A Much Bigger Threat Than Our National Debt
The markets are acting as though it was already summer. They are wandering around with little ambition in either direction.
Meanwhile, we’ve been wondering about… and trying to explain… what it is we are really doing at the Diary.
We expect a violent monetary shock, in which the dollar – the physical, paper dollar – disappears.
But why?
Credit Bubble, the Sequel
As you know, we tend to take the side of the underdogs… as well as half-wits, dipsomaniacs, and unrepentant romantics.
But currently, we are standing up for the young, the poor, and all the others the credit bubble has hurt and handicapped.
It’s not that we are saints or do-gooders. We are just trying to make a living, like everybody else.
But we come at it from a different direction than most. Almost all the movers and shakers have the same bias: They want to see the credit extravaganza continue.
The Federal Reserve has already “invested” (if that’s the right word for throwing phony money down the drain in a futile and jackass effort to hold off the future) $4.5 trillion to protect the balance sheets of the elite.
This money has been amplified by zero-interest-rate policies to something like $17 trillion of stock market gains… and umpteen trillion in bond and real estate profits.
Naturally, the people who own these things – and not coincidentally provide early stage funding for congressional and presidential candidates – do not want to see a new movie.
They want to see the sequel, Credit Bubble 5. Then Credit Bubble 6. And so on…
And the show goes on! They buy their candidates. They place their ads. The newspapers they support voice their opinions. Their corporations wheel and deal on Wall Street, spinning off bonuses, fees… and even higher stock prices.
And the pet economists appointed to run central banks do their bidding.
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