by Gary Christianson, Miles Franklin:
From John Fogerty:
“Long as I remember,
The rain been comin’ down,
Clouds of mystery pourin’
Confusion on the ground.
Good men through the ages
Tryin’ to find the sun.
And I wonder,
Still I wonder
Who’ll stop the rain.”
The Rain that’s coming down… not gonna stop…
We’re not talking about liquid water that condenses from clouds and nourishes plants.
Instead, it’s a deluge of:
Yup, the falling rain of fiscal, monetary, and political nonsense has turned into a deluge. It will get better and then worse. Coming are a second wave, a respite, and then a third wave.
What else should we expect in an election year with a deeply polarized electorate? Add the power struggle between the “Deep State” and those who seek change. Stir in resentment against the political and financial elite. Mix with a devastating COVID-19 shutdown. Agitate the combination.
Address with the same failed remedies:
Rain is pouring down. Expect:
SPECIFICALLY:
Central Bank Printing: The Fed added over $3 trillion to its balance sheet in a few months. They bailed out Wall Street and the US government.
For perspective, that newly printed $3 trillion is twelve times the value of the gold supposedly vaulted in Fort Knox. The Fed can create digital dollars, but not gold. The future actions of the Fed are obvious—they will create boatloads of digital dollars. Chairman Powell confirmed that the Fed will do whatever is necessary.
National Debt:
September 30, 2000 $5.67 trillion
September 30, 2010 $13.56 trillion
January 1, 2020 $23.17 trillion
May 22, 2020 $25.47 trillion
National debt increase in less than five months: $2.3 trillion. The House passed another bailout bill for $3 trillion. It is an election year. Name three senators who are worried about the national debt. Right! A version of that bill is likely to pass. More bailout dollars and expanded debt are inevitable.
UNEMPLOYED WORKERS: Over 38 million Americans have filed for unemployment in the last two months. The real number of unemployed is higher. Expect bailouts and more “Helicopter Money.”
CRUSHING DEBTS: Many Americans did not pay rent in April or May. The same is true for mortgage payments, credit cards and auto loans. Expect bailouts to funnel dollars to individuals so they can feed the Debt Monster.
BANKRUPTCIES, LOST REVENUES AND CLOSED BUSINESSES: Several retail giants have declared bankruptcies. Many small businesses have closed forever. Some will survive, others will fail in the “second wave” regardless of how many digital dollars the Fed prints. The Fed can’t print prosperity.
WALL STREET BAILOUTS AND REPO MADNESS: Wall Street on Parade said, “By March 14, the Fed had pumped out more than $9 trillion in revolving repo loans to the trading houses on Wall Street…” The Fed worries about big banks and hedge funds. Small businesses and individuals cause minimal concerns in the Eccles Building.
HELICOPTER MONEY: The CARES act authorized $300 billion for individuals. A possible next step is a UBI—Universal Basic Income for most adult Americans. A UBI will aid the lower 90% so they can feed the Debt Monster.
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