Your Government At Work
The world breathlessly awaits the new round of money printing & currency debasement easing from Weimar Ben today. Like kids
tucked in their beds awaiting Christmas morning, thoughts of sugarplums dance
collectively in the hearts of most market participants.
It doesn’t matter anymore to the collective crowd that the
entire system of finance as we have known it has ceased to exist; all we are
left with is the “up or down thumb signal from the emperor”. One guy, who
has a track record that couldn’t land him a job as a greeter at Walmart, is
going to decide what the economy needs and just how much it needs it. Markets
used to decide such matters.
Remember, this is the guy who said back in 2008 that
everything was fine regarding the housing market. Somewhere, Stalin is smiling.
What we are left with now is crony capitalism and the prop
desks at JPM and Vampire Squid with more money to ramp stocks higher to make
you feel good. In the real world, a place most Fed members rarely if ever
inhabit, the situation is far, far worse.
My sense is that all that is happening now is a gigantic CYA
exercise, so that when SHTF months from now, everyone can point the finger at
someone else and say it wasn’t my fault.
I’m writing and posting this before the “magical” moment the
world finds out what “The Bernank” has up his sleeve. In a very real sense, in
the long run I don’t think it will matter much. The Fed wants interest rates as
low as it can get them, thinking this is just what the economy needs. These
people are stuck in the 1950’s.
What the economy needs is for Government, at every level, to
get the hell out of the way and let people do what they want; this paradigm
just isn’t programmed into the elites running things. No, I absolutely need for
you to tell me what to do.
So, we wait for the skinny bald guy to tell us which way the
wind is blowing and how he is going to make everything OK. Please, I can't stomach the Q & A session with the fawning financial press after the rate decision. Listening to guys like Steve Liesman makes me want to puke. I don’t know about
you, but as for me, every time these guys lips move they are lying.
Only sure thing I know is that the math doesn’t lie. We are
one day closer to that moment when the entire system collapses from its own
weight. Debt doesn’t grow an economy; productivity grows an economy.
In the government dictionary, productivity is defined as
money that someone makes that we can confiscate and then pass around to our
political pals, who then donate back to us so we can favor those who “see the
light”.
Welcome to the Ponzification of Amerika.
Have a good day everyone.
-vegas
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