For smart money, every crisis is an opportunity. Major investors ride the waves of crises; at the lows, they buy new assets; at the peak of the approaching tsunami, they offload shares before the crisis really strikes. They know exactly when it’s coming. Perhaps they are even the ones who trigger the crises – the smart money. The architects of history?
January 1920 – the US government decided to introduce a ban on the production, sale and transport of alcohol. In response to the government’s measures, brewery owners, who already had the infrastructure to chill their products, started producing ice cream (very ‘smart’), and bar owners began selling it on a massive scale to avoid having to close their businesses. People were no longer allowed to meet in pubs, yet they still needed a shared social ritual that would serve as an excuse to get together, so a visit to a pub was replaced by a visit to an ice-cream parlour.
The flow of money, which had previously been directed towards producers of ingredients used in alcohol production, such as hops, was redirected towards dairy farmers. This enabled farmers to base their income on milk production, which was highly profitable at the time. However, the transport of dairy products took place mainly at a local level, as the global transport of chilled foodstuffs still posed a technological challenge.
Help came from the Anheuser-Busch Vehicle Department, which began selling refrigeration units for lorries fitted with the ABC (Automatic Brine Circulation) system to ensure the safe transport of chilled products. This system was innovative as it could transport dairy products over previously inaccessible distances without the need for electricity.
The heyday for the largest US ice cream companies of the pre-war era came with the Second World War. Ice cream scoops were the tool used by the US command to maintain high morale amongst its troops, and ice cream was regarded as a safe substitute for alcohol, as the youngest generation of soldiers had grown up surrounded by ice cream parlours. At one point during the war, the US Navy Command even decided to spend a million dollars (by comparison, a Sherman tank cost around 45,000 dollars) simply to convert a cargo barge into a floating ice cream factory. It was intended solely for the production of ice in the Pacific theatre of war and for delivery to aircraft carriers and soldiers on the islands. It was so huge that it could produce 38 litres of ice every 7 minutes.
The end of the dairy era seemed to come with the end of the war. The oversupply of dairy products led to the bankruptcy of many companies, a situation the US government sought to prevent through intervention and subsidies for the industry. The Agricultural Act of 1949 cost American taxpayers billions for many years after the end of the war. Every successive government in the 1950s, 1960s and 1970s did the same: it bought up dairy products on a massive scale and stored them in huge underground warehouses. It was not until Ronald Reagan, who was known for cutting spending, that this practice was brought to an end. Initially, he wanted to have 254,000 tonnes of cheese dumped into the ocean; in the end, he handed the stocks over to the poorest members of society. To this day, the term ‘government cheese’ is associated in the American consciousness with social welfare cheese that is considered better than that bought in shops. And even today, through its funding of Dairy Management Inc., the US government continues to influence consumer behaviour not only in America – for example, by having this non-profit organisation encourage restaurant chains such as McDonald’s to include as many dairy products as possible in their meals (coffee with milk, cheeseburgers).
What sits at the top of our hierarchy of values determines our behaviour.
Ever since Volkswagen marketed its success thanks to Goebbels, many Germans – and, absurdly enough, Poles and Bulgarians too – still believe that Volkswagen and BMW are the best cars in the world. Well, it turns out that it is Japanese cars that have topped the ADAC’s list for decades. Later came the Koreans, and now Chinese cars such as BYD are well on their way to conquering the European market. Hey, you old mythomaniacs in Poland, in Germany, in the Balkans, in your Porsche – a company that’s going bust: cars with slanted eyes are the best! At some point, you’ve got to face reality.
And look: just as the car manufacturers began to face their first serious difficulties, war broke out in Ukraine. They weren’t as flexible as the beer producers in the US in 1920. They couldn’t switch to producing tanks that quickly. Unless, that is, they’d had a dictator like the one in 1934 who’d ordered them to do so. But those in power in the West were ‘smart’ too: ‘Yes, okay, the industry might be on the decline, but we’ve got Rheinmetall and other arms manufacturers, so we’ll redirect our funding there.’ NATO’s eastern flank has been strengthened, billions are being poured into rearmament, and even the Greens in Germany are in favour of compulsory military service. So the European economy somehow carries on, and even if GDP is rising only slowly, there is no collapse that would threaten the ruling class.
Yes, the West is facing problems in supporting Ukraine in the conflict, but look: there are clever people here too, just like those at Anheuser-Busch back in the day with their cooling systems for transporting ice: the Ukrainians are building the world’s most effective combat drones themselves, and at a bargain price at that – you fools at Rheinmetall!
But every war ends eventually, and we’ll be left with the old cheese and hundreds of thousands of unnecessary soldiers, whilst our children and grandchildren will have to pay off the debts from this war farce for many decades to come with their taxes and meagre pensions.










