First the Deflationary Deluge of Assets Crashing, Then the Tsunami of Inflation

First the Deflationary Deluge of Assets Crashing, Then the Tsunami of Inflation

The greatest fairy tale of them all is the Fed has our back. The belief here is that all the dollars created out of thin air by the Fed will flow into stocks. But there is no actual causal mechanism in this belief; the Fed can create dollars out of thin air but they don't have to flow into the stock market; they can go elsewhere. They only flow into stocks because the financiers, banks and other parasites and predators are counting on greater fools to pay ever higher prices for stocks based on their erroneous faith that the Fed's new money magically goes straight into stocks.

Once the pool of greater fools dries up, stocks crash regardless of what the Fed does or bleats, up to the point that the Fed is given the legal go-ahead to buy stocks directly. That's when the inflation everyone anticipates will begin. But inflation is just as unruly a beast as an asset bubble, and control is never quite as complete as the Fed claims.

First the deflationary deluge, then the tsunami of inflation. Both destroy the wealth of believers in fairy tales.

We're Living the Founding Fathers' Nightmare: America Is Corrupt to the Core

We are living the Founders' nightmare, for America is corrupt to the core. While everyone gorging at the public trough bleats about the "common good," their single-minded focus is on aggrandizing as much power and private wealth as possible, and feeding their corrupt crew of insiders, lobbyists, "business interests," bankers and assorted other legalized looters.

America has plenty of law enforcement, prosecutors and prison cells for those who loot a Whole Foods, but none for those who loot the public treasury, commit stock market swindles or financial fraud on a monumental scale. Not only did no one go to prison for the rampant institutionalized fraud of the 2008 looting, a.k.a. the Global Financial Meltdown--the looters were bailed out by the Federal Reserve and Treasury.

Members of Congress were caught red-handed in what amounted to insider trading, selling millions of dollars in their stock portfolios based on their secret briefings of the coming pandemic, while they reassured the public Covid-19 was no biggie. The farcical "investigation" found no wrong-doing.

In today's America, the tyranny of corruption has been so normalized that America's polarized populaces are blind to the profound corruption of their parties and institutions. As in the last days of the Western Roman Empire, the masses are made complicit with bread and circuses, mimicking their "leaders" debasement of the public good to feeding at the public trough.

DYI:  If you are wondering why I post Charles Smith material so often is simply this:  HE GET’S IT!  The level of corruption in America is now off the charts.  This will not end well.  The stock market over two to three cycles will drop from 65% to 85%.  Using February 12, 2020 at 29,551.42 for the Dow Jones Industrial average with an eighty five percent drop will place the Dow at 4433!  Between massive overvaluation and corruption this is the most likely outcome. 

Please note this will take multiple of years before the bottom will set in as the Fed’s will throw every tool they have to stop the decline.  They will fail!

SO HOLD ONTO TO YOUR HATS AND CASH PLUS PRECIOUS METALS THINGS HAVE JUST STARTED TO GET INTERESTING!

TILL NEXT TIME

DYI