Many people have to be asking this question as the “virus” is proving to be no more deadly than the seasonal flu based upon research from around the world including Stanford University. Still, we have most states that are still mostly locked down and populations locked in. 24/7 fear-mongering by the major networks are the main reason, in my opinion, why many are still so fearful.
I am not saying people are not dying and that this is nothing BUT the draconian response by politicians is making less and less sense every day. As a matter of fact, doctors are saying that Sweden did not lock down and their number of deaths is slightly higher than their Scandinavian neighbors who did lock down. The numbers are not far off and there is LESS of a chance of a second outbreak later this year because of herd immunity which is NOT achieved when people are separated.
I am no expert in this area but I do pay attention to what those who are experts have to say. Of course, none of this is reported in the mainstream media and the faux fact-checkers on facebook and other sites stifle the dissemination of this information.
This leads me to believe that this crisis was planned and is being used to cover up the real cause of our economic collapse which is too much debt and not enough income without conjuring money up out of nowhere to provide the illusion that all is well.
Almost everyone with a functioning brain can now easily see how manipulated and distorted “markets” are. With each round of dire economic news which, in a real stock market, would likely cause stocks to collapse, these Frankenmarkets continue to rise- even more so the worse the news gets.
Just today it was reported another 3 million people plus filed for unemployment in the last week. That makes 33 MILLION lost jobs in just the last 7 weeks. WOW! And many won’t be coming back anytime soon. Anyone who expects a V shaped recovery in the economy is delusional. The “markets” are a different story because “printing and buying” has left any resemblance of the real economy and the “markets” far in the rear- view mirror.
The futures are way up as I write this on Thursday morning and here are some headlines on ZeroHedge:
“It’s Devastating: Kashakri Says Real Unemployment Rate Is As High As 24%. (It was 20% BEFORE THIS STARTED but at least someone is pointing out that the numbers are not real.) More than likely pushing 50%!
“BOE (Bank of England) Warns Of Worst Economic Slump in 300 Years”
““Biblical” Wave Of Bankruptcies Is About To Flood The US”
“IRS Orders The Dead To Return Stimulus Money” (What comment could possibly be made here?)
“Stocks Have Never Been More Expensive: Disconnect Between Markets And Reality Hits Idiotic Levels” (“Printing and buying” Will do that. Those at the top get wealthy beyond their wildest dreams, the middle class gets crushed and the poor get poorer- what could go wrong?)
The Fed is the lender, buyer and OWNER of last resort.
Why is it that the US Treasury had to put $450 BILLION into the Fed to backstop the first $450 Billion in losses that may take place when they start to buy junk bonds in Early May? They are expected to use 10X leverage to buy $4.5 TRILLION in junk bonds. I wrote a few weeks ago that this could be a backdoor government takeover of private business. Bank of America, while not coming right out and saying it, seems to agree. In a note to the Fed the following quote: “Not to mention the Fed will own debt in companies that will soon restructure and end up holding post-petition equity”. Equity is stock ownership in said company. This appears not to be a bail-out but a BUYOUT of America’s companies.
Could this be a part of the plan- wipe out most small businesses, buy up the big ones, own it all and call all the shots?
This is an entity that conjures up trillions out of nowhere and somehow it makes sense that the US taxpayer (Us!) should backstop an entity that charges us interest on money that was created out of thin air? Is anyone else a little upset that Wall Street has gotten trillions in loans in the last few months at not much more than 0% with not a peep from congress while votes need to be taken to throw a few crumbs to keep the regular folks from taking to the streets? Or that major corporations bankrupted the first bailout for small businesses and that those who finally get loans get to pay more than 10 times what the Wall Street banks were charged?
Does it make any sense, as the Fed is conjuring up trillions, that gold and silver remain range-bound? Only if you understand that the faux cash provided not only props up stocks, bonds and real estate but also allows banks to issue paper contracts that appear to be gold or silver to be sold into the market to reduce the price. Of course, at the same time central banks are setting records for purchasing the real metal, private banks are buying and the regular guy, if he can find any at all, has to pay monster premiums and wait for a month or more to get delivery. Does that sound like a recipe for lower prices- or HIGHER?
The clock is ticking- both for the prop-up and suppression schemes. As the numbers are growing exponentially it appears that the cliff is rapidly approaching.
I wrote years ago about a possible event that could lead to the next black swan event. I opined that the bankruptcy of a state- like Illinois for instance- could lead to a major meltdown. The die was cast for MANY states that have overpromised for pensions, etc. and were running tens of billions in deficits for years. They cannot conjure up money from nowhere like the US government and could have faced decisions that would likely have led to bankruptcy. That would leave many asking “who’s next” and likely cause a major selloff of most assets.
Enter the Coronavirus! California is getting up to $10 Billion in freshly conjured up cash, Illinois is getting even more and this fake money will give the illusion (for a very short period of time) that all is well. Unless the numbers go WAY up this “money” will be gone in weeks or if they’re lucky- months.
The virus will be blamed for DECADES of malfeasance by local and state leaders that basically bought votes with promises of riches in the future for those who played ball. They likely all knew that one day it would blow up but figured they would be long gone at that time. Many are. That day has arrived and only a bailout with fake money from nowhere can hide the real carnage taking place on the balance sheets of cities, states and local governments. But for how long?
John Rubino wrote an article that had these quotes:
“The people running states like New Jersey and cities like Chicago know they’re broke”
“They also know they have only two possible outs: Bankruptcy or some form of federal bailout”
“Gov. JB Pritzker (Illinois) almost instantly had his hand out for- get this- $41 Billion, a sum equal to three times the state’s estimated pandemic-related revenue loss in the coming year. Overall, governors have asked for about $500 billion in aid”.
In our state of Pennsylvania we have a whopping portion of a day set aside in our rainy day fund- among the worst among all the states and we have an economy that is on life support with the electricity out.
In the meantime tens of millions are wondering when things will go back to normal. Those who are astute are asking what things will look like when we attempt to get back to somewhere near normal.
Everything has changed. Have you adjusted your portfolio to adjust to these changes or are you holding on and hoping? Hope is NOT a strategy.
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