by Gary Christianson, Miles Franklin:
- Some economic and political policies have been crazy for so long they almost look sensible.
- Long-term crazy does not mean policies can’t become sensible again.
- Gold and silver will preserve wealth and stay valuable for the next 50 years. Not so for dollars, euros, etc.
- If you are digging a dangerous hole in your finances, health, sanity, or economy, STOP digging.
Every 30—40 years the world goes crazy, takes a deep dive into a shallow rock-filled pond, does a multi-year dance with the Devil, and embraces delusional and nonsensical beliefs. We pay the price in death, debt, and shattered delusions.
- 1912—1918: WWI, creation of the Federal Reserve, global revolutions, governments failed, and income tax implemented.
- 1945—1951: Atomic bombs, the hydrogen bomb, India and Pakistan divide, and sunset on the British Empire.
- 1979—1985: Interest rates in high teens, recessions and bankruptcies, gold and silver bubbles, beginning of a huge bull market in stocks, and rise of the “financialized” economy.
- 2017—2023: Craziness returns. Governments will fall, currencies will weaken or collapse, socialism will rise, goofy economic and political polices will dominate, and devastating wars may begin.
An increasing number of people approve of socialism. But many people are fleeing high-tax states that support expensive social programs. States can’t “print” dollars so someone—taxpayers—must pay for those programs. How long can an indebted state remain solvent when the high-income taxpayers are leaving and the “takers” are staying, while demanding more?
From (the brilliant) Thomas Sowell:
“Socialism in general has a record of failure so blatant that only an intellectual could ignore or evade it.”
From Zerohedge: “Cambridge Economist Protests Brexit By Allowing Students to Sign Her Naked Body During Lecture.” Hmmmm…
“the French National Assembly this week passed an education reform bill which included a controversial amendment to replace all instances of the words ‘mother’ and ‘father’ on official school-related paperwork with the ‘gender neutral’ phrases ‘Parent 1’ and ‘Parent 2’.
Crazy Town exists globally.
The “powers-that-be” (PTB) blame Russia for U.S. problems. Why divert attention toward Russia? Are the PTB hiding things that require a distraction? Hint: Their illegal actions?
Blame toxic masculinity and white males. In years past we blamed Communists, foreigners, Jews, Irish, Germans, Japanese, and others. Are the PTB hiding things that require a distraction? Hint: Failing economic and political policies?
Debt: Borrow from the future to spend in the present because we did not act responsibly in the past. This is a triple failure … three strikes in Crazy Town and you’re out.
- fail to act responsibly in the past
- irresponsible spending in the present
- massive future debt service restricts growth and tax revenues.
The piper must be paid! Governments have ignored this, to their detriment, for centuries.
From David Stockton:
“The central banks of the world have taken their balance sheets from $2 trillion to $25 trillion in roughly two decades, and all of that is one giant fraud because to buy all those assets… they just made it up. It was fiat credit.”
The Federal Reserve mis-priced risk, and created fake prices in stocks, bonds and real estate. Look out below!
Negative interest rates. Call this what it is—confiscation by a bank. Would you give money to a bank knowing they will repay in a depreciating currency created from nothing by an insolvent central bank? Worse, they guarantee your repayment will be smaller than your initial deposit. If it sounds crazy that’s because it is. But trillions of euros “pay” negative interest. They are Camped out in Crazy Town.
Ever-increasing debt. The U.S. government is (officially) in debt $22 trillion. That debt will either default or be repaid with hyper-inflated currency. Pick your poison and watch paper assets dwindle in purchasing power. Think silver.
QE or Quantitative Easing or Bond Monetization or theft of purchasing power from savings and dollar denominated investments. QE was an emergency measure used to address central bank created problems in the 2008 financial crisis. Now QE appears to be a permanent sink-hole in Crazy Town.
From USA Gold:
“Ominously, San Francisco Federal Reserve president Mary Daly told reporters last week that the Fed is considering quantitative easing as a permanent option in the monetary toolkit…”
QE was ineffective, so we’ll escalate? Well, QE benefited the financial and political elite…
The citizens of the United States would not VOTE to diminish their purchasing power to support central bankers, the financial elite, and the political elite. The Central Banks follow the dictates of the elite and their governments (economic craziness), not the needs of the people.