13:25 – 20:18The Real Driver: Deficits, Distribution, and Where the Money Goes
- 20:18 – 20:48COVID's Double Effect: Assets and Inflation Rising Together
- 20:48 – 28:47What This Means for You and How to Think Differently
