Waste.. or compost?

Before going off rambling I wanted to preface with a little twitter depression.  I set out not to post "trade journals," just tweeting entry/exits or making articles just about that. I want to delve into the qualitative discussion on why short VIX permeates everything and all its related metaphors.  I had a moment of weakness the other day and tweeted an svxy trade, mainly out of frustration on the uvxy spread/fills, but anyway I did it, I slipped up.  This spun off into a dozen replies about strategy, brokers, portfolio margin, and more, whereas I think I've maybe gotten a like once in response to dozens of conceptual articles and Janet posts.
I know people don't care but its just crazy seeing it in real time with metrics, such as views and responses to an article mentioning $gdxj $tlt vs general Fed discussion.  Anyway the point is industries like advertising work, even though it seems crazy that they just hashtag movies and go hard at the absolute lowest common denominator.  I'll do my best on avoiding that path.  I take pride in posting Janet pics and instantly losing followers.  Just like in video games if you are running into enemies, that means you are going the right way.

Now some rambling, continuing on the paradox of thrift/broad economy and our short VIX position.  In my youth I was consumed with  the concept of waste.  Government spending, smaller business inefficiency, why do we have more military spending than everyone combined, etc.
I was only seeing the one side of the transaction, the spending/debit.  When you back up and look at the whole ecosystem there is an equal and opposite credit/income for all that waste.  Thus my brilliant metaphor is to not look at insane budgets as waste but as compost.  That spending fuels businesses selling goods and services, employing people who then buy other things.  Thats the whole economy!

What do you think of as wasteful? Take one step back and look where that waste/spending is going, and the river's path of how it flows back into the economy.  And what if the money never goes back into the economy? What if it theoretically goes into a vault or is burned?  Then we just have scarcity making everyone else's money worth the tiniest bit more.  This is basically the situation with QE since 2008 just going to stock prices and banks and not causing inflation in the 'real economy' with helicopter money. 

What matters is the velocity of money and the fact that the whole system keeps trudging on.  There is a chance that the whole thing stumbles and disintegrates and that is long VIX, the counterparty.  As long as the money velocity keeps going and everyone wakes up tomorrow to get checks to do the same stuff, that is our VIX futures contraction playing out- future fear is overstated.

"What's the problem?" theory

Here is some more of the macro/life view on short vix and how to apply it to the rest of your life and our world-

I call it "what's the problem" , which I guess can be expanded to "what's the problem" theory.  It is entwined with the short vix assumption that everything is overblown and implied volatility is overstated in all events, but it is a little more nuanced in that it applies to the thousand seemingly ridiculous structures we see daily:
We are in the 'everything bubble' - equities, bonds, crypto, real estate, the Fed has basically admitted they don't understand inflation (or more realistically refuse to admit the effects of QE), and all the bears will lament every nuke threat leads to new S&P all time highs-

 Yes it seems odd or unintuitive, but just step back and ask "whats the problem?"

I used to be mad at "bubbles" or waste, government burning money on anything and everything, but that is just the paradox of thrift.  As long as the money velocity keeps going, all that burning money is just other people's paychecks and that is just the economy.  Its a big organism and as long as it keeps moving, whats the problem? S&Ps are at all time highs, just like they have been for many points in the last century, the fiat money system based on target inflation is designed to increase.  The numbers always go up in the long run, unless they fully crash, at which point USD won't matter in any investment structure you have.

On a more micro econ note- what about the individual people that make up the insane masses, when they trainwreck through their life making insane destructive and stupid decisions?  I used to be mad at how they somehow turn out alright but now that is just like watching nature.  Bad decisions are good for the economy- they create opportunity and counterparties, which create velocity.  What if no one bought a new iphone every year, what if everyone was responsible? How would we have a consumption based economy if anyone could budget?  How would you have entire services like Geek Squad if everyone could plug in a cable?

What is the stupidest thing you've seen this week/month/year?  Now step back and really think "whats the problem?"  Who is the counterparty, where is this adding velocity to the money supply? Oh, now I get it!  

A case study from the other day- I was at an intersection with one of those huge digital "500,000 smoking deaths this year" billboards with the numbers incrementing.  Whats the problem?
We have:
- the smokers, they are buying some service they want
- the tobacco company making money, creating jobs (the #1 buzzword America loves)
-the billboard company with a client
-the tobacco/cancer/statistics research company putting their work out there,
 and thousands of idiots like me to comment on the whole mess.
 So really what is the problem?  Yes people will die but they would die some other way anyway, and if you try to save people one way you just end up killing someone else.  I'll have a whole different article later on the purpose of death for all the time values to money.  Whoever you think is the "bad guy" probably thinks the same right back at you.
The point is that things like this are what make up the economy and the machine of it to keep going.  These are what the jobs numbers come from, (which we love so much), its not people fulfilling some ultimate destiny, its just people getting checks to do stuff all day that may or may not even have value.  Some jobs negate each other like opposing lobbyists.  BUT, as long as that keeps the money velocity going, what's the problem?

The current global economy is the result of thousands of years of tiny economic experiments, and we are left with this monster.  Its full of insane people and decisions, but those things mean its still moving, and if there is any stupidity left then there is opportunity.  I think I'm mostly acclimated to the insanity, which is part of the short VIX thesis- people acclimate and that implied volatility is overstated.

Oh well, another rambling, 5 more followers lost.  I hope this sparks something in someone out there.  We are on countdown to see if I lose my Janet so I'll have to be strong as ever to really take my own medicine, and if she leaves... *slow tears from my eyes*... whats the problem....?