From (the brilliant) Thomas Sowell:
“Socialism in general has a record of failure so blatant that only an intellectual could ignore or evade it.”
More Craziness:
“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.
Economic Craziness:
“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.
“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.
MMT or Modern Monetary Theory will justify increased spending, huge deficits, and accelerating debt – to pay for social programs and the bureaucracy to implement those programs. What could go wrong?
“… the creation of more and more dollars is essential to the functioning of the economy.”
“… the government can always afford to buy anything for sale.”
“The government can always afford to get people jobs and pay wages.”
Full steam ahead on the Crazy Town Express Train to economic and political disaster…
“MMT is the sovereign-friendly justification for deficit spending without end.”
Pension insolvency. Pension funds, both public and private, are increasingly insolvent. Politicians voted to expand benefits, appease unions, buy elections and dump the obligations onto taxpayers and future politicians. The coming recession will spotlight the problems of insolvent and failing pension plans.
Chicago and
Illinois are already flailing about in Crazy Town.
The anguished cries for government to “do something” will be heard during the upcoming recession. Governments created those problems but will be unsuccessful correcting them.Some pensions will not be paid.
Unfunded liabilities. The U.S. has $100 – $200 trillion in unfunded liabilities. That money will come from where? Print, borrow, hyper-inflate or raise taxes? Sensible solutions will be unpopular. Think silver.
From Richard Russell:
“…ALL paper is ultimately valued against the only true, intrinsic money – gold. In world history, no irredeemable paper currency has ever survived.”
Even though fiat money never survives, the PTB use it anyway. Crazy Town policies persist until they hit the wall of reality.
Political:
The Socialist agenda is popular. Expect higher taxes, calls for a Universal Basic Income (UBI), jobs for everyone unless they don’t want to work, Medicare for all, free tuition, and more delusional programs.
“I thought it was a good thing that Amazon was coming to New York and wanted to give us money,” Ocasio-Cortez told the press. “But then I found out they were going to extort people and only give them the money if they worked for it. Forcing people to work if they want to get paid—how is that any different from slavery?”
“Alexandria Ocasio-Cortez push for higher taxes to fund her Green New-Deal is just the tip of the iceberg.”
Is this the iceberg that the US Titanic is approaching?
If government can’t pay its bills now, why add to the problem by implementing an expensive socialist agenda with higher taxes, excessive debt, and more government controls?
Camping out in Crazy Town makes no sense… but here we are. Ask yourself:
- Can government create wealth and prosperity by taxing and spending? Maybe only for the top 0.1%?
- Will more spending, increased benefits and larger government occur without negative consequences?
- Will government and central bank actions, including MMT, QE, and a UBI devalue the dollar further?
- Do you own several Senators on “speed dial?”
If the answers to these questions worry you, consider silver and gold “insurance policies” against loss of fiat currency purchasing power.
Silver is inexpensive. Buy it for peace of mind, purchasing power protection, and “insurance” against the inevitable devaluation of fiat currencies.
Miles Franklin sells “silver insurance” and can arrange storage in non-bank vaults. Call them at 1-800-822-8080.
Trying to escape from Crazy Town…
