It’s not a simple word to say, and it’s used primarily in fairly informed conversation, but caricature is a massive part of modern life.
Dictionary.com describes it as: 1) a picture, description, etc., ludicrously exaggerating the peculiarities or defects of persons or things, or 2) the art or process of producing such pictures, descriptions, etc.
When he was a teen, this author paid a caricaturist at an amusement park to draw a picture of him. Having some distinctive features and liking to fly, the author was given a cartoonish picture of himself with his features exaggerated, readily recognizable to those who knew him, in an undersized airplane. It was well done and fun, but it was not a portrait. It entertainingly portrayed some things that were true and some that were false in order to be enjoyable and of value, in which pursuit it succeeded wildly.
The concept is germane because it so thoroughly characterizes much of modern discourse—certainly in the political realm and in social media. In fact, it’s almost impossible to overemphasize the prevalence of caricature today. Leading up to the recent US election, Trump was repeatedly characterized as a fascist, threat to democracy, dictator, and so on.
There are mountains of evidence that these words are wildly inaccurate, but they were used because Trump isn’t afraid to implement his policies over the strong protests of his opponents. That’s hardly unique. Biden has done the same thing—perhaps even more extensively—but Trump is the one caricatured. Biden has been his own caricature—a tired, demented, grumpy old man. He has great power and the readiness to use it for his own ends, but not the inclination or wisdom to use it for the good of the country. Such facts can be debated endlessly, but not the fact that he’s a tired, demented, grumpy old man.
A Christian who tries to share their faith or refrain from things forbidden by it will be termed a Bible-thumper or religious fanatic. Someone who points out the virtues of Western Civilization will be termed a white supremacist or colonizer. Someone who points out meaningful differences between races or sexes will be termed racist or sexist. And so on. It’s the way of the world, but it’s on steroids in the 21st century.
The reason for this explosion of something that has been in use for millennia is simple: Totalitarianism is more common in our world than ever before, and propaganda is a major tool of totalitarians—and caricature is a primary tool of propagandists. Most people are not studious, particularly in such complex and esoteric disciplines as economics, political systems, politics, and governance. If they’re on the left, they want other people’s money for themselves or their projects. If they’re on the right, they want to be left alone. (Pardon the caricature to explain caricature. Keep in mind that it is not inherently evil, just prone to be badly used in our day.) Neither side is predominantly inclined to master the fabric and nuance of complex subjects such as those mentioned above.
Enter the propagandist, eager to make complex things simple (as are teachers—to build on the earlier point about the agnostic character of caricature; it can be used for good or evil). He sees a man who is decisive, far-sighted, competent, experienced at making weighty decisions under pressure, able to weather withering storms of public opinion, and heavily concerned about the welfare of the American people.
However, this man is also buffoonish, provocative, snappish, and different looking. That’s a lot to convey, and is not even half of the picture. The important thing is that this orange man is effective in a way no one has been in many decades, and that his agenda opposes the propagandist’s agenda, power, and position. The key thing therefore is to paint him as the bad guy. And for that purpose, caricature is far more useful than documentary.
And so is born Trump the fascist—though most who repeat that mantra don’t know what a fascist is. They think it’s just a brutish guy, not someone who effects “the merger of corporate and government power,” to quote Benito Mussolini, the modern champion of fascism.
And so also is born Trump the dictator because he is a strong leader. Caricature. Part true, mostly false. Totally harmful.
Keep this phenomenon in mind the next time you listen to a news program or video on the internet. Both sides of the political landscape use it, though the left has been far more prone to do so because it has been entirely captured by an authoritarian elite (which has also captured many on the right). Like a gun, a knife, or an opiate painkiller, caricature can be a devilish tool in the wrong hands. But like a gun, a knife, or an opiate painkiller, it can do wonderful things in the right hands.
Key Takeaways:
- Penetrating questions answered in depth
- Leadership by kicking the can
- When things don’t do what you want them to
The McAlvany Weekly Commentary: Our Annual Q&A Part 2 – Happy New Year!
David and Kevin provide a continuation of their their year-end Q&A wrap-up this week, pulling in Philip Wortman and Morgan Lewis to provide further expertise. Questions include whether or not the stock market will retrace this year, if commercial real estate will likewise correct, how all that will affect banks, what overlooked market indicators does David keep an eye on, will there be a Black Swan event in 2025, what explains the divergence between the outlook of investors and that of corporate CEOs, will Trump’s economic success negatively affect the price of gold, and much more.
Credit Bubble Bulletin: 2024 Year in Review
After providing several CBB quotations that link bubbles and inflation, Doug also provides a quick summary of financial crises over the time he has been a macroeconomic analyst. Several of these crises have been world-shaking, but his conclusion is sobering: “from a Bubble analysis perspective, 2024 is unrivaled.” Still—one might say—the world hasn’t ended. Things proceed pretty much apace. So why worry? Again, it helps to have four decades of experience in the field because so much can be summarized so succinctly: “Bubbles don’t do equilibrium. They burst, or their inflation accelerates. Especially late in the cycle, extending ‘terminal phase excess’ ensures a highly destabilizing intensification of inflation dynamics (increasing the likelihood of a crash scenario).” In other words, what we’re doing to forestall a crash makes the inevitable meltdown worse. Current Fed policy is a case in point. Doug cites many statements by Fed officials defending its current easing policy, but his more objective position is clear: “The Powell Fed committed a historic error in easing monetary policy despite loose conditions and conspicuous speculative excess… Neglecting its overarching responsibility to safeguard system stability was a dereliction of duty.”
Hard Asset Insights: 2025—No Room for Error
Morgan in essence reminds us which road is paved with good intentions: “Since the Fed started its latest rate-cutting cycle in mid-September, the results haven’t exactly fallen in line with the typical Fed easing-cycle playbook. Rather than easing, we’ve seen financial conditions begin to meaningfully tighten.” This contention is followed by a number of solid proof elements, then by several proof elements that investors are buying the intentions rather than the reality—in part. Market breadth is remarkably thin, even as equities remain in rarified air. Outside of the Mag-7, equities seem to be struggling to find oxygen. Morgan states that the last time equities fell in a context of tightening financial conditions, markets were saved by Reverse Repo liquidity being pulled into them and by the beginning of the AI mania. He then explains why this scenario is not likely to be repeated this time around.
The GRR crew took the week off from program recording to enjoy the holidays. Happy New Year!
