Things Fall Apart

“Things fall apart; the center cannot hold.” –W.B. Yeats

Here’s the headline: “The US is suffering the fastest deterioration in operating conditions for over 11 years.”

The economy is turning down even faster than anytime during the Great Recession.   

How could it not?  Is anyone surprised that with restaurants and gyms, barber and beauty shops, and so-called non-essential businesses shuttered, while doctors can’t treat their patients or perform elective surgeries, and dentists are furloughing their staffs, and schools and travel mostly shut down, and movie theaters and ball parks are closed…

… that 26 million people have filed for unemployment in the last five weeks?

The chief economist for one of the big bank holding companies just observed that “it would take a miracle to keep this from turning into the Great Depression II.”

But there will be no miracles.  The politicians and PhDs running policy are the exact same one who had the country $24 trillion in debt and the Federal Reserve holding trillions in assets it paid for by monetary fraud to begin with.  Before the coronavirus shutdown.

Oh, it was legal monetary fraud, but it was fraud nonetheless.  Why do you think the Fed so strenuously hides what it is doing?  Why do you think it is terrified of being audited?

So, the ones who sold us the map that marched us into this swamp are being hired as guides to march us out.  

So they come up with more spending.  And more money printing.

Sure, more debt will make us economically stronger.  And more legal counterfeiting will make America more resilient.

And here’s how deep the problem runs:  The governing classes are almost unanimous about these “remedies.”  

Having never gotten anything right yet, they are sure… absolutely sure… that ruining the dollar and burying the people in more debt is the exact right thing to do.

As Yeats said,” The best lack all conviction, while the worst are full of passionate intensity.”

So, here’s a quick update.  Today, as I write this, the national debt is $24.609 trillion.  

That’s up $1. 308 trillion just since January 1.  

In the same days, the Fed has purchased an additional $2.4 trillion of debt instruments including junk bonds  with money it just made up!

How could gold not keep marching higher?