When you zoom out and look at the bigger picture, this is just the latest instance of ever expanding credit being converted into assets, just like housing, and reflected in everything down to groceries.
The structural problem lies in the very fact that we have, since 1971 and the end of the Bretton Woods system, fiat currencies backed by nothing tangible or physical, allowing for limitless expansion and by extension inevitable devaluation.
That money has to go somewhere to avoid being eaten by the very inflation it created, holding onto a resource that can be infinitely replicated, like currency in our present system, is a guaranteed loss.
The goal of fiat fueled VC bubbles is never to generate immediate, honest profits from selling a product to consumers, the goal is asset inflation and capital preservation.
The system is not broken, it is in fact working exactly as intended.
I wouldn’t blame fiat at all. It’s an issue of governance, classes and growing poverty. Capital has been shrinking labour’s share, year on year. Your inability to afford a nominal price has nothing to do with fiat. The capitalist class have just grown more brazen and they’ve realised no one will say “no”.
If you want to quip about AI being mentioned in the above article do note that labour’s share of GDP had been on the decline before ‘AI’ was a twinkle in your father’s eye. It’s been a set trend, with politician’s endlessly arguing with the working class: you’ll get your share soon™, but not now. It never came and it never will. The political promises are the same, but they increasingly sound ever hollower.
It’s just more capitalists doing what capitalists do.
When you zoom out and look at the bigger picture, this is just the latest instance of ever expanding credit being converted into assets, just like housing, and reflected in everything down to groceries.
The structural problem lies in the very fact that we have, since 1971 and the end of the Bretton Woods system, fiat currencies backed by nothing tangible or physical, allowing for limitless expansion and by extension inevitable devaluation.
That money has to go somewhere to avoid being eaten by the very inflation it created, holding onto a resource that can be infinitely replicated, like currency in our present system, is a guaranteed loss.
The goal of fiat fueled VC bubbles is never to generate immediate, honest profits from selling a product to consumers, the goal is asset inflation and capital preservation.
The system is not broken, it is in fact working exactly as intended.
I wouldn’t blame fiat at all. It’s an issue of governance, classes and growing poverty. Capital has been shrinking labour’s share, year on year. Your inability to afford a nominal price has nothing to do with fiat. The capitalist class have just grown more brazen and they’ve realised no one will say “no”.
https://fortune.com/2026/01/13/us-workers-smallest-labor-share-gdp-on-record/
If you want to quip about AI being mentioned in the above article do note that labour’s share of GDP had been on the decline before ‘AI’ was a twinkle in your father’s eye. It’s been a set trend, with politician’s endlessly arguing with the working class: you’ll get your share soon™, but not now. It never came and it never will. The political promises are the same, but they increasingly sound ever hollower.
It’s just more capitalists doing what capitalists do.