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Friday, April 22, 2022

The Chickens are Coming Home to Roost- You Are Witnessing It in Real Time

 This morning, as I do most mornings, I brew coffee and then I read the daily nonsense on sites like ZeroHedge. Then I check the markets. Today, every indicator was red. Indices, oil, gold. Everything was down.

Then I see some ridiculous mainstream article stating that the FED was responsible for the freefall and the end of the stock market business cycle. Like that is something new.

You see I forget. I forget that most people under the age of 45 have never seen a real inflation driven, stock market crash. Oh they saw that 2008 shitshow wherein our bought off leadership rescued crooked banks and bankers, then health insurance companies. Where the Bernank and the FED printed money hand over fist. Where cash holders bought mortgages for pennies on the dollar and have since become greedy slumlords renting shacks for a couple thousand a month.

So those 40 somethings might have seen that. They might even remember what happened.

But what they've never seen is an inflation driven crash. They've never seen 16% mortgages and the DOW Jones below 1000. Zero jobs. 

But I have.

Jimmy Carter might have been a nice man but he was a horrible President. He simply didn't have the leadership skills and bold decision making it took to navigate this country off the rocks of the Vietnam War and the impeachment of President Nixon. 

Biden is an absolute trainwreck of a man.

We have been sold out. Our country's manufacturing was sold out to China by terrible political governance and American corporations that seek cheap labor with few restrictions. We produce bupkis.

Our currency is being destroyed in front of our eyes. 

The FED has little recourse. When you are 31 trillion in debt- raising interest means you have to refinance at least half that 31 trillion debt into higher and higher rates. That of course will mean printing even more money to pay debt holders their interest while an army of IRS agents tries to squeeze every last cent out of the public.

I've been talking about this since 2009. That was 13 years ago. I had no idea that they would continue this insane spending, money printing, and inflation denial episode for so long. But they did.

So how bad can this get? I think it can go from bad to awful. I am worried about supply chain disruptions. So I keep adding to my food and water storage. Also storing fuel and getting a second generator. It's too late to buy ammunition. The stuff is insanely expensive and there are only two manufacturers left in the US.

The other day, I saw a pickup advertised at 95,000. It is the same truck I own which cost 34,000 in 2004. A 200% increase in 18 years- that's about 12% per year annualized on that one item. That's not because the truck is so much more valuable- that's because the dollar is becoming worthless. They've destroyed the dollar supply be diluting it with 13 years of QE and spending. 

It's here. The chickens are coming home to roost. Getting a real sense of how the Romans must have felt as their empire crumbled.

Israel, our big ally, is dumping the dollar.