A Flawless Flock of Scoundrels

One of the fringe benefits of living in a country that’s in dire need of a political, financial, and cultural reset, is the twisted amusement that comes with bearing witness to its unraveling.  Day by day we’re greeted with escalating madness.  Indeed, the great fiasco must be taken lightly, so as not to be demoralized by its enormity.

 

Symphony grotesque in Washington [PT]

 

Of particular note is the present cast of characters.  Could Bill Shakespeare himself have come up with a more flawless flock of scoundrels to take the plotless narrative from comedy to tragedy?

There’s President Trump, Hillary Clinton, Paul Ryan, Mitch McConnell, Maxine Waters, Chuck Schumer, Nancy Pelosi, Robert Mueller, the Podesta Brothers, all of Congress; the list of political actors goes on and on.  Moreover, it wouldn’t be complete if we didn’t also mention former A-lister’s Barney Frank and O-Bama.

The efforts of members of the political class to climb and crawl over each other to reach the top of the dust heap and stay there are without restraint.  Promises, lies, coercion, and deceit are all part of Washington’s standard operating procedure. They’ll steal from your kids and lie to grandma to get what they want.

Financial actors like Jamie Dimon, Lloyd Blankfein, John Stumpf, Steven Mnuchin, Janet Yellen, various Fed Presidents, and soon to enter stage right, Jerome Powell, have their parts to play too.  Namely, to extract as much of the savings and future earnings from the general population as possible without triggering a revolt.

 

The Congress… a bunch of facinorous, serpigo-infested swinge-bucklers, roynish cony-catching nuthooks and cozeners. Obviously. [PT]

 

Tricks with No Treats

Then there’s the cultural cast, perhaps the worst of all.  This company includes dirt bags like Harvey Weinstein, Kevin Spacey, Bill Cosby, the Kardashians, half of the NFL, cultural appropriation police, and an endless assortment of freaks, dweebs, geeks, and weirdos.  Have you heard of Caitlyn Jenner?

Until very recently, the cultural actors primarily served to distract the public from the crimes of their cohorts in the elitist class.  But now the stage spotlight shines directly on them.  Their exposed skeletons are a disgrace.

Still, their skeletons, along with nearly all story-lines circulating, are enormous distractions.  In fact, there are so many distractions it’s hard to tell what is real.  Certainly, Halloween week has provided a multitude of tricks – yet, no treats – to chew on.

 

Harvey Weinstein disposal squad spotted in Hollywood; meanwhile, young persons reportedly escaped from Kevin Spacey’s basement as far back as 2005. [PT]

 

There was special counsel Robert Mueller’s indictment of several of President Trump’s campaign advisors.  Somehow this has something to do with Russian meddling in the 2016 election.  More accurately, it provides grounds for the Washington establishment to escalate its efforts to impeach Trump.

Nonetheless, could there be a more one-sided witch hunt?  What about Hillary Clinton and Tony Podesta?  What we mean is, what is the objective of Mueller’s fiddle faddle?  Is it an investigation or a cover up?

 

The Elbonian investigation…

 

This week also brought forth another trick – the House Republicans’ tax reform bill.  From what we gather, the bill would result in a moderate reduction in taxes for most households.  But it doesn’t really simplify things. What’s more, the tax cuts will require greater amounts of government debt to pay for them.  And the problem of too much debt, after all, is already bearing down on all of us.

 

How to Survive the Winter

Many Americans have borrowed far more money than they will ever be able to pay back.  At the time of borrowing, it may have seemed like the sensible thing to do.  Some borrowed money to invest in their education.  Others took on massive levels of mortgage debt to buy a house in a nice neighborhood.

These are both sensible things to do when the economy is in the midst of a long-term growth trend.  From World War II until the turn of the new millennium these debt burdens generally worked out for people.  Well-paying jobs were commonly available to bail out college graduates.  Similarly, rising incomes softened the mortgage borrower’s debt burden over time.

 

The overwhelmed consumer

Image credit: Corbis

 

But all that has changed, especially after the Great Recession.  Individual debt levels have increased.  However, the means to pay off the debt have decreased.  This is a gigantic problem that won’t magically go away.

Who knows?  Maybe prayers will be answered.  Real gross domestic product (GDP) has grown at an estimated annual rate of 3 percent  or more for two quarters in a row.  Perhaps increasing GDP will grow the economy, and individuals, out of debt.  Unfortunately, we suspect the GDP growth was fueled by record consumer debt.  Rather than diminishing overall debt burdens, it seems to increase them.

The point is, the Potemkin village of inflated stock and real estate prices cannot continue indefinitely.  When asset prices crack, and pension funds are exposed as being in terminal arrears, exacting clarity will prevail.  Federal, state, and local governments are flat broke.  So, too, are corporations and consumers.

 

One day after the arrival of clarity, central planning agencies begin an extensive review of their priorities. [PT]

 

Thus you should enjoy the harvest season while it lasts.  You may want to pickle a few eggs to survive the winter.

 

Image captions by PT

 

MN Gordon is President and Founder of Direct Expressions LLC, an independent publishing company. He is the Editorial Director and Publisher of the Economic Prism – an E-Newsletter that tries to bring clarity to the muddy waters of economic policy and discusses interesting investment opportunities.

 

 

 

Emigrate While You Can... Learn More

 


 

 
 

Dear Readers!

You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.

   

Bitcoin address: 12vB2LeWQNjWh59tyfWw23ySqJ9kTfJifA

   
 

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • The Gold Debate – Where Do Things Stand in the Gold Market?
      A Recurring Pattern When the gold price recently spiked up to approach the resistance area even Aunt Hilda, Freddy the town drunk, and his blind dog know about by now, a recurring pattern played out. The move toward resistance fanned excitement among gold bugs (which was conspicuously lacking previously). This proved immediately self-defeating - prices pulled back right away, as they have done almost every time when the slightest bit of enthusiasm emerged in the sector in recent...
  • Monetary U-Turn: When Will the Fed Start Easing Again? Incrementum Advisory Board Meeting Q1 2019
      Special Guest Trey Reik and Board Member Jim Rickards Discuss Fed Policy On occasion of its Q1 meeting in late January, the Incrementum Advisory Board was joined by special guest Trey Reik, the lead portfolio manager of the Sprott Institutional Gold & Precious Metal Strategy at Sprott USA since 2015 [ed note: as always, a PDF of the complete transcript can be downloaded further below].   Trey Reik of Sprott USA.   Also at the meeting, Jim Rickards, who is inter...
  • Acting Man Returns - A Brief Housekeeping Note
      Pater Temporarily Keels Over Regular readers have no doubt noticed that the blog has fallen silent for around three weeks and may be wondering what has happened. In a nutshell, we were hospitalized. After a lengthy time period during which our health gradually but steadily deteriorated (we have complained about this previously), we finally keeled over. Thereupon we were forced to entrust the ruin that houses our mind to an experienced team of doctors (depicted below).   A...
  • Watch Europe - Free Pass for the Elliott Wave European Financial Forecast
      Europe at an Important Juncture European economic fundamentals have deteriorated rather noticeably over the past year - essentially ever since the German DAX Index topped out in January 2018. Now, European stock markets have reached an important juncture from a technical perspective. Consider the charts of the Euro-Stoxx 50 Index and the DAX shown below:   The Euro-Stoxx 50 Index already peaked in early November 2017, the DAX followed suit in January 2018 – such divergent peaks...
  • Why Warren Buffett Should Buy Gold
      Riding the Tailwinds of Fiat Money Inflation to Fame and Fortune Warren Buffett bought his first shares of stock when he was 11 years old.  He saved up $114.75 and “went all in,” purchasing three shares of Cities Service preferred stock.  The day was March 11, 1942 – nearly 77 years ago.  Buffett recently reminisced about this purchase in his annual letter to shareholders:   “I had become a capitalist, and it felt good.”   The Oracle of Omaha – he was...
  • Fake Money’s Face Value Deceit
      Not the Brightest Tool in the Shed Shane Anthony Mele stumbled off the straight and narrow path many years ago.  One bad decision here.  Another there.  And he was neck deep in the smelly stuff. These missteps compounded over the years and also magnified his natural shortcomings.  Namely, that he’s a thief and – to be polite – a moron.   Over-educated he ain't: Shane Anthony Mele, whose expressive mug was captured by a Florida police photographer first in...
  • Rise of the Zombies - Precious Metals Supply and Demand
      Rise of the Zombies - Precious Metals Supply and Demand Last week, the prices of gold and silver fell $35 and ¢70, respectively. But what does that mean (other than woe unto anyone who owned silver futures with leverage)? The S&P 500 index and the euro was up a bit, though the yuan was flat and copper was down. Most notably, the spread between Treasury and junk yields fell. If the central banks can lower the risk of default premium, they can make everything unicorns and...
  • Bitcoin Bottom Building
      Defending 3,800 and a Swing Trade Play For one week, bulls have been defending the 3,800 USD value area with success. But on March 4th they had to give way to the constant pressure. Prices fell quickly to the 3,700 USD level. These extended times of range bound trading are typical for Bitcoin Bottom Building in sideways ranges. This 60 minute chart of Bitcoin shows (represented by the yellow candlestick wicks) how the bulls defended 3,800 USD :   BTCUSDT 60 minute chart...
  • The Magic Doesn't Always Work - Precious Metals Supply and Demand
      The Week Ends with a Surprise The weekly closing prices of the precious metals were up +$5 and +¢11. But this does not tell the full story of the trading action. Prices were dropping until Friday. More precisely, Friday 8am in New York, or 1pm in London.   Gold and silver - back in demand on Friday... [PT]   At that moment, a light cabal conspiring to jack the price struck traders began buying. The end result was the prices, especially of silver, rose on the day...
  • Intraweek Profit Opportunities
      In 6 of 10 Countries a Single Day Outperforms the Entire Week! In the Seasonal Insights issue of 13 February 2019 I presented a study illustrating the power of intraweek effects. The article was entitled “S&P 500 Index: A Single Day Beats the Entire Week!” The result of the study: if one had been invested exclusively during a single day of the week since 2000  – namely on Tuesday – one would have outperformed a buy and hold strategy, beating the broad market. Moreover,...

Support Acting Man

Item Guides

Austrian Theory and Investment

j9TJzzN

The Review Insider

Archive

Dog Blow

350x200

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

Mish Talk

 
Buy Silver Now!
 
Buy Gold Now!