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.

 

___________________________________________________________________________________________

   

Dear Readers!

You may have noticed that our header carries ab black flag. This is due to the recent passing of the main author of the Acting Man blog, Heinz Blasnik, under his nom de plume 'Pater Tenebrarum'. We want to thank you for following his blog for meanwhile 11 years and refer you to the 'Acting Man Classics' on the sidebar to get an introduction to his way of seeing economics. In the future, we will keep the blog running with regular uptates from our well known Co-Authors. For that, some financial help would be greatly appreciated. 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:

  • Time for a Silver Trade?
      Time for a Silver Trade? The price of silver has been going down,and then down some more.From over $28 a year ago, and over $26.50 a month ago, it’s now at a new low under $22.50. Four bucks down in a month. However, it’s been behaving differently than gold behind the scenes. Let’s look at the gold and silver basis charts to see.     Gold Fundamentals – Gold Basis Analysis     The gold basis (i.e. abundance to the market) was...
  • Forensic Analysis of Fed Action on Silver Price
      Forensic Analysis of Fed Action on Silver Price The last few days of trading in silver have been a wild ride. On Wednesday morning in New York, six hours before the Fed was to announce its interest rate hike, the price of silver began to drop. It went from around $22.65 to a low of $22.25 before recovering about 20 cents. At 2pm (NY time), the Fed made the announcement. The price had already begun spiking higher for about two minutes.     As an aside,...

Support Acting Man

Austrian Theory and Investment

Archive

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!