by Charles Hugh Smith, Of Two Minds:
America’s problem isn’t a lack of deficit spending/consumption. America’s problems are profoundly structural.
The nice thing about free to me money from any source is the recipients don’t have to change anything. Free money is the ultimate free-pass from consequence and adaptation: instead of having to make difficult trade-offs or suffer the consequences of profligacy, the recipients of free money are saved: they can continue on their merry way, ignoring the monumental dysfunction of their lifestyle.
This explains the appeal of Modern Monetary Theory (MMT), which holds that deficit spending is the “solution” to all our problems because governments can’t go broke–they can always emit whatever currency they need via printing or borrowing.
On Friday, we reported that among the five “nuclear” options available to Beijing to retaliate against Trump’s latest $100BN in proposed import tariffs, was the choice whether to sell US Treasuries. But what if Beijing did not want to unleash a full-blown market nuke, and instead was hoping for a targeted, EMP hit?
Then it would simply stop buying US paper, instead of dumping it outright; in the process it wouldn’t hurt the US too much – avoiding a furious tit-for-tat response – but would still send a clear signal to the White House, whose fiscal spending plan will more than double net Treasury issuance this year from under $500BN to over $1 trillion, and which needs every possible marginal buyer of US paper, both domestic and foreign.
Which is precisely what a new report by SGH Macro Advisors claims.
by Dave Kranzler, Investment Research Dynamics:
Has anyone besides me wondered what happened to the documented accusations about Ray Dalio and his Bridgewater fund management operation? The allegations were out there and it was big news for about a day. I would appear to have been quickly covered-up and the media has been given a “leave it alone” warning.
It’s been my view since circa 2003 that “they” would hold up the system with printed money and credit creation until every last crumb of middle class wealth was swept off the table and into the pockets of those in position to do the sweeping: Corporate America, the very wealthy (“wealthy” = enough disposable cash to buy a few politicians and Federal judges) and the political elite – the latter of which are compensated pawns for the first two cohorts. You can call yourself a “one-percent’er.” But is you don’t have the kind of cash lying around that it takes to bribe high level politicians (i.e millions), you are middle class. Who are “they?” Here’s a great description:
Look at Obama – perfect example. Obama delivered nothing on his original campaign promises. He was going to “reform” Wall Street. But the concept of Too Big To Fail was legislated under Obama and Wall Street indictments/prosecutions fell precipitously from the previous Administration. Obama was supposed to clean up DC. What happened there?
Obama left office and entered into a world of high six-figure Wall Street-sponsored speaking engagements and to live in a $10 million estate in Hawaii paid for by the Chicago elite (Pritzkers etc). Now Obama will be paid off $10’s of millions for his role in aiding and abetting the transfer of trillions from the middle class to the elitists. Look at Bill and Hillary – need I say more? Trump has reversed course on his campaign promises twice as quickly as Obama. Almost overnight after his inauguration, Trump became a war-mongering hand-puppet for the Deep State’s “Swamp” creatures.
The media has been willingly complicit in this big charade. Much to my complete shock, Brett Arends has published a commnentary on Marketwatch which, from an insider, warns about the media:
Do you want to know what kind of person makes the best reporter? I’ll tell you. A borderline sociopath. Someone smart, inquisitive, stubborn, disorganized, chaotic, and in a perpetual state of simmering rage at the failings of the world. Once upon a time you saw people like this in every newsroom in the country. They often had chaotic personal lives and they died early of cirrhosis or a heart attack. But they were tough, angry SOBs and they produced great stories.
Do you want to know what kind of people get promoted and succeed in the modern news organization? Social climbers. Networkers. People who are gregarious, who “buy in” to the dominant consensus, who go along to get along and don’t ask too many really awkward questions. They are flexible, well-organized, and happy with life. And it shows.
Read More @ InvestmentResearchDynamics.com
from Fellowship Of The Minds:
In a bill-signing event in New York last August 15, New York’s Demonrat governor Andrew Cuomo, a rumored 2020 presidential candidate, said: “We’re not going to make America great again. It was never that great.”
Some millennials agree.
On this Thanksgiving Day, let’s look at how Americans compare with the rest of the world in wealth.
by Thorsten Polleit, Mises Wire:
Starting in 2020, Facebook wants to offer its customers a global high-tech currency and infrastructure. The US IT giant says that this will provide many people around the world with easy and cost-effective access to the monetary and financial system. The new blockchain-based money is called “Libra.” Technically, it is something akin to a crypto-money-banknote covered by a basket of official fiat currencies (such as US dollars, euros, and the like). The heart of the Libra project is the “Libra Association” (LA). The non-governmental association, based in Geneva, Switzerland, is supported by founding members such as eBay, Facebook, Mastercard, PayPal, Spotify, Uber, Visa, as well as other renowned firms, and will be responsible for the operation and further development of Libra.
by Michael Snyder, The Economic Collapse Blog:
If you know people that actually believe that the U.S. economy is moving in a positive direction, just show them this article. In all the years that I have been writing about the economy, I have never seen anything that even comes close to what we are experiencing now. More than 100,000 businesses have permanently failed, and tens of millions of Americans have lost their jobs. If you still have a good job you should cling to it with all of your might, because there are so many families that have no idea how they are going to pay the bills next month, or the month after that, or that month after that. When it gets to the point where you can’t even pay the rent or the mortgage, financial worries can absolutely consume your life. If you have been there, you know exactly what I am talking about. And if you have children, that just makes things even worse. How do you explain to them that “home” is no longer “home”?
Insurers tell California citizens to drop dead: Fire coverage yanked from 350,000 residents in response to PG&E power blackouts and ‘fire risk’
by JD Heyes, Natural News:
Why Americans continue to elect Democrats, whose policies are tyrannical and economically destructive, is a mystery.
That is especially the case in California, which is a case study in authoritarianism when one political party possesses a super majority.
Recently, California – an arid state despite the fact that it has a large Pacific coastline – suffered through several very destructive, deadly wildfires that many experts blamed on the Democrats’ goofy, nonsensical environmental policies.