Thursday, July 15, 2021

"Après Uber-Loose Monetary Policies"

"Après Uber-Loose Monetary Policies"
by Bill Bonner

YOUGHAL, IRELAND – "As we saw yesterday, inflation has not gotten on the bus yet. At a 5.4% annual running rate, consumer prices are now rising about as fast as they did in the mid-1970s. Producer prices are rising at an even faster pace – 7.3% year-on-year. Here’s Federal Reserve Chairman Jerome Powell, speaking to the House Financial Services Committee yesterday: "Right now of course inflation is not moderately above 2%, it is well above 2%. It’s nothing like 'moderately.'”

What’s ahead, reporters wanted to know? Here’s Powell again... "It will depend on the path of the economy, it really will. It’s just a perfect storm of high demand and low supply. And it should pass. Unless we think there’s going to be a multi-year shortage of used cars in the United States, we should look at [high inflation] as temporary."

Used cars… used tractors (as we saw yesterday)… and used houses are all rising in price. New cars are scarce on dealer lots; used cars are especially in demand, trading for 10.5% more in June than the previous month.

Catch-22: But Powell did not mention where all that demand comes from… or why it might not go away anytime soon. Say’s Law – named after French economist Jean-Baptiste Say – tells us that real demand comes from real people who produce real goods and services. They sell their output for money, which they can then use to buy other peoples’ goods and services. This demand does not increase prices, because it only arises as the quantity of goods and services available also rises.

Powell must know that his money-printing creates a whole different kind of demand – one that brings forth no corresponding goods or services… and thereby, causes prices to rise. He has created a bubble economy, in other words – inflated by fake money. He knows, too, that the Fed has put itself in the Inflate and Die trap. It has to keep the fake money flowing… or the fake boom will collapse. But if it keeps the money flowing, consumer prices will continue to rise… and Powell may be forced (at least, according to the mainstream narrative) to restrain them.

No Escape: Which leaves inquiring minds with a giant question mark. This from Mohamed El-Erian, writing in the Financial Times: "What is clear to me is that we are moving irresistibly closer to a critical question for the economy and markets, and not just in the US: is there still the possibility of an orderly exit from what has been a remarkably long period of uber-loose monetary policies?"

You already know the answer to that, don’t you, Dear Reader? The elite control the government. The government controls the money. The whole economy – notably the wealth, power, and status of the elite themselves – now depends on more and more money-printing. Ergo, there will be no exit – orderly or otherwise – from the Fed’s uber-loose monetary policies.

But staying the course will not be orderly, either. Bubbles blow up and burst… in a disorderly way. And then, central bankers… presidents… members of Congress… economists… investors… and columnists panic, causing more disorder and chaos.

Subsidized Gambling: But let us look at what Powell et al. have wrought. Then, we will see what an exit from their uber-loose policies would mean. Currently, house buyers can get a mortgage at a negative real interest rate. A cursory Google search turns up rates under 4%, while consumer prices rise at least 100 basis points faster. At these interest rates, it is no wonder house prices are going up so fast.

Wall Street speculators are also able to get super-cheap money. They can now borrow money at zero real cost. In an honest economy, speculators have to pay to play. Interest rates serve as a kind of ticket price for gamblers entering the casino. But today, the doors are wide open. The “cost of carry” – the charge speculators pay to gamble with someone else’s money – is less than zero. In other words, it is as if they were being paid to make reckless bets.

Major Shock: Getting back to normal would be a major shock to the marketplace. Let’s see, if the “cost of carry” suddenly went up to 5%... or 8%... the rank speculation would quickly come to an end. Investors would toss aside the riskiest stocks as if they were used face masks. Zombie businesses, that can only pay the interest on their debt by borrowing more, would collapse. Asset prices, generally, would drop, and probably come to rest at only half of today’s levels.

Mortgage rates are usually 2.5% to 3% above inflation. Today’s rates would have to double to get there. What would that do to house prices? As for the Fed’s key funds rate – now at 0.25% – it would have to go up by more than 500 basis points, just to pull even with consumer price increases. Jobs lost, businesses failed, households bankrupted, investments wiped out – welcome to the end of the uber-loose monetary policies.

Inflate and Die Trap: And here, we see clearly how the Inflate and Die trap works: The higher inflation rates go, the bigger the shock to the economy needed to bring them under control. And this shock wouldn’t be limited to home buyers and stockholders. The biggest borrower in the world is the federal government. And the biggest lender in the world is the Fed.

Thanks to Fed buying, a 10-year Treasury note – the building block of all federal debt – now trades at a yield of about 1.4%. At last month’s CPI reading (5.4% year-on-year), that yield is negative by 400 basis points (4%). “The trouble with trouble is that it starts as fun,” a dear reader reminded us. And if bond buyers demanded a real return (above inflation)… the interest charged on new bond issues would quadruple. The fun would be over.

All of a sudden, more stimulus would be out of the question. The big, new “infrastructure bill” (at $3.5 trillion), too. And those unemployment “toppers,” that pay people more for not working than they earned on the job? History! Exiting in an orderly way? Nah… Prepare for le deluge."

"Life In Texas; Cryptos Plunge; Get A Side Hustle Now"

Full screen recommended.
Jeremiah Babe, AM 7/15/21:
"Life In Texas; Cryptos Plunge; Get A Side Hustle Now"

Gregory Mannarino, AM 7/15/21: "Important Updates"

Gregory Mannarino, AM 7/15/21:
"Important Updates"

The End of the Nation-State"

"The End of the Nation-State"
by Doug Casey

"There have been a fair number of references to the subject of "phyles" in this publication over the years. This essay will discuss the topic in detail. Especially how phyles are likely to replace the nation-state, one of mankind’s worst inventions. Now might be a good time to discuss the subject. We’ll have an almost unremitting stream of bad news, on multiple fronts, for years to come. So it might be good to keep a hopeful prospect in mind.

Let’s start by looking at where we’ve been. I trust you’ll excuse my skating over all of human political history in a few paragraphs, but my object is to provide a framework for where we’re going, rather than an anthropological monograph. Mankind has, so far, gone through three main stages of political organization since Day One, say 200,000 years ago, when anatomically modern men started appearing. We can call them Tribes, Kingdoms, and Nation-States.

Karl Marx had a lot of things wrong, especially his moral philosophy. But one of the acute observations he made was that the means of production are perhaps the most important determinant of how a society is structured. Based on that, so far in history, only two really important things have happened: the Agricultural Revolution and the Industrial Revolution. Everything else is just a footnote. Let’s see how these things relate.

The Agricultural Revolution and the End of Tribes: In prehistoric times, the largest political/economic group was the tribe. In that man is a social creature, it was natural enough to be loyal to the tribe. It made sense. Almost everyone in the tribe was genetically related, and the group was essential for mutual survival in the wilderness. That made them the totality of people that counted in a person’s life - except for "others" from alien tribes, who were in competition for scarce resources and might want to kill you for good measure.

Tribes tend to be natural meritocracies, with the smartest and the strongest assuming leadership. But they’re also natural democracies, small enough that everyone can have a say on important issues. Tribes are small enough that everybody knows everyone else, and knows what their weak and strong points are. Everyone falls into a niche of marginal advantage, doing what they do best, simply because that’s necessary to survive. Bad actors are ostracized or fail to wake up, in a pool of their own blood, some morning. Tribes are socially constraining but, considering the many faults of human nature, a natural and useful form of organization in a society with primitive technology.

As people built their pool of capital and technology over many generations, however, populations grew. At the end of the last Ice Age, around 12,000 years ago, all over the world, there was a population explosion. People started living in towns and relying on agriculture as opposed to hunting and gathering. Large groups of people living together formed hierarchies, with a king of some description on top of the heap.

Those who adapted to the new agricultural technology and the new political structure accumulated the excess resources necessary for waging extended warfare against tribes still living at a subsistence level. The more evolved societies had the numbers and the weapons to completely triumph over the laggards. If you wanted to stay tribal, you’d better live in the middle of nowhere, someplace devoid of the resources others might want. Otherwise it was a sure thing that a nearby kingdom would enslave you and steal your property.

The Industrial Revolution and the End of Kingdoms: From around 12,000 B.C. to roughly the mid-1600s, the world’s cultures were organized under strong men, ranging from petty lords to kings, pharaohs, or emperors. It’s odd, to me at least, how much the human animal seems to like the idea of monarchy. It’s mythologized, especially in a medieval context, as a system with noble kings, fair princesses, and brave knights riding out of castles on a hill to right injustices. As my friend Rick Maybury likes to point out, quite accurately, the reality differs quite a bit from the myth. The king is rarely more than a successful thug, a Tony Soprano at best, or perhaps a little Stalin. The princess was an unbathed hag in a chastity belt, the knight a hired killer, and the shining castle on the hill the headquarters of a concentration camp, with plenty of dungeons for the politically incorrect.

With kingdoms, loyalties weren’t so much to the "country" - a nebulous and arbitrary concept - but to the ruler. You were the subject of a king, first and foremost. Your linguistic, ethnic, religious, and other affiliations were secondary. It’s strange how, when people think of the kingdom period of history, they think only in terms of what the ruling classes did and had. Even though, if you were born then, the chances were 98% you’d be a simple peasant who owned nothing, knew nothing beyond what his betters told him, and sent most of his surplus production to his rulers. But, again, the gradual accumulation of capital and knowledge made the next step possible: the Industrial Revolution.

The Industrial Revolution and the End of the Nation-State: As the means of production changed, with the substitution of machines for muscle, the amount of wealth took a huge leap forward. The average man still might not have had much, but the possibility to do something other than beat the earth with a stick for his whole life opened up, largely as a result of the Renaissance.

Then the game changed totally with the American and French Revolutions. People no longer felt they were owned by some ruler; instead they now gave their loyalty to a new institution, the nation-state. Some innate atavism, probably dating back to before humans branched from the chimpanzees about 3 million years ago, seems to dictate the Naked Ape to give his loyalty to something bigger than himself. Which has delivered us to today’s prevailing norm, the nation-state, a group of people who tend to share language, religion, and ethnicity. The idea of the nation-state is especially effective when it’s organized as a "democracy," where the average person is given the illusion he has some measure of control over where the leviathan is headed.

On the plus side, by the end of the 18th century, the Industrial Revolution had provided the common man with the personal freedom, as well as the capital and technology, to improve things at a rapidly accelerating pace. What caused the sea change?

I’ll speculate it was largely due to an intellectual factor, the invention of the printing press; and a physical factor, the widespread use of gunpowder. The printing press destroyed the monopoly the elites had on knowledge; the average man could now see that they were no smarter or "better" than he was. If he was going to fight them (conflict is, after all, what politics is all about), it didn’t have to be just because he was told to, but because he was motivated by an idea. And now, with gunpowder, he was on an equal footing with the ruler’s knights and professional soldiers.

Right now I believe we’re at the cusp of another change, at least as important as the ones that took place around 12,000 years ago and several hundred years ago. Even though things are starting to look truly grim for the individual, with collapsing economic structures and increasingly virulent governments, I suspect help is on the way from historical evolution. Just as the agricultural revolution put an end to tribalism and the industrial revolution killed the kingdom, I think we’re heading for another multipronged revolution that’s going to make the nation-state an anachronism. It won’t happen next month, or next year. But I’ll bet the pattern will start becoming clear within the lifetime of many now reading this.

What pattern am I talking about? Once again, a reference to the evil genius Karl Marx, with his concept of the "withering away of the State." By the end of this century, I suspect the US and most other nation-states will have, for all practical purposes, ceased to exist.

The Problem with the State - And Your Nation-State: Of course, while I suspect that many of you are sympathetic to that sentiment, you also think the concept is too far out, and that I’m guilty of wishful thinking. People believe the state is necessary and - generally - good. They never even question whether the institution is permanent.

My view is that the institution of the state itself is a bad thing. It’s not a question of getting the right people into the government; the institution itself is hopelessly flawed and necessarily corrupts the people that compose it, as well as the people it rules. This statement invariably shocks people, who believe that government is both a necessary and permanent part of the cosmic firmament.

The problem is that government is based on coercion, and it is, at a minimum, suboptimal to base a social structure on institutionalized coercion. Let me urge you to read the Tannehills’ superb The Market for Liberty, which is available for free, download here.

One of the huge changes brought by the printing press and advanced exponentially by the Internet is that people are able to readily pursue different interests and points of view. As a result, they have less and less in common: living within the same political borders is no longer enough to make them countrymen. That’s a big change from pre-agricultural times when members of the same tribe had quite a bit - almost everything - in common. But this has been increasingly diluted in the times of the kingdom and the nation-state. If you’re honest, you may find you have very little in common with most of your countrymen besides superficialities and trivialities.

Ponder that point for a minute. What do you have in common with your fellow countrymen? A mode of living, (perhaps) a common language, possibly some shared experiences and myths, and a common ruler. But very little of any real meaning or importance. To start with, they’re more likely to be an active danger to you than the citizens of a presumed "enemy" country, say, like Iran. If you earn a good living, certainly if you own a business and have assets, your fellow Americans are the ones who actually present the clear and present danger. The average American (about 50% of them now) pays no income tax. Even if he’s not actually a direct or indirect employee of the government, he’s a net recipient of its largesse, which is to say your wealth, through Social Security and other welfare programs.

Over the years, I’ve found I have much more in common with people of my own social or economic station or occupation in France, Argentina, or Hong Kong, than with an American union worker in Detroit or a resident of the LA barrios. I suspect many of you would agree with that observation. What’s actually important in relationships is shared values, principles, interests, and philosophy. Geographical proximity, and a common nationality, is meaningless - no more than an accident of birth. I have much more loyalty to a friend in the Congo - although we’re different colors, have different cultures, different native languages, and different life experiences - than I do to the Americans who live down the highway in the trailer park. I see the world the same way my Congolese friend does; he’s an asset to my life. I’m necessarily at odds with many of "my fellow Americans"; they’re an active and growing liability.

Some might read this and find a disturbing lack of loyalty to the state. It sounds seditious. Professional jingoists like Rush Limbaugh, Sean Hannity, Bill O’Reilly, or almost anyone around the Washington Beltway go white with rage when they hear talk like this. The fact is that loyalty to a state, just because you happen to have been born in its bailiwick, is simply stupid.

As far as I can tell, there are only two federal crimes specified in the US Constitution: counterfeiting and treason. That’s a far cry from today’s world, where almost every real and imagined crime has been federalized, underscoring that the whole document is a meaningless dead letter, little more than a historical artifact. Even so, that also confirms that the Constitution was quite imperfect, even in its original form. Counterfeiting is simple fraud. Why should it be singled out especially as a crime? (Okay, that opens up a whole new can of worms… but not one I’ll go into here.) Treason is usually defined as an attempt to overthrow a government or withdraw loyalty from a sovereign. A rather odd proviso to have when the framers of the Constitution had done just that only a few years before, one would think.

The way I see it, Thomas Paine had it right when he said: "My country is wherever liberty lives." But where does liberty live today? Actually, it no longer has a home. It’s become a true refugee since America, which was an excellent idea that grew roots in a country of that name, degenerated into the United States. Which is just another unfortunate nation-state. And it’s on the slippery slope."

"How It Really Is"



Wednesday, July 14, 2021

"The US Dollar Purchasing Power Falls to 30 Year Low"

Full screen recommended.
Dan, IAllegedly, PM 7/14/21:
"The US Dollar Purchasing Power Falls to 30 Year Low"
"The Dollar falls to a 30 year low as far as its purchasing power goes. This is catastrophic for people on fixed incomes or people that are trying to get ahead with the impending hyper inflation."

"This Is The Worst Inflation Since The 1970s & The Stage Is Set For The Total Collapse Of US Economy"

Full screen recommended.
"This Is The Worst Inflation Since The 1970s & 
The Stage Is Set For The Total Collapse Of US Economy"
by Epic Economist

Have you already started feeling the impacts of living in a country with double-digit inflation? Just yesterday, the Bureau of Labor Statistics released an update indicating that the consumer price index had soared to 5.4 percent over the past year, and such a high rate alarmed a lot of people. However, those people will be shocked to find out that the way inflation is calculated has been changed dozens of times over the past several decades, and if the rate was still calculated the way it was back in 1990, the official inflation rate would currently be about 9 percent.

Over the past 12 months, home prices have risen a staggering 20 percent, but the housing component of inflation into the consumer price index is simply meaningless. Even though the latest report does admit that we just registered the biggest annual increase in consumer prices in 13 years if you were looking for the recent increase in home prices to show up in that number, you're going to be very disappointed because the "shelter" component of inflation measured by the index has remained steady, marking around 2% to 3.5% over the past decade.

Needless to say, many analysts and economists have a problem with that. According to Jiro Yoshida, a business professor at Penn State University, it doesn't matter how much home prices go up, the overall rate of housing inflation is "always around 2.5% regardless of economic conditions”. In the ideal world that the Bureau of Labor Statistics is trying to portray, it would be just wonderful if our housing costs would only account for 3.5 percent of our overall budget each month, but in the real world, that figure is completely inaccurate. For the vast majority of American workers, housing is the single biggest expense that they have to face on a regular basis. If we added that large increase in home prices into the overall CPI, inflation would have been nearly half a percentage point higher. And if we added the latest increase in rent prices, we would have an 8.4% annualized inflation, which is significantly above the 2.5% CPI rent. That's not a small difference.

Everyone can see that inflation levels are simply off the charts right now. Another major example of it is car prices, which have been rising at a very alarming pace. According to JD Power, the average new car price hit a record of $38,255 in May, shooting up by 12 percent in a year. To make things worse, several industries are experiencing a shortage of components and goods, ranging from semiconductors to food staples, while consumer demand never ceased to grow. Since the health crisis exploded in America, our politicians and policymakers have started to pump trillions upon trillions of freshly printed dollars into the financial system thinking there wouldn't be serious consequences. Unfortunately for all of us, they were absolutely wrong.

A former IMF economist and a senior fellow with the American Enterprise Institute, Desmond Lachman, recently told Breitbart News that the United States is beginning to resemble a Latin American country given its out of control inflation, high government spending, and continual printing of money. “The U.S. is in a very bad position from a long-term point of view. I don’t see how this can end well when we’re currently running budget deficits something like 15 percent of GDP,” Lachman said. “This is beginning to look a little bit like a Latin American country.”

The truth is that we're headed to the greatest debt crisis in the history of the world, and at such a critical moment, the U.S. government has decided to destroy the value of the reserve currency of the planet in the name of unnecessary spending for unnecessary projects. During the 1970s and early 1980s, inflation was so wildly out of control at an annual rate of 14.8 percent that the Federal Reserve had to raise the country's key interest rate sharply. But if that happens right now, we will experience the worst economic and financial crisis ever. What they are doing to us is essentially setting the stage for the total collapse of the U.S. economy, and the economic pain that is coming will ravage the life of every single man, woman, and child in the entire country."

Musical Interlude: Chuck Wild, Liquid Mind, “Dream Ten”

Chuck Wild, Liquid Mind, “Dream Ten” 

"A Look to the Heavens"

"What will become of our Sun? The first hint of our Sun's future was discovered inadvertently in 1764. At that time, Charles Messier was compiling a list of diffuse objects not to be confused with comets. The 27th object on Messier's list, now known as M27 or the Dumbbell Nebula, is a planetary nebula, one of the brightest planetary nebulae on the sky - and visible toward the constellation of the Fox (Vulpecula) with binoculars. 
It takes light about 1000 years to reach us from M27, featured here in colors emitted by hydrogen and oxygen. We now know that in about 6 billion years, our Sun will shed its outer gases into a planetary nebula like M27, while its remaining center will become an X-ray hot white dwarf star. Understanding the physics and significance of M27 was well beyond 18th century science, though. Even today, many things remain mysterious about planetary nebulas, including how their intricate shapes are created."

“Societal Collapse”

“Societal Collapse”
by Hardscrabble Farmer

“Anyone interested in understanding the mechanics of human history must first and foremost understand the cycles of Nature and the nature of living things. There exists a balance in every closed system; creation and dissolution, growth and decay, life and death. There is no escape from this dynamic, no means by which one can exist without the other. Sometimes societies ascend, but eventually, over time, they collapse.

For a very long time America has benefited from exploiting the reserves of other nations – their labor, their resources, and their environments in a form of cultural strip mining. It has given the appearance of a sustainable system that required no effort to store surpluses or to build reserves for the future. There has been a perpetual live for the moment feel to our experience that was based on such illusory systems as credit and fiat.

These things are not real. They are manifest realities, things that exist only because a critical mass of people agree to believe in them rather than what is reflected by actuality. When such time occurs that a large enough number of people abandon their participation in that system, reality rushes in to the void left behind.

A large part of what we are seeing – as described to us by experts or media – is occult in nature, hidden not by design or subterfuge, but due to the ignorance or stupidity of the mass of men. They no longer recognize that a large part of what is taking place on the streets of cities like Portland and Minneapolis is simply a mating ritual for a generation that was so atomized and dissolute that they had no opportunity to make real life connections with the opposite sex except through electronic devices. Living beings cannot- despite the assurances of the Musks and Weils- exist by proxy.

They must eat, sleep, perform some activity during their waking hours, seek companionship, etc. These drives can be sublimated or suppressed either by societal controls or chemical dependencies, but they cannot be removed from our core drive. This is what happens when humans are thwarted from fulfilling their animal destinies – the drives of their particular species. If you eliminate the family, you do not stop fornication. If you eradicate healthy foods and a connection to its production, you do not eliminate hunger. Thus the dramatic rise in obesity and the ubiquity of pornography.

Everything exists in context, there is no way to eliminate the void left behind in a fatherless home without a corresponding flow of the feminine. A mind that has no reason will seek to replace it with an equal measure of emotion.

The Western Cultural experience that gained prominence and near global hegemony over the past several centuries is in terminal decline, accelerated by the opportunistic interference of competing cultural spheres, but predominantly by its own senescence. We are, in short, spent. What we are seeing is not a political or ideological struggle – again, manifest realities – but the natural process of a cultural expiration. The West is dying and with it all of the ideals and symbols that were attached to its rise.

Just as an elderly family member in their last days makes a point to give away their possessions, America is passing its treasures on; freedom of speech, the iconic symbols of Manifest Destiny like the statues of its heroes, even its own birthright to the rising of a new cultural expression, one that is less concerned with things like honor, nobility, truth and justice. None of those things exist in Nature, but rather are created and used like iron tools to achieve an end. Now that its energy is spent they serve no purpose, especially to the multitudes of others who share a far more dynamic and exuberant expression of collective identity.

This is a natural event, no different from a forest fire, but one which applies to the human species specifically. This is how we clear the ground for whatever is to replace us and we will serve as its fertilizer.”

“Regret..."

“Regret for the things we did can be tempered by time;
it is regret for the things we did not do that is inconsolable.”
- Sydney J. Harris

Gregory Mannarino, PM 7/14/21: "US Dollar Purchasing Power Craters To 40 Year Low! Debts And Deficits Explode Higher"

Gregory Mannarino, PM 7/14/21:
"US Dollar Purchasing Power Craters To 40 Year Low! 
Debts And Deficits Explode Higher"

“Living In Moms Basement; Consumer Prices Soar; Fixed Income Destruction; Low Paying Jobs”

Full screen recommended.
Jeremiah Babe, PM 7/14/21:
“Living In Moms Basement; Consumer Prices Soar; 
Fixed Income Destruction; Low Paying Jobs”

The Daily "Near You?"

Grangeville, Idaho, USA. Thanks for stopping by!

"This Is The Worst Inflation Since The 1970s, And The Stage Is Being Set For The Total Collapse Of The U.S. Economy"

"This Is The Worst Inflation Since The 1970s, And The 
Stage Is Being Set For The Total Collapse Of The U.S. Economy"
by Michael Snyder

How does it feel to live in a country with double-digit inflation? On Tuesday, the Bureau of Labor Statistics told us that the consumer price index has risen 5.4 percent over the past 12 months, and such a high number shocked a lot of people. But in order to make a fair comparison to the past, we have to account for the fact that the way inflation is calculated has been changed literally dozens of times over the past several decades. According to John Williams of shadowstats.com, if inflation was still calculated the way that it was back in 1990, the official rate of inflation over the past 12 months would be about 9 percent. And if inflation was still calculated the way that it was back in 1980, the official rate of inflation over the past 12 months would be well into double-digits.

Everyone that has been warning that we could soon see inflation rise to levels that we haven’t witnessed since the the Jimmy Carter years can stop, because we are already there. The Bureau of Labor Statistics is committing fraud, because the numbers that they give us are almost meaningless. For example, U.S. home prices have risen 20 percent over the past year, but the “shelter component of inflation” makes up only a tiny fraction of the overall consumer price index…

We’ll get the latest read on inflation Tuesday, when the Bureau of Labor Statistics puts out its consumer price index for the month of June. As you may recall, the May report showed the biggest annual increase in consumer prices, 5%, in 13 years. But if you’re looking for the recent jump in home prices to show up in that number, you’re likely to be disappointed. The shelter component of inflation, as measured by the CPI, has stayed pretty steady, from around 2% to 3.5%, for the past decade. And some economists have a problem with that.

Wouldn’t it be wonderful if your mortgage payment accounted for only 3.5 percent of your overall budget each month? Needless to say, such a figure is completely and totally unrealistic. For most of us, housing is the single biggest expense that we face on a regular basis. And as I have documented in many previous articles, housing costs have been soaring into the stratosphere in recent months.

Car prices are also rising at an extremely alarming pace. According to CNN, the average price of a new car has shot up 12 percent over the past year… "In May, the average new car price hit a record $38,255, according to JD Power, up 12% from the same period a year ago. About two-thirds of car buyers paid within 5% of the sticker price in May, with some paying even more."

Instead of buying a new vehicle, you could purchase a used one instead, but used car prices increased 10.5 percent in just the last month… "Last month alone, average used car prices soared 10.5 percent – the largest such monthly increase since record-keeping began in January 1953. That spike accounted for about one-third of the monthly increase for the third straight month."

Renting vehicles has gotten a lot more expensive as well. In fact, average rental rates are up a whopping 86 percent since this point in 2020… "Daily car rental rates have increased 86% compared to this time last year and 140% more than 2019, according to Julie Hall, a spokesperson for AAA."

The “5.4 percent inflation” fairly tale that the Labor Department is trying to sell us is absolutely laughable. And as long as they keep putting out such doctored numbers, they are going to have zero credibility.

Everyone can see that prices are skyrocketing all around us. In such an environment, a restaurant in New York can charge 200 dollars for French fries and some people will actually pay that price… "Serendipity3, the iconic Upper East Side restaurant, set a Guinness World Records title for making the “Most Expensive French Fries” — just in time to celebrate National French Fry Day Tuesday! Serendipity3’s Creative Director and Chef Joe Calderone and Corporate Executive Chef Frederick Schoen-Kiewert are the masterminds behind the “Creme de la Creme Pommes Frites,” which cost a whopping $200."

Our leaders thought that they could pump trillions upon trillions of fresh dollars into the system without any serious consequences. Sadly, they were dead wrong. Inflation is wildly out of control, and one economist just told Breitbart News that the U.S. is starting “to look a little bit like a Latin American country”… "Desmond Lachman, an economist and senior fellow with the American Enterprise Institute (AEI), told Breitbart News on Sunday that the U.S. is beginning to resemble a Latin American country given its inflation, government spending, and printing of money.

“The U.S. is in a very bad position from a long-term point of view. I don’t see how this can end well when we’re running — now — budget deficits something like 15 percent of GDP,” Lachman said on SiriusXM’s Breitbart News Sunday with host Joel Pollak. “This is beginning to look a little bit like a Latin American country.”

It is actually much worse than that. The truth is that we are in the terminal phase of the greatest debt bubble in the history of the world, and at such a critical moment U.S. officials have decided to systematically destroy the value of the reserve currency of the planet.

Prior to the pandemic, the U.S. government was stealing more than a hundred million dollars an hour from future generations of Americans, but now our politicians have upped that rate to more than 300 million dollars an hour. And when the next major crisis comes along, they will pass even more “emergency packages”, because spending money is the only solution they have.

Meanwhile, the Federal Reserve continues to pump giant mountains of money into the financial system. Since September 2019, the size of the Fed balance sheet has more than doubled, and that should be considered a crime against humanity. Unfortunately, the vast majority of Americans don’t even know what the Federal Reserve is, and only a small fraction of the population actually understands what they are currently doing to our financial system.

Facing no significant resistance, our politicians will continue to get us into staggering amounts of debt, and the Fed will continue to transform the U.S. dollar into toilet paper. Sadly, what they are doing is setting the stage for the collapse of the late, great U.S. economy, and the economic pain that is ahead will affect every single man, woman and child on the entire planet."

"The Right to Be Let Alone: What to Do When COVID Strike Force Teams Come Knocking"

"The Right to Be Let Alone: What to Do When 
COVID Strike Force Teams Come Knocking"
By John W. Whitehead & Nisha Whitehead

“Experience teaches us to be most on our guard to protect liberty when the government’s purposes are beneficent.” - Supreme Court Justice Louis D. Brandeis

"A federal COVID-19 vaccination strike force may soon be knocking on your door, especially if you live in a community with low vaccination rates. Will you let them in? More to the point, are you required to open the door?

The Biden Administration has announced that it plans to send federal “surge response teams” on a “targeted community door-to-door outreach“ to communities with low vaccination rates in order to promote the safety and accessibility of the COVID-19 vaccines.

That’s all fine and good as far as government propaganda goes, but nothing is ever as simple or as straightforward as the government claims, especially not when armed, roving bands of militarized agents deployed by the Nanny State show up at your door with an agenda that is at odds with what Supreme Court Justice Louis Brandeis referred to as the constitutional “right to be let alone.”

Any attempt by the government to encroach upon the citizenry’s privacy rights or establish a system by which the populace can be targeted, tracked and singled out must be met with extreme caution. These door-to-door “visits” by COVID-19 surge response teams certainly qualify as a government program whose purpose, while seemingly benign, raises significant constitutional concerns.

First, there is the visit itself. While government agents can approach, speak to and even question citizens without violating the Fourth Amendment, Americans have a right not to answer questions or even speak with a government agent. Courts have upheld these “knock and talk” visits as lawful, reasoning that even though the curtilage of the home is protected by the Fourth Amendment, there is an implied license to approach a residence, knock on the door/ring the bell, and seek to contact occupants. However, the encounter is wholly voluntary and a person is under no obligation to speak with a government agent in this situation.

Indeed, you don’t even need to answer or open the door in response to knocking/ringing by a government agent, and if you do answer the knock, you can stop speaking at any time. You also have the right to demand that government agents leave the property once the purpose of the visit is established. Government officials would not be enforcing any law or warrant in this context, and so they don’t have the authority of law to remain on the property after a homeowner or resident specifically revokes the implied license to come onto the property.

When the government’s actions go beyond merely approaching the door and knocking, it risks violating the Fourth Amendment, which requires a warrant and probable cause of possible wrongdoing in order to search one’s property. A government agent would violate the Fourth Amendment if he snooped around the premises, peering into window and going to other areas in search of residents.

It should be pointed out that some judges (including Supreme Court Justice Gorsuch) believe that placing “No Trespassing” signs or taking other steps to impede access to the door is sufficient to negate any implied permission for government agents or others to approach your home, but this view does not have general acceptance.

While in theory one can refuse to speak with police or other government officials during a “knock and talk” encounter, as the courts have asserted as a justification for dismissing complaints about this police investigative tactic, the reality is far different. Indeed, it is unreasonable to suggest that individuals caught unaware by these tactics will not feel pressured in the heat of the moment to comply with a request to speak with government agents who display official credentials and are often heavily armed, let alone allow them to search one’s property. Even when such consent is denied, police have been known to simply handcuff the homeowner and conduct a search over his objections.

Second, there is the danger inherent in these knock-and-talk encounters. Although courts have embraced the fiction that “knock and talks” are “voluntary” encounters that are no different from other door-to-door canvassing, these constitutionally dubious tactics are highly intimidating confrontations meant to pressure individuals into allowing police access to one’s home, which then paves the way for a warrantless search of one’s home and property.

The act of going to homes and taking steps to speak with occupants is akin to the “knock and talk” tactic used by police, which can be fraught with danger for homeowners and government agents alike. Indeed, “knock-and-talk” policing has become a thinly veiled, warrantless exercise by which citizens are coerced and intimidated into “talking” with heavily armed police who “knock” on their doors in the middle of the night. “Knock-and-shoot” policing might be more accurate, however.

“Knock and talks” not only constitute severe violations of the privacy and security of homeowners, but the combination of aggression and surprise employed by police is also a recipe for a violent confrontation that rarely ends well for those on the receiving end of these tactics.

For example, although 26-year-old Andrew Scott had committed no crime and never fired a single bullet or threatened police, he was gunned down by police who knocked aggressively on the wrong door at 1:30 am, failed to identify themselves as police, and then repeatedly shot and killed Scott when he answered the door while holding a gun in self-defense. The police were investigating a speeding incident by engaging in a middle-of-the-night “knock and talk” in Scott’s apartment complex.

Carl Dykes was shot in the face by a county deputy who pounded on Dykes’ door in the middle of the night without identifying himself. Because of reports that inmates had escaped from a local jail, Dykes brought a shotgun with him when he answered the door.

As these and other incidents make clear, while Americans have a constitutional right to question the legality of a police action or resist an unlawful police order, doing so can often get one arrested, shot or killed.

Third, there is the question of how the government plans to use the information it obtains during these knock-and-talk visits. Because the stated purpose of the program is to promote vaccination, homeowners and others who reside at the residence will certainly be asked if they are vaccinated. Again, you have a right not to answer this or any other question. Indeed, an argument could be made that even asking this question is improper if the purpose of the program is merely to ensure that Americans “have the information they need on how both safe and accessible the vaccine is.”

Under the Privacy Act, 5 U.S.C. 552a, an agency should only collect and maintain information about an individual as is “relevant and necessary to accomplish a purpose of the agency.” In this situation, the government agent could accomplish the purpose of assuring persons have information about the vaccine simply by providing that information (either in writing or orally) and would not need to know the vaccination status of the residents. To the extent the agents do request, collect and store information about residents’ vaccination status, this could be a Privacy Act violation.

Of course, there is always the danger that this program could be used for other, more nefarious, purposes not related to vaccination encouragement. As with knock-and-talk policing, government agents might misuse their appearance of authority to gain entrance to a residence and obtain other information about it and those who live there. Once the door is opened by a resident, anything the agents can see from their vantage point can be reported to law enforcement authorities.

Moreover, while presumably the targeting will be of areas with demonstrated low vaccination rates, there is no guarantee that this program would not be used as cover for conducting surveillance on areas deemed to be “high crime” areas as a way of obtaining intelligence for law enforcement purposes.

We’ve been down this road before, with the government sending its spies to gather intel on American citizens by questioning them directly, or by asking their neighbors to snitch on them. Remember the egregiously invasive and intrusive American Community Survey?

Unlike the traditional census, which collects data every ten years, the American Community Survey (ACS) is sent to about 3 million homes per year at a reported cost of hundreds of millions of dollars. Moreover, while the traditional census is limited to ascertaining the number of persons living in each dwelling, their ages and ethnicities, the ownership of the dwelling and telephone numbers, the ACS is much more intrusive, asking questions relating to respondents’ bathing habits, home utility costs, fertility, marital history, work commute, mortgage, and health insurance, among other highly personal and private matters.

Individuals who receive the ACS must complete it or be subject to monetary penalties. Although no reports have surfaced of individuals actually being penalized for refusing to answer the survey, the potential fines that can be levied for refusing to participate in the ACS are staggering. For every question not answered, there is a $100 fine. And for every intentionally false response to a question, the fine is $500. Therefore, if a person representing a two-person household refused to fill out any questions or simply answered nonsensically, the total fines could range from upwards of $10,000 and $50,000 for noncompliance.

At 28 pages (with an additional 16-page instruction packet), the ACS contains some of the most detailed and intrusive questions ever put forth in a census questionnaire. These concern matters that the government simply has no business knowing, including questions relating to respondents’ bathing habits, home utility costs, fertility, marital history, work commute, mortgage, and health insurance, among others. For instance, the ACS asks how many persons live in your home, along with their names and detailed information about them such as their relationship to you, marital status, race and their physical, mental and emotional problems, etc. The survey also asks how many bedrooms and bathrooms you have in your house, along with the fuel used to heat your home, the cost of electricity, what type of mortgage you have and monthly mortgage payments, property taxes and so on.

However, that’s not all. The survey also demands to know how many days you were sick last year, how many automobiles you own and the number of miles driven, whether you have trouble getting up the stairs, and what time you leave for work every morning, along with highly detailed inquiries about your financial affairs. And the survey demands that you violate the privacy of others by supplying the names and addresses of your friends, relatives and employer. The questionnaire also demands that you give other information on the people in your home, such as their educational levels, how many years of school were completed, what languages they speak and when they last worked at a job, among other things. While some of the ACS’ questions may seem fairly routine, the real danger is in not knowing why the information is needed, how it will be used by the government or with whom it will be shared.

Finally, you have the right to say “no.” Whether police are knocking on your door at 2 am or 2:30 pm, as long as you’re being “asked” to talk to a police officer who is armed to the teeth and inclined to kill at the least provocation, you don’t really have much room to resist, not if you value your life. Mind you, these knock-and-talk searches are little more than police fishing expeditions carried out without a warrant. The goal is intimidation and coercion.

Unfortunately, with police departments increasingly shifting towards pre-crime policing and relying on dubious threat assessments, behavioral sensing warnings, flagged “words,” and “suspicious” activity reports aimed at snaring potential enemies of the state, we’re going to see more of these warrantless knock-and-talk police tactics by which police attempt to circumvent the Fourth Amendment’s warrant requirement and prohibition on unreasonable searches and seizures.

Here’s the bottom line. These agents are coming to your home with one purpose in mind: to collect information on you. It’s a form of intimidation, of course. You shouldn’t answer any questions you’re uncomfortable answering about your vaccine history or anything else. The more information you give them, the more it can be used against you. Just ask them politely but firmly to leave.

In this case, as in so many interactions with government agents, the First, Fourth and Fifth Amendments (and your cell phone recording the encounter) are your best protection. Under the First Amendment, you don’t have to speak (to government officials or anyone else). The Fourth Amendment protects you against unreasonable searches and seizures by the government. And under the Fifth Amendment, you have a right to remain silent and not say anything which might be used against you.

You can also post a “No Trespassing” sign on your property to firmly announce that you are exercising your right to be left alone. If you see government officials wandering around your property and peering through windows, in my opinion, you have a violation of the Fourth Amendment. Government officials can ring the doorbell, but once you put them on notice that it’s time for them to leave, they can’t stay on your property.

It’s important to be as clear as possible and inform them that you will call the police if they don’t leave. You may also wish to record your encounter with the government agent. If they still don’t leave, immediately call the local police and report a trespasser on your property.

Remember, you have rights. The government didn’t want us to know about - let alone assert -those rights during this whole COVID-19 business. After all, for years now, the powers-that-be - those politicians and bureaucrats who think like tyrants and act like petty dictators regardless of what party they belong to - have attempted to brainwash us into believing that we have no right to think for ourselves, make decisions about our health, protect our homes and families and businesses, act in our best interests, demand accountability and transparency from government, or generally operate as if we are in control of our own lives.

But we have every right, and you know why? Because as the Declaration of Independence states, we are endowed by our Creator with certain inalienable rights - to life, liberty, property and the pursuit of happiness - that no government can take away from us.

Unfortunately, that hasn’t stopped the government from constantly trying to usurp our freedoms at every turn. Indeed, the nature of government is such that it invariably oversteps its limits, abuses its authority, and flexes its totalitarian muscles. Take this COVID-19 crisis, for example.

What started out as an apparent effort to prevent a novel coronavirus from sickening the nation (and the world) has become yet another means by which world governments (including our own) can expand their powers, abuse their authority, and further oppress their constituents. The government has made no secret of its plans. Just follow the money trail, and you’ll get a sense of what’s in store: more militarized police, more SWAT team raids, more surveillance, more lockdowns, more strong-armed tactics aimed at suppressing dissent and forcing us to comply with the government’s dictates. It’s chilling to think about, but it’s not surprising.

In many ways, this COVID-19 state of emergency has invested government officials (and those who view their lives as more valuable than ours) with a sanctimonious, self-righteous, arrogant, Big Brother Knows Best approach to top-down governing, and the fall-out can be seen far and wide.

It’s an ugly, self-serving mindset that views the needs, lives and rights of “we the people” as insignificant when compared to those in power. That’s how someone who should know better such as Alan Dershowitz, a former Harvard law professor, can suggest that a free people - born in freedom, endowed by their Creator with inalienable rights, and living in a country birthed out of a revolutionary struggle for individual liberty - have no rights to economic freedom, to bodily integrity, or to refuse to comply with a government order with which they disagree.

According to Dershowitz, who has become little more than a legal apologist for the power elite, “You have no right not to be vaccinated, you have no right not to wear a mask, you have no right to open up your business… And if you refuse to be vaccinated, the state has the power to literally take you to a doctor’s office and plunge a needle into your arm.”

Dershowitz is wrong: as I make clear in my book "Battlefield America: The War on the American People," while the courts may increasingly defer to the government’s brand of Nanny State authoritarianism, we still have rights. The government may try to abridge those rights, it may refuse to recognize them, it may even attempt to declare martial law and nullify them, but it cannot litigate, legislate or forcefully eradicate them out of existence."

Musical Interlude: Il Divo, "Wicked Game" (Melanconia)

Full screen recommended.
Il Divo, "Wicked Game" (Melanconia) 
(Live In London 2011)

"How It Really Is, And Oh Boy, It Will Be..."


Gregory Mannarino, AM 7/14/21: "Hyper-Alert! FED Admits Any Taper Is 'Way Off' And Inflation Will Persist"

Gregory Mannarino, AM 7/14/21:
"Hyper-Alert! FED Admits Any Taper Is 
'Way Off' And Inflation Will Persist"

"Dare..."

"Relax..."

"Relax. They're not going to kill us. They're going to
TRY and kill us. And that is a very different thing."
 - Steve Voake, "The Dreamwalker's Child"

"Our world is not safe. It is a toxic swamp populated by predators and parasites. The odds are stacked against us from the moment of conception. We survive only because we fight the elements, hunger, disease, each other. And, although civilization promises us safe harbor, that promise is a fairy tale. Only the storm is real. It comes for each of us. And we cannot win. We can only choose how we will suffer our defeat. We can meekly take our beatings, and die like lemmings, finding solace in the belief that we shall one day inherit the earth. Or, we can plunge into the chaos with eyes wide open, taking comfort instead from the bruises, scars, and broken bones which prove that we fought to live and die as gods."
 - J.K. Franko, "Life for Life"

"The worst part is wondering how you'll find the strength tomorrow to go on doing what you did today and have been doing for much too long, where you'll find the strength for all that stupid running around, those projects that come to nothing, those attempts to escape from crushing necessity, which always founder and serve only to convince you one more time that destiny is implacable, that every night will find you down and out, crushed by the dread of more and more sordid and insecure tomorrows. And maybe it's treacherous old age coming on, threatening the worst. Not much music left inside us for life to dance to. Our youth has gone to the ends of the earth to die in the silence of the truth. And where, I ask you, can a man escape to, when he hasn't enough madness left inside him? The truth is an endless death agony. The truth is death. You have to choose: death or lies. I've never been able to kill myself."
-  Louis-Ferdinand Celineo

MUST WATCH! Greg Hunter, "Hyperinflation Will Collapse Biden Administration"

"Hyperinflation Will Collapse Biden Administration"
By Greg Hunter’s USAWatchdog.com

"Clif High is an Internet data mining expert who uses something he calls “Predictive Linguistics,” which sorts through billions of bits of information on the Internet to predict future trends and events. He has many well-documented correct predictions. High predicted a month ago, “The Biden Administration would be in full collapse by this fall.” The CV19 Vax door knocking campaign from the Biden camp, to harass people into getting the jab, is simply a prelude to the coming collapse. High explains, “It’s a sign of desperation, and it’s a sign of weakness. What they do not realize is the people doing this work are going to be assaulted by the people they are going to be talking to verbally and sometimes physically. It won’t go well for the workers. It’s going to cause lots and lots and lots of videos and audio recordings to come into existence that the Biden Administration will desperately not want to have happened. At some point, I think it will be the PR aspect that will get them to cancel it. People will take the opportunity to ‘red pill’ these workers and record it. It will be like my enemy is sending his troops to me. Let me see if I can convert them to my purpose.”

How will the collapse of the Biden Administration take place? High says, “This is an economic issue.  We exist on the petro-dollar empire, and that empire is dying very rapidly. We are in the very final phases of that death. In that final phase, we reach hyperinflation. We are at the point that hyperinflation has broken loose. It’s reported at 5.4%, but it’s really hyper. It really is three times that or four times that. Energy, since Biden took over, is up 40%. We are now reaching a point of the inflation to run parallel with the debt that is going to reach an extreme. This extreme, by my calculations, should impact the Biden Administration in some form of a catastrophic crisis around the last half of September. Fundamentally, it will be the inability to pay for things. It will be a situation where the hyperinflation has so outpaced normal expectation that all of the government contracts in the computers, which have limits and constraints, will have blown beyond those limits and constraints. The government will not be able to write checks because the computers will refuse to print them. This is a crude way of explaining it.  There are thousands of constraints built into software configured at a time when there was a more rational view of inflation.”

High goes on to say, “We are at that point where empire is collapsing. The empire is collapsing because the money is no good.”

High also talks about the breakdown of society because so many high-skilled people will die from the jabs. High says the “lockdown plan that would have killed many has failed,” because of President Trump. High also contends, “The power elite are committed. They can’t back down now, and they must continue with the idea of trying to kill as many of us as possible, especially now that we have had this great awakening and they have broken the veil of secrecy so to speak. This is why the door to door thing. Inoculation is not a good thing, and the elite are trying to inoculate 95% of humanity out of existence. 

Going back to my data to 2003 and onward, there has always been this area of data that said 1.24 billion people would be dying prematurely. We are at the point right now that a little more than 2 billion people have been inoculated, injected with these mixtures, and if we take the numbers out of various institutes out of London they estimate between 60% and 70% this coming winter will fall ill, and the vast majority of those people will die. This is very close to what my data has predicted since 2003 – 1.24 billion people dying. So, imagine what that is going to do to our social order. At that level, our society will be hovering around breakdown. We won’t have truck drivers, doctors, dentists, and a lot of the healthcare workers inoculated themselves. We won’t have airline pilots, and we may not have pilots for large ships to get them in and out of port. That’s a highly skilled job, and it takes years to train someone.”

High also has data on the massive amounts of bodies that will need to be buried or cremated because of the deaths from the CV19 jabs. It is gruesome.

High also talks about bitcoin, gold, silver, the stock market and how a new financial system will emerge. Spoiler alert: gold, silver and Bitcoin are not going lower in price, according to Clif High - just the opposite. High also talks about data on election fraud, the CCP attack on Nov 3, 2020, and how it will all be coming out into the open. Will Donald Trump get back into office? High has data on that too and will explain it. High says the elite will become prisoners of “We the People.” The great awakening of “We the People” will leave the elite no place to hide and no place to run."

Join Greg Hunter on Rumble as he goes 
One-on-One with Internet data mining expert Clif High:

(Program Note: What is written here is a fraction of what is in this 70 min. interview. I will not be doing a Weekly News Wrap-Up on Friday 7/16/21. I did this a month ago when Clif High was on, and this interview is better than that one. Please take time to carefully listen as High lays out what to expect from August to the end of the year.)
Related, an absolute Must Read:

Tuesday, July 13, 2021

"The Everything Crisis Has Begun; Inflation Nightmare; Wealth Transfer Tsunami; Pension Crisis"

Full screen recommended.
Jeremiah Babe, PM 7/13/21:
"The Everything Crisis Has Begun; Inflation Nightmare; 
Wealth Transfer Tsunami; Pension Crisis"

"Inflation is Surging as Wages are Falling - People are Unprepared"

Full screen recommended.
Dan, IAllegedly, PM 7/13/21:
"Inflation is Surging as Wages are Falling - People are Unprepared"
"We go from one Extreme to Another. We started the homeless encampment in Austin, Texas. Then we go to the Hyatt Regency Lost Pines. Inflation is surging higher than it has in the last 30 years and wages are dropping before our eyes. People need to get ready."

"Harry Dent: Get Prepared For The Biggest Stock Market Crash In Our Lifetime"

Full screen recommended.
"Harry Dent: Get Prepared For 
The Biggest Stock Market Crash In Our Lifetime"
by Epic Economist

"Once again, market veterans, financial analysts, and economists are sending a warning message for investors: Brace for the biggest stock market crash of all times - a major pullback has already started! One of the most recent alerts comes from Moody's Analytics chief economist Mark Zandi, who expects a market correction of up to 20% as the Federal Reserve is left with no other choice rather than hiking interest rates amid soaring inflation. This time around, unlike other sharp drops witnessed in the past, Zandi argues that a rapid recovery won't be in the cards particularly because the market is extremely overvalued. It would take over a year to return to break even, he said. In an interview with CNBC, Zandi said "the headwinds are building for the equity market," and "the Federal Reserve has got to switch gears here” because the economy is at risk of overheating.

He suggested that a significant market crash may already be underway because investors are starting to get spooked. Sell-off concerns are also making Morgan Stanley analysts warn that major US stock indexes are in a "rolling correction" despite recording a series of new highs. "As investors rotate away from higher-risk names and as market breadth declines, major indexes will remain vulnerable," analysts led by equity strategist Michael Wilson said in the note. "Under the surface, financial markets have taken on a much more defensive posture," the note said. This means that they are observing the initial stages of the stock market crash as investors have started to abandon risky assets. Up until this point, Morgan Stanley has shared a less rosy and more realistic view of the markets compared to other banks. The analysts said they fully expect a market transition to happen, and in the process, several overvalued stocks will face a crash until the end of this year.

It takes just “one extra snowflake to start an avalanche - and boom!,” said the veteran investor, economist, and financial analyst Harry Dent in a recent interview with ThinkAdvisor. Dent said that the epic market bubble is likely to “blow at the end of this month, if not September”. He argued that stocks have no more place in investors’ portfolios, and predicted that most equities will tumble 80% by autumn. “It will be the biggest crash of our lifetime,” he stressed.

In March, he affirmed that “the biggest crash ever” would likely occur by the end of this June and many analysts started disregarding his opinion because that didn't happen. However, Dent has a good point to explain why the crash hasn't occurred just yet: "It’s the same old story," he said. "We’ve been rebounding since [the health crisis] crashed us in March of last year. The stimulus was off the reservation! The central banks said, “We’ll triple down.” But I don’t think the rebound going to last, and the markets don’t think it’s going to last. So the question is: When does it blow?"

And to that question, he presented the forecast that "the end of this month is one of the most likely times, if not September". Dent is amongst the experts who can see that what we are facing is an "everything bubble" that includes stocks, housing, and bonds. One single failure can lead to the simultaneous burst of the three markets, and the analyst is ringing the alarm on the housing market bubble. “Real estate is still bubbling up, but U.S. home sales have gone down 22% or 23% in just a matter of the last five or six months. That’s a sign there’s a limit to the bubble. So that’s the beginning.”

Similarly, the economist who accurately predicted the 2008 financial meltdown is now waving a red flag about another looming disaster. However, this time, things are much worse than they seem. Nouriel Roubini, an economist at NYU Stern School of Business, argues that the next stock market crash will be the catalyst for a crisis of extraordinary proportions that could lead us to a devastating societal collapse.

Roubini added that due to an impending debt crisis, the government will be insolvent, and thus unable to bail out banks, corporations, and households. In other words, no one will come to our rescue. We will be left will a collapsing economy, crashed markets, bankrupt businesses, and feeling the catastrophic impacts of a decaying purchasing power. This means that the coming everything bubble burst might be the beginning of the end. This slow-motion train wreck looks unavoidable. We will soon see the stagflation of the 1970s meet the debt crisis of the post-2008 period and merge into the most devastating economic and financial disaster in history. The question is not if but when."

Musical Interlude: Medwyn Goodall, “Eyes of Heaven”

Full screen recommended.
Medwyn Goodall, “Eyes of Heaven”