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Home » Does Democracy Still Control Power? w/ Curtis Yarvin (Transcript)

Does Democracy Still Control Power? w/ Curtis Yarvin (Transcript)

Editor’s Notes: In this deep-dive interview, Peter McCormack sits down with political theorist Curtis Yarvin to explore the hidden power structures and systemic failures of our modern financial and political landscape. Yarvin provides a provocative analysis of the “late Roman Empire vibes” currently felt across society, discussing the disruptive impact of AI on professional employment and the true nature of inflation as a systemic liability. By drawing parallels to the decline of international institutions and the historical lessons of the Soviet Union’s collapse, the conversation offers a critical look at who really controls the levers of society during this era of civilizational shift. Ultimately, Yarvin argues that our current systems are increasingly fragile and may be approaching a fundamental global transition. (Feb 24, 2026)

TRANSCRIPT:

Introduction

PETER MCCORMACK: Curtis, good to see you here in London.

CURTIS YARVIN: Pleasure. It’s always good to be here, even though it’s cold and nasty in this city, but always is. Well, at least the Thames isn’t frozen.

PETER MCCORMACK: Not yet, but it may freeze. The country may freeze over at some point, politically anyway.

Look, we’re in very strange times. As you know, the debt, global debt, sovereign debt, is at all-time highs. It’s a wall of debt that we worry can’t be paid off. And that’s happened at a time where I think we’re right in an AI acceleration phase, which is changing a lot of jobs, a lot of industries. There’s a lot of fear with that. It feels like governments are even more behind the curve than ever and companies are leading the charge. Is this the moment where we realize democracy just does not work well?

The Financial System and Its Illusions

CURTIS YARVIN: There’s a lot of ruin in a nation, and also there’s a lot of ruin in a financial system. Let me say something provocative about finance, which is actually a truism that you will learn in any kind of accounting school, which is that liabilities consist of actually two things. They consist of debt and they consist of equity.

And so when you say basically the debt can’t be paid off — this is of course true in a sense — but really when the stock market goes up, that’s also red ink. Understanding that when the stock market goes up, that’s also red ink, because it’s also a liability. It’s essentially inflation, right? You’re literally increasing the quantity of dollar or pound denominated assets. And it is the quantity of financial assets denominated in pounds or dollars that define spending power.

So actually what you’re seeing when the stock market goes up, you don’t think of that as being like the government printing money and giving it to rich people. But in fact, in ways that are clearer than you can imagine, it is the government printing money and giving it to rich people.

It’s actually the real graph to watch is not the graph of debt. If you go — or at least for America — it’s one of the Z1 statistics. It’s simply personal net worth. And personal net worth is spending power in dollars. When that curve goes upward and to the right, there are two possibilities. There’s one: that number will basically be the same as the inflation number, which is of course the consumer price inflation, as opposed to monetary inflation. But when you’re inflating total personal net worth and that is not driving inflation, it’s because you’re basically giving all the money to the rich people. So it kind of sucks in either perspective.

On the other hand, it’s been sucky for quite some time. And this AI really works — I use it professionally, not in my writing of course. But one of the grim doomer thoughts about the state of our financial and political systems is: if these systems worked well, they wouldn’t constantly need technological advances to bail us out. We should be able to have as nice a place as Edwardian London with Edwardian technology. And in fact, if our technology in the last hundred years had not improved, but our systems of government and finance had gone in the same direction they have gone, things would be absolutely terrible.

PETER MCCORMACK: Well, with technology and innovations, things should get cheaper, faster and better. And if you’re wealthy, they probably have.

The Hidden Theft of Monetary Inflation

CURTIS YARVIN: Yes, they have definitely gotten cheaper, faster and better. But to equate those — those are hedonic changes — and to equate those with financial changes is really strange and wrong.

So if you look at the way CPI is calculated, for example, by the Labor Department, this is one of the triumphs of 21st century statistics. And when you’re basically doing statistics and you see two groups of numbers that are different and you’re like, “I’m going to average these groups of numbers and report them as a single thing,” you’re really in a very strange place.

When you look at basically CPI metrics as a basket of products in the U.S., first of all, they’re all rated hedonically. So you see this K-shaped curve, and the top of the K is basically things that are human services, like medical bills or college costs or whatever. And those just go straight up at like 8 or 9 or 10% a year. Obamacare has done insane things with this.

And then you have the figure for the cost of a car. Now, the cost of a car has not decreased, but the cars have more horsepower, they have better airbags. And so according to the way we measure these things, this is deflation. What you’re actually saying is that basically when technology improves, the government should be able to steal that dividend from you. And that’s what you’re doing by measuring, by mixing these numbers together.

You’re basically saying, “Well, we diluted the financial system by 10% a year. We expanded the equity of a company and you took 10% off. Well, you have the same number of shares.