A friend sent me this message.
The French news reports civil unrest is going from bad to worse with Les Gilet Jaune picketing the airports, storming the houses of parliament and threatening the ministers. Les Gilet Jaune are wrecking the joint. One had to wonder if France isn’t the canary in the coal mine as there appears to be deep undercurrent of discontent rising in western Europe, and the conditions which are fuelling it appear set to accelerate. Most of the money created by central bank stimulus over the past decade was funnelled to the wealthiest strata of society, who mostly reinvested it rather than spend it and thus stimulate the economy. As a result inequality levels increased globally. In 1980 in the USA the top 1 percent held close to 10 percent of the wealth, by the year 2016 this share had doubled to 20 percent. Worldwide 1 percent of the world's population now owns more than half of the world's wealth, according to a Credit Suisse report. Now as central banks begin reversing stimulus (quantitative tightening), money is being sucked out of the economy faster than it was injected and living standards are falling.
Modern history has taught us that when living conditions deteriorate and a population is frightened, people tend to gravitate towards strong leadership and groups which offer a sense of collective identity and order. National, religious, and racial heritage provide easy targets.
A 2015 study which compiled data on nearly 100 financial crises since 1870 observed that far-right parties are the primary beneficiaries of financial crashes. Further research demonstrated that wealth inequality exacerbates this trend.
Hang on for the ride Les Gilet Jeane could be just the beginning.
https://twitter.com/Ruptly/status/1081555779059105793