Thursday, March 11, 2021

The Poet: Arthur O’Shaughnessy, "Music and Moonlight"

"Music and Moonlight"

"We are the music makers,
And we are the dreamers of dreams,
Wandering by lone seabreakers,
And sitting by desolate streams;
World-losers and world-forsakers,
On whom the pale moon gleams:
Yet we are the movers and shakers
Of the world forever, it seems…
We, in the ages lying
In the buried past of the earth,
Built Ninevah with our sighing,
And Babel itself in our mirth;
And o’erthrew them with prophesying
To the old of the new world’s worth;
For each age is a dream that is dying,
Or one that is coming to birth."

- Arthur O’Shaughnessy

"Assumptions..."

 

"So This Is How The U.S. Dollar Dies…"

Full screen recommended.
"So This Is How The U.S. Dollar Dies…"
by Epic Economist

"The U.S. dollar collapse is being triggered by our government's reckless spending, and soon enough the world's reserve currency may literally become worthless paper. The House and the Senate have both just passed a new 1.9 trillion dollar relief bill that it's on its way to the president's desk for his signature. But as we repeatedly stressed in several videos, America does not have 1.9 trillion dollars lying around to be spent in whatever way our leaders decide to do. In fact, we will have to borrow every single dollar in that bill, which means we're now underway to add 1.9 trillion to our already alarming 28 trillion national debt.

Our politicians are convinced that monumental amounts of dollars can be printed, borrowed and spent indefinitely without any consequences. Worse even, they have been trying to sell the narrative that this is the only way to save our economy, and the public is buying it. However, much of that spending isn't directed to support our workers, businesses, and households. Instead, representatives managed to include a long list of projects that are completely unrelated to our current priorities. That is to say, our sovereign currency is being destroyed only to fulfill authorities' delusional and greedy eagerness for spending. That's what we are going to analyze in this video.

Just yesterday, a new relief bill has passed the Senate and the House featuring a 1.9 trillion spending plan that includes a tremendous amount of unnecessary projects and reckless expenses. Our politicians are using the coming stimulus checks as a headline for the fiscal package, but keeping the description of the total spending out of the public's sight. Most Americans are completely unaware that we simply do not need that entire sum to boost the economy and provide support to our workers and businesses. More concerningly, perhaps, is the fact that most people do not understand how that will debase the value of our money and unleash runaway inflation.

As a matter of fact, a recent poll found that 78 percent of our population agrees with that colossal spending, including 90 percent of Democrats and 64 percent of Republicans. As our nation grows more politically divided than ever, it seems that affairs of national importance are becoming a battleground to separate winners and losers. However, the truth is that everybody will ultimately lose. No matter on what side of the partisan divide you're at, it's essential to look past our own preferences and always remember that politicians' priority is politics, not the people.

Although relief is needed to ease the financial burden brought on by the health crisis, 1.9 trillion is a sum that could provide assistance for years and years if properly spent. At this stage, there's no turning back. That's why we should all worry about what these measures are doing to our currency. The dollar collapse is now an indisputable reality. What authorities and policymakers have already done to our currency is certainly nightmarish.

The more money we have on the system, the less intrinsic value every dollar will have. Experts have been warning for a long time that the current monetary policy would not only cause a dramatic dollar collapse, as it would downgrade our living conditions, our individual earning and spending ability, and our capacity of ever reaching a full economic recovery, because pretty much everything, every sector and every industry will enter an overly-inflated bubble and prices will keep reaching sky-highs. And since we're talking about bubbles and soaring prices, we cannot forget the impacts we're about to witness inside the stock market.

Investors have been long-waiting for the passing of this bill, because, in short, it means that another tsunami of money is coming and they will be able to continue expanding the massive and unsustainable stock market bubble. The Wall Street casino is about to get juiced up with another liquidity injection, as at least “37% of Main Street investors” disclosed plans to pour their stimulus money directly into the markets, according to a recent survey. The thing is that the more the stock bubble is inflated with money printed out of thin air, and the rally is fueled by an unrealistic perception of the future of our economy, the sharpest will be the price collapse. And as we've repeatedly warned, we're only one trigger event away from a catastrophic stock market crash.

We are endlessly printing, borrowing, and spending our way into a tragic dollar collapse and a massive debt apocalypse. We're letting our leaders set the stage for our Republic to die while murdering the reserve currency of the entire planet at the same time. None of this will end well, and if you didn't know that before, now you have been warned."

The Daily "Near You?"

Maple Plain, Minnesota, USA. Thanks for stopping by!

Gregory Mannarino, PM 3/11/21: "Crude Rips Higher! Three New Record Highs For Stock Market Indices"

Gregory Mannarino, PM 3/11/21:
"Crude Rips Higher! 
Three New Record Highs For Stock Market Indices"
Related:

"The New American Nightmare"

"The New American Nightmare"
by Doug Casey

"An International Man lives and does business wherever he finds conditions most advantageous, regardless of arbitrary borders. He’s diversified globally, with passports from multiple countries, assets in several jurisdictions, and his residence in yet another. He doesn’t depend absolutely on any country and regards all of them as competitors for his capital and expertise.

Living as an international man has always been an interesting possibility. But few Americans opted for it, since the U.S. used to reward those who settled in and put down roots. In fact, it rewarded them better than any other country in the world, so there was no pressing reason to become an international man.

Things change, however, and being rooted like a plant – at least if you have a choice – is a suboptimal strategy if you wish to not only survive, but prosper. Throughout history, almost every place has at some point become dangerous for those who were stuck there. It may be America’s turn.

For those who can take up the life of an international man, it’s no longer just an interesting lifestyle decision. It has become, at a minimum, an asset saver, and it could be a lifesaver. That said, I understand the hesitation you may feel about taking action; pulling up one’s roots (or at least grafting some of them to a new location) can be almost as traumatic to a man as to a vegetable.

As any intelligent observer surveys the world’s economic and political landscape, he has to be disturbed – even dismayed and a bit frightened – by the gravity and number of problems that mark the horizon. We’re confronted by the consequences of Covid-19, economic depression, looming financial chaos and collapse, serious currency inflation, onerous taxation, crippling regulation, a developing police state, and, worst of all, the prospect of a major war. It seems almost unbelievable that all these things could affect the U.S., which historically has been the land of the free.

How did we get here? An argument can be made that things went bad because of miscalculation, accident, inattention, and the like. Those elements have had a role, but it is minor. Potential catastrophe across the board can’t be the result of happenstance. When things go wrong on a grand scale, it’s not just bad luck or inadvertence. It’s because of serious character flaws in one or many – or even all – of the players.

So is there a root cause of all the problems I’ve cited? If we can find it, it may tell us how we personally can best respond to the problems. In this article, I’m going to argue that the U.S. government, in particular, has been overrun by the wrong kind of person. It’s a trend that’s been in motion for many years but has now reached a point of no return. In other words, a type of moral rot has become so prevalent that it’s institutional in nature. There is not going to be, therefore, any serious change in the direction in which the U.S. is headed until a genuine crisis topples the existing order. Until then, the trend will accelerate.

The reason is that a certain class of people – sociopaths – are now fully in control of major American institutions. Their beliefs and attitudes are insinuated throughout the economic, political, intellectual, and psychological/spiritual fabric of the U.S.

What does this mean to you, as an individual? It depends on your character. Are you the kind of person who supports “my country, right or wrong,” as did most Germans in the 1930s and 1940s? Or the kind who dodges the duty to be a helpmate to murderers? The type of passenger who goes down with the ship? Or the type who puts on his vest and looks for a lifeboat? The type of individual who supports the merchants who offer the fairest deal? Or the type who is gulled by splashy TV commercials?

What the ascendancy of sociopaths means isn’t an academic question. Throughout history, the question has been a matter of life and death. That’s one reason America grew; every American (or any ex-colonial) has forebears who confronted the issue and decided to uproot themselves to go somewhere with better prospects. The losers were those who delayed thinking about the question until the last minute.

I have often described myself, and those I prefer to associate with, as gamma rats. You may recall the ethologist’s characterization of the social interaction of rats as being between a few alpha rats and many beta rats, the alpha rats being dominant and the beta rats submissive. In addition, a small percentage are gamma rats that stake out prime territory and mates, like the alphas, but are not interested in dominating the betas. The people most inclined to leave for the wide world outside and seek fortune elsewhere are typically gamma personalities.

You may be thinking that what happened in places like Nazi Germany, the Soviet Union, Mao’s China, Pol Pot’s Cambodia, and scores of other countries in recent history could not, for some reason, happen in the U.S. Actually, there’s no reason it won’t at this point. All the institutions that made America exceptional – including a belief in capitalism, individualism, self-reliance, and the restraints of the Constitution – are now only historical artifacts.

On the other hand, the distribution of sociopaths is completely uniform across both space and time. Per capita, there were no more evil people in Stalin’s Russia, Hitler’s Germany, Mao’s China, Amin’s Uganda, Ceausescu’s Romania, or Pol Pot’s Cambodia than there are today in the U.S. All you need is favorable conditions for them to bloom, much as mushrooms do after a rainstorm.

Conditions for them in the U.S. are becoming quite favorable. Have you ever wondered where the 50,000 people employed by the TSA to inspect and degrade you came from? Most of them are middle-aged. Did they have jobs before they started doing something that any normal person would consider demeaning? Most did, but they were attracted to – not repelled by – a job where they wear a costume and abuse their fellow citizens all day.

Few of them can imagine that they’re shepherding in a police state as they play their roles in security theater. (A reinforced door on the pilots’ cabin is probably all that’s actually needed, although the most effective solution would be to hold each airline responsible for its own security and for the harm done if it fails to protect passengers and third parties.) But the 50,000 newly employed are exactly the same type of people who joined the Gestapo – eager to help in the project of controlling everyone. Nobody was drafted into the Gestapo.

What’s going on here is an instance of Pareto’s Law. That’s the 80-20 rule that tells us, for example, that 80% of your sales come from 20% of your salesmen or that 20% of the population are responsible for 80% of the crime.

As I see it, 80% of people are basically decent; their basic instincts are to live by the Boy Scout virtues. 20% of people, however, are what you might call potential trouble sources, inclined toward doing the wrong thing when the opportunity presents itself. They might now be shoe clerks, mailmen, or waitresses – they seem perfectly benign in normal times. They play baseball on weekends and pet the family dog. However, given the chance, they will sign up for the Gestapo, the Stasi, the KGB, the TSA, Homeland Security, or whatever. Many seem well intentioned, but are likely to favor force as the solution to any problem.

But it doesn’t end there, because 20% of that 20% are really bad actors. They are drawn to government and other positions where they can work their will on other people and, because they’re enthusiastic about government, they rise to leadership positions. They remake the culture of the organizations they run in their own image. Gradually, non-sociopaths can no longer stand being there. They leave. Soon the whole barrel is full of bad apples. That’s what’s happening today in the U.S.

It’s a pity that Bush, when he was in office, made such a big deal of evil. He discredited the concept. He made Boobus americanus think it only existed in a distant axis, in places like North Korea, Iraq and Iran, which were and still are irrelevant backwaters and arbitrarily chosen enemies. Bush trivialized the concept of evil and made it seem banal because he was such a fool. All the while, real evil, very immediate and powerful, was growing right around him, and he lacked the awareness to see he was fertilizing it by turning the U.S. into a national security state after 9/11.

Now, I believe, it’s out of control. The U.S. is already in a truly major depression and on the edge of financial chaos and a currency meltdown. The sociopaths in government will react by redoubling the pace toward a police state domestically and starting a major war abroad. To me, this is completely predictable. It’s what sociopaths do."
Related:

"Fauci Admits There Is No 'Science' Behind Continued Lockdown"

"Fauci Admits There Is No 'Science' Behind Continued Lockdown"
by Steve Watson via Summit News

"In a rare moment of truth of CNN Wednesday, Anthony Fauci admitted that there is no scientific reason why people who have had the COVID vaccine are still having their freedoms restricted. CNN host John Berman asked Fauci “What’s the science behind not saying it’s safe for people who have been vaccinated – received two doses, to travel?” “When you don’t have the data and you don’t have the actual evidence, you’ve got to make a judgment call,” Fauci replied, declaring that Americans will just have to trust the CDC:

"Fauci, asked “what’s the science” for denying vaccinated Americans a return to travel, can’t explain. “When you don’t have the data and you don’t have the actual evidence, you’ve got to make a judgment call." pic.twitter.com/lftvNzgA6J
- Tom Elliott (@tomselliott) March 10, 2021

As we reported this week, CNN announced that the CDC is graciously allowing vaccinated Americans some ‘limited freedoms’, prompting a huge backlash on social media where people pointed out that the health body doesn’t grant anyone their God given freedoms.

"The CDC does not give or take my freedom."
- Rob M (@Dr_RobM) March 8, 2021

"So, there is no science and the CDC is making a judgement call about how ‘free’ Americans can be. Hmmm. "We need data, and science. First we will see what vaccinated people do in their house, then where they travel, go to a store or a haircut." Sounds like a centrally planned economy of a socialist state. USA IS DEAD."
- Rodrigo (@RodrigoFaria94) March 10, 2021

All this comes as a little-remarked new study from the Centers for Disease Control and Prevention, the very epicenter of the pro-lockdown public health establishment, found the positive effects from mask-wearing were decidedly modest in scale. "Part of the problem for Dr. Fauci," Stanford University Professor of Medicine Jay Bhattacharya said, "is that he is blind to the harms of the lockdown. He seems not to understand that the lockdown creates all kinds of physical problems, psychological problems, harms that I've never seen him talk about."
Related:

"It Doesn't Matter..."

"Biden Delivers a Sucker Punch"

"Biden Delivers a Sucker Punch"
By Bill Bonner

YOUGHAL, IRELAND – "You’ve already heard the news. Yesterday, Congress passed the latest spending lollapalooza… $1.9 trillion of rancid pork…money for working people… money for non-working people…money for cities… money for states…money for Planned Parenthood…money for “socially disadvantaged” farmers (We are puzzled… Does wheat grow less well for a farmer who is not a member of the local country club?)…money for K-12 schools… colleges… digital media companies (Why would they need money from the government?)…money for federal workers on leave… money for childcare and school lunches… for pregnant and postpartum women…for Amtrak and “communities under economic distress”…for testing animals for COVID-19…for foreign affairs…for science… for space! Wait… What’s all this got to do with COVID-19 relief?

No Sunset: Oh, don’t be silly, Dear Reader. Most likely, not a single life will be saved as a result of this boondoggle. Nor does it really redress the harm done by government busybodies, when they created a panic and shut down the economy.

GDP fell about 2.3% last year. That’s about $498 billion. Last year’s “relief” measures have already offset that with $3.1 trillion. This latest “relief” package brings the total “stimulus” handed out by the feds in response to the coronavirus pandemic to $5 trillion – more than 10 times the actual economic loss. And according to the Committee for a Responsible Federal Budget (CRFB), many of these provisions in the latest “stimulus” package have sunset clauses… meaning they are scheduled to expire sometime in the future. That is how the total cost – as grand as it is – stays under $2 trillion.

But what will most likely happen is that as the sun begins to set, the politicians will agree to extend the programs. In the end, says the CRFB, the cost will probably end up closer to $4 trillion than to $2 trillion.

Pointless and Absurd: So what gives? Why bankrupt the nation? Here’s Joe Biden’s explanation: "This legislation is about giving the backbone of this nation – the essential workers, the working people who built this country, the people who keep this country going – a fighting chance."

What a strange thing to say. Every penny the feds give away must come from the taxpayers… one way or another, sooner or later. Even when they print up fungible tokens, representing dollars that haven’t even been earned yet… perhaps by people who have not even been born yet… all the wealth that those dollars claim must be produced by the taxpayers; there’s no other source.

And if they give to the backbone, they must take from somewhere else – the leg bone… or the skull. It is like a blood transfusion from the left arm to the right one – pointless and absurd – leaving the patient weaker than ever. And if they give money to the people who “keep this country going,” that is, to the truckers, the butchers, the ad men, the poets, and the chicken farmers – whose sweat and toil provides the products and services that keep the country housed, fed, clothed, and entertained – from whom will they take it? From people who don’t work?

Left alone, the taxpayer, present or future, spends his money as he pleases. How does taking it away from him in order to hand it over to people who neither need it, earn it, nor have any right to it make him better off? It is as if some magic happened… that this money – passing through the hands of the parasitic class of lobbyists, connivers, cronies, special interests, and the Deep State – is blessed, like holy water, so that it now gives the people from whom it is taken away a “fighting chance.”

No Fighting Chance: But this is La Bubble Epoch. Things don’t have to make sense. They don’t even have to add up. Logical thought is a faux pas. Common sense is a hindrance. Experience, wisdom, and real skill are just part of the burden of patriarchy, to be shucked off and hidden away, like a Confederate monument, as soon as possible.

Yes, the entire nation has taken off its thinking cap and suspended its disbelief… so that even the most unlikely, mysterious, or miraculous thing will be greeted with a straight face… and treated as though it were a proven, scientific fact. For who doesn’t believe that more money from the feds will produce a boom? The Organization for Economic Cooperation and Development (OECD) says world growth is headed for 5.6% this year. Goldman Sachs is calling for 6.8% GDP growth in the U.S. in 2021.

For surely, with so much new liquidity sloshing about, there is bound to be an increase in spending. And gambling. And wild-eyed weirdness. Sure, consumer prices will rise. But that will be a good thing, no? Like giving the common man a pair of brass knuckles, no? At least, that’s what the pundits and sell-side philosophers will say. It will be a sign… that Joe Biden’s big spend-a-thon was paying off.

For surely then, the economy will “take off”… and we will all enjoy a “temporary prosperity”… before the “permanent ruin” settles in. Then, we will see that the fight was rigged all along… and that Joe Biden gave the working man not a “fighting chance.”

Savior of the Empire: Whatever happens, Joe Biden must be gambling that history will fumble… and give him credit, not for knocking out the poor working stiff with his reckless gamble, but for having been in his corner… helping him, encouraging him with a fantasy so obviously numbskull that it wouldn’t fool a six-year-old. And he’s probably right. We’re all on the internet now… and so well informed are we, that we’re ready to believe anything. And when the history books are written, we may find Biden revered – like that other big humbug, Franklin Roosevelt – as a great hero.

And maybe, sitting around campfires many generations from now (the technique of central heating having disappeared when the great economic/financial/social bubble of the 21st century blew up), people will sing rousing ballads about how Joe Biden brought the country out of its post-COVID funk with his bold programs.

They’ll recall how he scored his first success with his $1.9 trillion everything bailout… and was emboldened to go even bigger… with trillions more for a great infrastructure program (perhaps they will look around at unfinished highways… or the rusty tracks of a high-speed railway that never saw a locomotive…) “He had the courage to act,” they will chant (forgetting that former Federal Reserve Chief Ben Bernanke had a copyright on the phrase).

Sucker Punch: Yes, Joe Biden continues in that heroic tradition… George W. Bush… Barack Obama… Donald J. Trump…all with the same basic, empire-destroying formula – make war abroad… spend money at home… bomb and print, murder and fraud…each administration taking it further and further…until finally, the poor working man is flat on his back. Then, we see more clearly that the fight was rigged… and he never had a chance…and that, in 2021, Joe Biden delivered the sucker punch."

Musical Interlude: Talking Heads, "Road To Nowhere"

 

Talking Heads, "Road To Nowhere"

"All this had happened before, perhaps a million times, and because of this was doomed. There was no ordinary future any more, only this ecstatic tormented terrified present. The future had passed through the present like a sword. We were already, even eye to eye and lip to lip, deep in the horrors to come."
 - Iris Murdoch, "The Black Prince"

"How It Really Is"

 

Absolute Must View! "Shot in the Dark: Medical Doctor Exposes Deadly Dangers of Covid-19 Vaccines"

"Shot in the Dark: 
Medical Doctor Exposes Deadly Dangers of Covid-19 Vaccines"
Related:

Gregory Mannarino, AM 3/11/21: "Economy In Free-fall Collapse; Stock Market New Record Highs"

Gregory Mannarino, AM 3/11/21:
"Economy In Free-fall Collapse; Stock Market New Record Highs"

"The 'Wait and See' Economy's Moment of Truth"

"The 'Wait and See' Economy's Moment of Truth"
by Charles Hugh Smith

"The defining phrase of the U.S. economy for the past year is "wait and see": every enterprise impacted by the pandemic that didn't close immediately has been in "wait and see" mode, clinging on to the hope that once the pandemic ends then everything will roar back to life, bigger and better than before.

With the promise of herd immunity fast approaching, the moment of truth for "wait and see" is also fast approaching. The conventional view is that the trillions of dollars in stimulus kept business as usual alive and ready to soar back to the good old days. The almost $2 trillion injection of financial smack currently in progress will ignite the afterburners and the economy will rocket higher than anyone can imagine.

The problem with this rosy view is the economy was on fumes before the pandemic, as Gordon Long and I highlighted in our 53-minute presentation, "The Coming Deflationary Tsunami", below. Interest rates had been falling for 40 years and there was little leeway for more of the magic of falling rates. The spending of the upper middle class had already rolled over as the awareness that the longest expansion in U.S. history was faltering seeped into financial decisions--and no wonder, since every trick in the book had been required to keep it alive: zero interest rates, quantitative easing galore, tax cuts, massive deficit spending and speculative bubbles in every asset class.

Then there was the spot of bother in the repo markets. Something had broken in the financial plumbing (a massive break in the sewers?) and the Federal Reserve rushed freshly printed billions to stop the sewage from seeping into the precarious economy. Though nobody dared discuss it, the economy was creaking under the burden of overcapacity in just about everything: too many cafes, too many channels of this and that, too many office towers built for get-rich-quick techies planning to sell out to Big Tech and retire at 25, too many resorts, and so on.

One driver of the overcapacity was the rise of Zombie Corporations - companies that only remain among the living if they can borrow ever more money at lower rates to fill the holes in their balance sheets and cash flow. The Fed's implicit goal was to never let a single Zombie die because that might send the wrong signal, i.e. that creative destruction was allowed. Creative destruction is no longer allowed by the Fed, never ever ever. So the economic landscape is cluttered with Fed zombies.

Also ignored was the inconvenient fact that wages for the bottom 95% have stagnated for decades and so where was all this money being blown coming from? From debt, of course, and the phantom wealth generated by speculative bubbles.

Then there are the demographic headwinds illuminated by Chris Hamilton, most recently in "The Narrative Of Inflation Amid Depopulation." The working-age population has leveled off, along with the expansion of employment, while the number of those with claims on future earnings - the elderly and those "permanently out of the workforce" - are rising.

As Chris points out, speculative asset bubbles are just peachy for those who already own the assets - the top 10% who own close to 90% of financial assets - but of little value to the bottom 90% who get a pathetic 3% of all capital income. Those greatly enriched by the Fed's bubble-blowing are mostly older, those who can't afford homes and other inflated assets are mostly younger, burdened with stagnant wages, student loan debts and an economy that's rigged to favor the few at the expense of the many.

A great many young people are delaying or foregoing marriage and having children because they don't have the means and security do so. So who's going to be paying all the taxes needed to fund the enormous retirement and healthcare costs of 70 million retirees? No problem, we'll just borrow another couple trillion a year forever. (Free fish for everyone forever!)

Nice, but the rest of the world has opted out of buying into our funny-money fantasies. So the Fed will have to buy all the trillions in bonds being issued, and that unleashes second-order effects that have the potential to go non-linear, i.e. actually have negative consequences in the real world.

Then there's the private changes in behaviors and risk assessment that add up to tidal changes in the economy. People are reassessing their exposure to risk, and letting go of activities and expenses they once took for granted. Maybe the $300 trips to the ballpark are no longer worth it; maybe the costs of eating out are recognized as unaffordable. The majority of residents in over-touristed locales no longer want tourism at the same scale. Residents discovered that once the tourists were gone, life was good, even if the tourist-dependent businesses closed and unemployment rose.

Everyone is holding their breath waiting to surface, but many of the enterprises that have clung on in "wait and see" mode will find that things have changed, and time cannot be reversed to summer 2019. All those holding defaulted loans based on a full return to summer 2019 are also holding their breath, hoping that the back rent will be paid in full, the overdue mortgages paid in full, and so on.

The reality is overcapacity, over-indebtedness and stagnant earnings are all deflationary. The "wait and see" economy is about to face its moment of truth, and one truth is the $1.9 trillion being passed out like candy is already spent - as is the economy and the Fed's bag of tricks."
Gordon T. Long, 
"Coming Deflationary Tsunami - w/ Charles Hugh Smith"
Related:

Greg Hunter, "As Rates Spike Bubbles Pop - Michael Pento"

"As Rates Spike Bubbles Pop"
By Greg Hunter’s USAWatchdog.com

"Money manager and economist Michael Pento warns the era of super low Fed manipulated interest rates is coming to an end. This is big trouble to the bond market and the overall economy. Pento explains, “I think what’s happening now is about 35 years of government manipulation of markets is about to end. The faith that we have in our government and the faith that we have in our central banks is coming to an end. As evidence of that, the 7-year note auction was the worst auction in U.S. history. It just goes to show you the faith in our bond market is eroding.”

Now, we are facing multiple bubbles as opposed to just the sub-prime crisis in 2007-2008. Pento points out, “So, we have another bubble in real estate, but back in 2007, all we had was a bubble in real estate. We really didn’t have a massive bubble in the stock market. The total market cap to GDP was only 100% back in 2007. Now, it’s 191% of GDP, and, of course, you have a massive bubble in the bond market. You have $15 trillion in negative yielding sovereign debt and a U.S. Treasury at .3% in March of 2020. So, we have a triumvirate of bubbles that are all held together by this artificially low interest rate. Here’s the catch 22... We are sending more checks to people, $1,400 checks in Biden’s Covid relief package. So, we are monetizing debt. We are creating inflation. If you continue to print money, borrow money and monetize that debt, inflation is going to wax higher and higher. You are going to blow up the bond market. If you blow up the bond market, you will blow up high yield, you will blow up credit, you will blow up the real estate market and then the stock market. If they stop, the only buyer of U.S. Treasury bonds is the Federal Reserve. If they lose the bid of the Fed and it stops printing money and buying, rates spike, and then you see a massive deflationary bubble from a massive fiscal and monetary cliff. It’s game over either way, and that’s where we are now. If you keep printing and keep manipulating markets, you have a bond market crisis. Stop printing, you have a deflationary crash of asset prices. That’s it, that’s where we are headed.”

When is this going to come undone? Pento predicts later this year and points to the third or fourth quarter of 2021. Pento says, “This is a very fragile economy. When you see the credit market freeze and these zombie companies can’t issue new debt, and borrowing costs go into double digits and companies start closing the doors and laying off people and you get a massive depression that follows, what is going to be the solution from the central banks? The Fed can’t lower interest rates. They can only increase QE (money printing). How do you bail out an inflationary crisis in the bond market by creating more inflation? That’s the problem.”

Join Greg Hunter on Rumble as he goes One-on-One 
with economist and money manager Michael Pento.

Wednesday, March 10, 2021

"All At Once..."

"All at once I feel desperate, outraged. Why am I alone doomed to spend nights of torment, with an unseen jailer, when all the rest of the world sleeps peacefully? By what laws have I been tried and condemned, without my knowledge, and to such a heavy sentence, too, when I do not even know of what or by whom I have been indicted? A wild impulse comes to me to protest, to demand a hearing, to refuse to submit any longer to such injustice. But to whom can one appeal when one does not even know where to find the judge? How can one ever hope to prove ones innocence when there is no means of knowing of what one has been accused? No, there's no justice for people like us in the world: all that we can do is to suffer as bravely as possible and put our oppressors to shame."
-   Anna Kavan, "Asylum Piece"

"Commercial Real Estate Collapse Heading To Catastrophic Bankruptcies And Foreclosures"

Full screen recommended.
"Commercial Real Estate Collapse Heading To 
Catastrophic Bankruptcies And Foreclosures"
by Epic Economist

"The commercial real estate collapse has pushed countless retail chains over the edge throughout the past few years, but ever since the health crisis struck, we have seen big retailers that once seemed too big to fail going bankrupt and shutting down their entire operations overnight. Last year, we witnessed the closure of thousands of retail stores all across the country, and the trend is expected to continue in 2021, as several iconic brands already announced they will be closing hundreds of stores just on the first quarter, with many more to come as consumers are increasingly turning to online shopping.

The reopening scheduled to happen later this year will finally allow us to see how the devastating effects of the recession have emptied out our economic landscape, and the gap created by so many closures is putting the existence of shopping malls at risk According to experts, 25% of all U.S. shopping malls are forecasted to disappear until 2022, adding extra pressure to the commercial real estate collapse and possibly contributing to trigger another massive wave of lay-offs. That's what we are going to investigate in this video.

As e-commerce has been significantly rising, brick-and-mortar retail stores were being wiped out by the thousands every year, particularly those belonging to huge retail chains like Sears and J.C. Penney. Before the health crisis exploded in America, the widespread decay of the retail sector had been prompted by a variety of different factors, including market saturation and the shrinking of the middle class, as our living conditions have considerably deteriorated over the last decade.

Sadly, according to newly available data, as numerous retailers have experienced unrecoverable losses, many of our most beloved iconic brands are likely to fall victim to the retail apocalypse in the coming months. The findings outline that the health crisis might have been the final nail in the coffin of several brands that have been struggling in recent years.

Now, the future of these brands remains uncertain, and it is very unlikely they will ever come back to "normal". The rise of Amazon and other online retailers has pushed brick-and-mortar stores to the brink well before we ever imagined America would face a dramatic economic collapse triggered by a global sanitary emergency. But while it’s indisputable that retail stores were facing challenges for a long time, the impacts of the outbreak cannot be understated.

Measures introduced to supposedly control the spread of the virus, including nationwide lockdowns, accelerated the downfall of many of these companies. Some chains decided to close a portion of their stores to avoid further losses, while others faced a much more brutal fate and were forced to shut down completely or file for bankruptcy. In fact, a recent report from Coresight Research warned that things are bound to get worse as approximately 25,000 stores could be closing permanently as a result of the current recession, and at least 15,000 brick-and-mortar stores could disappear by the end of 2021.

The truth is that the retail apocalypse is leading mall operators to face a reckoning. Many Green Street analysts are highlighting that level of disruption experienced recently was expected to occur over five to 10 years instead of taking place over just two. According to Moody's commercial real estate, in 2020, the national retail vacancy rate increased to 10.5% in the fourth quarter, the highest since 2013, while the mall vacancy rate went up from 0.4% to 10.5%, the highest in decades. Right now, there's "trouble brewing" even at upper-tier malls that once seemed invulnerable to the problems of lower-tier ones.

As a matter of fact, the investment banking company Credit Suisse predicted 25% of all malls in America would be closed by 2022. That's why many experts have been worried the domino effect triggered by store closings and bankruptcies will not only worsen the commercial real estate crisis, as it will also decimate hundreds of thousands of jobs over the two coming years. With almost half of all mall-based department stores expected to close in 2021, at least 1,5 million jobs are on the line, which means the scenario won't only be apocalyptic to retailers but to a large chunk of the U.S. workforce. A massive wave of retail and mall-related lay-offs could potentially take place over the course of 2021. And the impacts of it will send us further away from a recovery than ever before. Darker days are still on the horizon as the widespread collapse of America has just begun."

“Stimulus Crumbs Are A Joke; America Is Producing Massive Debt; Bubbles Are Overheating; Inequality”

Jeremiah Babe,
“Stimulus Crumbs Are A Joke; America Is Producing Massive Debt; 
Bubbles Are Overheating; Inequality”

"The Government’s Greatest Con Job"

"The Government’s Greatest Con Job"
by Brian Maher

"Dollar: a paper money, silver or cupronickel coin, and monetary unit of the United States, equal to 100 cents. So runs the dictionary definition. But if one dollar equals 100 cents… what then is a cent? The answer is one-hundredth of one dollar. And what again is one dollar? 100 cents. And so we begin an infinite chasing of the tail - one dollar is 100 times one cent, one cent is one dollar divided by 100.

Trillions upon trillions of dollars are rolling from the presses. Many more will follow. We should understand what in fact they are. We seek clarity. We must therefore turn to the Coinage Act of 1792: "The money of account of the United States shall be expressed in dollars or units… of the value [mass or weight] of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure… silver." That is, the dollar was defined by weight - some 371 grains of pure silver - or 0.7734375 of one ounce.

The Coinage Act of 1792 further authorized the production of $10 gold Eagles - “each to be of the value of ten dollars or units and to contain two hundred and forty-seven grains, and four eighths of a grain of pure… gold." One ounce of gold equaled roughly 15 ounces of silver. The Gold Standard Act of 1900 later defined the dollar as “twenty-five and eight-tenths grains of gold nine-tenths fine” - or 0.05375 troy ounces.

Here is the central lesson: Defined in silver, defined in gold… the dollar was nonetheless defined by weight. Today the dollar is defined in cents — cents themselves defined by the dollar. A delirium of confusion surrounds it. In today’s reckoning, we track the evolution of a mighty swindle...

Good as Gold: We begin with this $10 banknote, dated 1928:
The 1928 $10 note bears this inscription: “Redeemable in gold on demand at the United States Treasury, or in gold or lawful money at any Federal Reserve Bank.” In those antique days, a fellow could march into a bank. He could hand the clerk a slip of paper, as illustrated above... And he could demand the denominated amount in gold coin - payable on the nail.

The system imposed a reasonable discipline upon banks… and held inflation in checkmate. Federal Reserve banks were required to keep a 35% reserve of “gold or lawful money" on hand, lest they make a liar of the United States Treasury secretary - in this case, the Hon. Andrew William Mellon. In effect, the private citizen locked the banking system behind golden bars.

Sorry, No Gold: But one Great Depression, one New Deal and one world war later… we come now to a $10 banknote, dated 1950:
In appearance, it is nearly a perfect twin to the 1928 model — with one infinitely telling exception. Can you sniff it out? Recall, the 1928 note claims it is: “Redeemable in gold on demand at the United States Treasury, or in gold or lawful money at any Federal Reserve Bank.”

But here reads the 1950 version: “This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve Bank.” The fine print disguises a vast mischief: The gold provision was stricken from the record. The bankers had broken free from their golden prison… and no longer could a private citizen bring them to honest account. But what about “lawful money”? What is it?

‘I Want My Lawful Money’: In 1947, a certain gentleman - A.F. Davis by name - dispatched the following note to the United States Treasury, accompanied by a $10 note: "I am sending you herewith via registered mail one $10 Federal Reserve note. On this note is inscribed the following: "This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve bank." In accordance with this statement, will you send me $10.00 in lawful money?"

The acting treasurer, M.E. Slindee, responded after this fashion:

"Dear Mr. Davis,

Receipt is acknowledged of your letter of Dec. 9 with enclosure of one ten-dollar ($10.) Federal Reserve note. In compliance with your request, two five-dollar United States notes are transmitted herewith."

And so, Mr. Slindee began chasing his tail - what the philosophical men call circular reasoning.

The Government Gives Up: In exchange for his $10 note, Mr. Davis received by mail two $5 bills bearing the same pledge to redeem in lawful money. But this Davis fellow would not be so easily shooed off. He returned one of the $5 bills, once again demanding lawful money in exchange.

Finally, Mr. Slindee threw up the sponge:

"Dear Mr. Davis:

"You are advised that the term "lawful money" has not been defined in federal legislation. It first came to use prior to 1933 when some United States currency was not legal tender but could be held by national banking associations as lawful money reserves.

Since the act of May 12, 1933, as amended by the Joint Resolution of June 5, 1933, makes all coins and currency of the United States legal tender and the Joint Resolution of Aug. 27, 1935, provides for the exchange of United States coin or currency for other types of such coin or currency, the term "lawful money" no longer has such special significance. The $5 United States note received with your letter of Dec. 23 is returned herewith."

In 1963, all promises to redeem notes in lawful money were stricken from United States currency.

The Evolution of a Swindle: Here, in graphic detail, the devolution of American money:
A Modest Defense of Paper Money: Say what you will of paper money. But in one sense, it is redeemable - if you’ll forgive the expression in the present context. Like gold and silver, paper money files a claim upon Earth’s resources. It is woven from cotton and fashioned into linen. A paper dollar is tangible. A fellow can hold it in his hand, in his wallet, in his mattress. It cannot be erased at the stroke of a key. The paper dollar is also anonymous. Once out of your hands, it washes its hands of you.

None of these happy virtues apply to digital money… If paper money invites abuse... what about digital money?

Bound to Get Into Trouble: Digital money removes all natural checks on monetary production. It has no tangible existence. It is limited only by the discretion of men. Wispy as fog, slippery as oil, it is conjured into existence… as if by the magician’s wand. Digital money is therefore the type of money bound to get itself into trouble. And it gets around the world at electronic speeds.

It is the ideal money for a government swollen to ghastly dimensions - its issue being unlimited in theory. Digital money can also disappear at a keystroke. The bank can freeze you out of it. Every transaction goes on your permanent record. And if the electricity is out, if the power grid is ungridded, how do you purchase your essentials with digital money?

Paper money can see you through. Thus we raise a half-throated defense of paper money today... We cannot transact in lawful money as originally defined by statute - gold and silver. In its absence, we will settle for paper money. That is, a money we can at least keep our hands on… and our eyes on..."
Related:

Musical Interlude: Liquid Mind, "I Am Willing"

Liquid Mind, "I Am Willing"
Beautiful playlist follows.

"A Look to the Heavens"

“This colorful skyscape features the dusty, reddish glow of Sharpless catalog emission region Sh2-155, the Cave Nebula. About 2,400 light-years away, the scene lies along the plane of our Milky Way Galaxy toward the royal northern constellation of Cepheus.  

Astronomical explorations of the region reveal that it has formed at the boundary of the massive Cepheus B molecular cloud and the hot, young, blue stars of the Cepheus OB 3 association. The bright rim of ionized hydrogen gas is energized by the radiation from the hot stars, dominated by the bright blue O-type star above picture center. Radiation driven ionization fronts are likely triggering collapsing cores and new star formation within. Appropriately sized for a stellar nursery, the cosmic cave is over 10 light-years across.”

Chet Raymo, “Trying To Be Good”

“Trying To Be Good”
by Chet Raymo

“A few lines from Mary Oliver's poem "Wild Geese":

    "You do not have to be good.
    You do not have to walk on your knees
    for a hundred miles through the desert, repenting.
    You only have to let the soft animal of your body
    love what it loves."

"I've quoted these lines before, if not here, then elsewhere. When I first read them back in the late 80s, they resonated with what I felt at the time. I had spent part of my earliest adulthood walking on my knees, both literally and metaphorically, seeking to tame what I took to be the animal within. Saint Augustine was whispering in my ear, and Bernanos' gloomy country priest walked at my side. I was ready to follow Thomas Merton into the desert; indeed, I once took myself briefly to the monastery at Gethsemane, Kentucky, where Merton was in residence. That was a journey of more than a hundred miles, and I was busy repenting, although of what I don't know.

As I read those lines from Mary Oliver in middle age, I had long been cultivating the "soft animal" within, immersing myself in the is-ness of things, the flesh and blood, the gorgeously sensual. No more walking on my knees, repenting. I walked proudly upright, with my sketchbook and my watercolors, my binoculars and my magnifier, sniffing the world like an animal on the prowl. I was letting my body learn to "love what it loves." Those were the years I wrote "The Soul of the Night" and "Honey From Stone" - the most intensely creative years of my life. The world offered itself to my imagination, if I may borrow another line from "Wild Geese."

And now, another half-lifetime has passed. The soft animal dozes, the body seeks repose. And I think of the first line quoted above: "You do not have to be good." What could the poet have possibly meant by that? Of course one has to be good. In a cell at Gethsemane or on the bridge over Queset Brook, one has to be good. And so one tries, one tries. The soft animal of the body that nature has contrived for us is not fine-tuned for goodness.”
“Wild Geese”

"You do not have to be good.
You do not have to walk on your knees
for a hundred miles through the desert repenting.
You only have to let the soft animal of your body
love what it loves.
Tell me about despair, yours, and I will tell you mine.
Meanwhile the world goes on.
Meanwhile the sun and the clear pebbles of the rain
are moving across the landscapes,
over the prairies and the deep trees,
the mountains and the rivers.
Meanwhile the wild geese, high in the clean blue air,
are heading home again.
Whoever you are, no matter how lonely,
the world offers itself to your imagination,
calls to you like the wild geese, harsh and exciting
over and over announcing your place
in the family of things."

- Mary Oliver

"The Only Absolute..."

"Never perceive anything as being inevitable or predestined.
The only absolute is uncertainty."
- Lionel Suggs

"Humans may crave absolute certainty; they may aspire to it; they may pretend, as partisans of certain religions do, to have attained it. But the history of science- by far the most successful claim to knowledge accessible to humans- teaches that the most we can hope for is successive improvement in our understanding, learning from our mistakes, an asymptotic approach to the Universe, but with the proviso that absolute certainty will always elude us."
- Carl Sagan

Gregory Mannarino, Post-market 3/10/21: "And I Wonder Who Bought All The Debt Today? Guesses?"

Gregory Mannarino, Post-market 3/10/21:
"And I Wonder Who Bought All The Debt Today? Guesses?"

Gerald Celente, Trends Journal: "The Wizard of Covid, Who is Behind the Curtain?"

Gerald Celente, Trends Journal: 
"The Wizard of Covid, Who is Behind the Curtain?"
"The Trends Journal is a weekly magazine analyzing global current events forming future trends. Our mission is to present Facts and Truth over hype and propaganda to help subscribers prepare for What’s Next in the increasingly turbulent times ahead."

The Daily "Near You?"

Hoschton, Georgia, USA. Thanks for stopping by!

"It Takes Courage..."

"Failure is unimportant.
It takes courage to make a fool of yourself."
- Charlie Chaplin

"To Wall Street, the Greatest Money Laundering Operation and Generator of False Wealth Ever Conceived"

"To Wall Street, the Greatest Money Laundering 
Operation and Generator of False Wealth Ever Conceived"
By Chris Black

"The people who are in the know get a front row seat to the biggest train wreck of all time. It takes around 1-2 years for the initial effects of an event to truly show up in the economy. Right now you are beginning to see the real effects of shutting down the entire country one year ago.

Businesses are going to go bankrupt in numbers never seen before in history over the next year. It doesn’t matter if everything opens up, the supply chain was destroyed, the core of small business America is gone, and the only source for income is now the government. Entire cities are now boarded up with nothing left of commerce.

The things that drove people to the city, like shopping, and restaurants, are still shut down. You went to those things after you sought entertainment. Without the entertainment venues, everything else fails. How is anything outside Fenway going to survive when only 2000 people are allowed to go to a Red Sox game? How is the stadium going to survive? 5000 people at a Patriots game? The team doesn’t survive.

Cleveland Ohio is now a ghost town. The current situation makes the dark times of the 1970s look like the roaring twenties.

People thought 1929 was crazy and it could never happen again. It took 70 years but it happened.

1999 was insane and everyone knew it. But Wall Street was given a huge bailout and financial deregulation allowed a new massive bubble to form.

They called 2008-09 a financial crisis. Compared to what has happened over the last decade, it was nothing. Now every other bubble in history, including the South Seas and Tulip mania look like tiny blips.

Apple has fallen below $2 trillion, wiping out the entire valuation of the company prior to 2018.

That is how insane this bubble is. A company can have its total market cap after nearly 40 years of being a publicly traded company wiped out 100%, AND STILL BE WORTH $1.9 TRILLION!!!!! If Apple drops back to $1 trillion in market value, it would be the greatest crash of market valuation in history, and still leave the company worth nearly double what it was three years ago.

Global Macro is clearly filled with idiots.

The incomes of millions of workers have been permanently destroyed. The businesses aren’t coming back. What will be opened will be opened with diminished capacity. The supply chains are ruined and costs have skyrocketed. The only things that came through unscathed were the massive megacap companies that have been destroying the sustainable economy for decades.

Inflation is running at rates not seen since the 1970s and incomes are dropping. The things left alive have increased prices 25% since September. Restaurant meals that were $12 are now $17, you can’t even feed three people at Applebee’s for under $50. The entire leisure and hospitality industry is decimated and Covid regulations won’t be going away for a long time. This will keep a lid on the recovery in this sector.

The United States is dead. China is the new king of the world.

GDP is simply a measure of the transfer of money, not real economic activity. Sending a couple hundred billion to Israel, so that Israel can send it back to their agents around the world to buy up property and businesses doesn’t grow anything. It just concentrates power. But those transfers count as growth in GDP.

The vast majority of Americans do not care about stocks, even less care about crypto. The Wall Street Bets crowd is going to learn the hard way about what happens when the SEC and the IRS get involved.

If you actually made money and pay taxes, the “stimulus” is just a forward payment of a tax credit. Those who normally expect to get $2000-3000 back at tax time are in for a rude surprise. If you thought you were getting an extra couple thousand dollars, you’re wrong. You just got your refund early.

The wealthy don’t care about $1400, but they’ll claim that the stimulus is great for stocks, because if stocks go up 1%, they will make a lot more than $1400 on their holdings. The stimulus was really nothing but a gift to those of our society that live off government hand-outs. Because they pay no taxes, they just get to keep the cash. The “thank you” note for voting more big government I guess…"

"The Marauders Are Coming...In A Month!"

"The Marauders Are Coming...In A Month!"
by Pinball Preparedness

"The rent/mortgage moratorium ends on March 31st. Up to 20 million people are gonna be homeless on April 1st. This is WORSE than the great Depression. What are you gonna do when they come to your door for help…hundreds of them?"

"How It Really Is"