I didn’t want to be too negative going into Christmas here, but I have to bring up the fact that the “Coronavirus bailout” appears to be anything BUT that. It appears that most of the “money” will be going to special interests, illegal aliens and foreign countries. For a country that is pushing $30 Trillion of debt (that’s what they admit to) it seems a bit ridiculous to be sending out money that we have to “print up” on top of the money we are currently conjuring up out of nowhere to pay our current bills and interest due on our existing debt. What could possibly go wrong?
I hear so many people fearful of SOCIALISM. We are way past that folks. It appears to me that we are in the midst of fascism (large corporations and the government run everything) and hurtling towards communism and highly likely, a police state.
According to the US Treasury Dept., prior to this debacle, our US budget deficit was $3.2 TRILLION and the ACTUAL BUDGET deficit was over $4.3 Trillion- that they admit to. Add almost another trillion now with 10 months left in fiscal 2021.
Cities and states- many already bankrupt long before this hit -because of overspending, overpromising on pensions, etc. are bleeding red ink now even more than they were before because of the lockdowns, violence, and mass migration out of cities and into places that are showing some signs of sanity in our current craziness. The exodus from the socialist paradises of New York, Illinois, New Jersey and California (to name a few) is continuing as the crime, violence and lockdowns have made many places completely undesirable.
I can’t imagine how these cities and states will be able to survive for any period of time as they are chasing out those who have been paying the bills for years. The productive group that put up with high taxes and smaller spaces are being driven out by crime, homelessness, and the fact that many cities have become ghost towns because of the lockdowns. Our annual trip to NYC which generally includes a show and dinner with our family is cancelled. There are no shows and nowhere to have dinner (indoors anyway) so why go?
My daughter works in the city (NY) and has let us know that she is not totally comfortable traveling to her office because of the homeless and mentally ill that she sees in increasing numbers every day.
While lines at food kitchens are stretching for miles in many places across the country these are a few of the things that our “representatives” think are REALLY important:
$3.3 BILLION to Israel, $453 Million to Ukraine, $10 million for gender programs in Pakistan, Billions to other countries like Cambodia, Burma and others. REMEMBER these payments, which make up over 75% of this bill, while you are cashing your $600.00 check to keep you quiet. (Zerohedge)
A friend of mine sent me a meme which I think describes what we are seeing. In it, Josef Stalin, ruthless dictator of Russia, pulled out all the feathers of a turkey. The bird was bloodied and in immense pain but when Stalin started throwing it crumbs it followed him around anyway. He stated that this was how easy it was to get people to follow your dictates.
We are the turkey, the crumbs are the $600.00 (if you qualify) and the cronies get bailed out, propped up and many who should likely be in jail or at least bankrupt make billions.
Welcome to Amerika.
The total number for the $600.00 checks will be less than $200 billion while the other $700 billion or so will go for just about everything but propping up our own population. Even typically right-leaning politicians are crowing about helping climate change and other nonsense.
In my opinion, we are too far gone to put a stop to this. The politicians (most of them anyway) appear to be compromised in one way or another- or maybe just plain are “bought off” by lobbyists from every large industry.
Hopefully, again in my opinion, this will lead to a quicker collapse so that we can get on with a real recovery rather than the fake recovery we appear to be witnessing right now. I am also hopeful that it will lead many back to what is really important.
It appears to me that “The love of money is the root of all evil” is showing itself in spades right now. Also, those who do evil lose their moral compass and are incapable of seeing their own mistakes. It seems clear to me that those at the top are suffering from these two afflictions. Think about this:
- There is a pandemic. The central banks will “print” money and fix it
- There is no market for government debt- particularly negative interest debt- the central banks will “print” money, buy the bonds and it will appear all is well. This allows bankrupt governments to pretend they are solvent for a little longer and get even farther into debt.
- Businesses are destroyed globally by lockdowns so central banks will “print” money and send out checks so many can pretend they can pay their bills for a while.
- There are 40 million people who are at risk of being evicted shortly. The government will print orders so that the evictions can be delayed for some more time. This could destroy small landlords who don’t have access to debt markets but will likely provide a windfall for large corporations who have access to debt markets and are likely gearing up for the bargains that this misguided action will likely create in the near future. Of course, the central banks will “print” the “money” to make this possible- for those deemed worthy of course.
- There is not enough demand to keep stocks rising so central banks “print” money and buy ETFs, stocks, futures, etc. to create faux demand.
You get the picture. I could go on and on but it appears to me that all that matters to those “in charge” is getting as much for themselves as possible as they ruin businesses and lives across the planet with their price-fixing and financial games to rig virtually all prices. These people produce NOTHING but control the price of EVERYTHING as they skim off the top and manipulate markets to create profits for themselves.
Keep in mind that this WILL end. When is a great question. Personally, just knowing it WILL end is enough for me. That means true price discovery WILL reappear at some time. When it does I believe those counting on traditional debt-based assets that are being artificially propped up now will be grossly disappointed. On the other hand, I also believe that those holding assets being artificially repressed will likely be smiling all the way to the bank.
In the meantime, I am just pointing out what I see and putting my trust in a higher being. All I can control is what I do and all you can control is what you do. How we get ready for a great reset (which is being spoken about openly) may determine how we are able to live the rest of our lives.
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