PEAK MONETARY STUPIDITY (THIS WILL END SOOO BADLY)
by Andy Hoffman, Miles Franklin The great – and at times, not so great – thing about aging, is that you get to “study” the nuances of humanity over long periods of time. Yes, technology advances make it seem like humanity is “evolving” – with no better example than the futuristic, utopian societies of, where money no longer exists. However,the reality is – as the French say – plus ca change, plus c’est la meme chose. I.e., the more things change, the more they stay the same. Thus, as positive of an impact as technology can have on our lives, the “flip side” is equally negative, in that it “leverages” humanity’s dark side. No, Warren Buffett, we don’t live better than John D. Rockefeller due to the internet – particularly because, care of the same money printing that has made you rich, the cost of living has risen exponentially. And since fiat currency regimes are inherently Ponzi schemes – which must grow larger to survive; let alone, in a world experiencing parabolic population growth, and increasingly scarce resources; the cost of living is about to get A LOT higher. So much so, that it is a mathematical certainty that the “money” underlying the global economy will be dramatically devalued. To that end, most nations have already seen this occur, in spades; whilst for the rest of us, the “frog in a pot” inflation that has plagued our lives for decades is about to boil over into a seething, simmering kettle of monetary hell. When all is said and done, I will look back at the efforts I put in to educate people of these truths with pride – knowing I have done everything possible to help others. As will Miles Franklin, in not only supplying one of the industry’s best – and most prolific – sources of free information, but knowing it took care of its clients when they needed us most. And never will they need us more than now, as the end of history’s largest, most destructive fiat Ponzi scheme – when the “powers that be” are using every manner of economic data and financial market manipulation; coupled with historic propaganda; to “kick the can” the last few feet; in doing so, enriching “the 1%” at the expense of all others. In other words, “peak monetary stupidity” – which, as the superlative form of a scenario that has ended badly in each of the hundreds of instances throughout history it has been attempted, will not just end badly, but sooooo badly.
I mean, you’d think that after three years of being told the economy was “recovering”; three years of promises of monetary policy tightening – including higher interest rates, and an “exit strategy” from the Fed’s gargantuan $4.5 trillion balance sheet; and three years of promised reductions in the national debt, to name a few broken promises; that at some point, the propaganda machine would break down due to ineffectiveness. Unfortunately, this has not been the case – as clearly, the 99% have been so dumbed down, and addicted to printing press funded entitlements; and the 1% so entrenched in efforts to maintain a self-destructive status quo, that the game has continued long past its effective lifespan. Which fortunately for those hedging against said certainty, only strengthens our will to fight to the monetary death (theirs). Conversely, it is unfortunate for the majority of mankind – who will not only suffer the consequences of increasingly draconian governments, but fiat currency collapse without monetary lifejackets. From my standpoint, “peak monetary stupidity” is upon us NOW – and frankly, I don’t expect it to last long; as sometime soon, all facets of “the game” will break down simultaneously – from the propaganda, to the market manipulation, to the money printing. Watching the past two days’ maniacal efforts to cap Precious Metals’ post-NFP rebound, for example; whilst the MSM attempts to justify why the Fed’s actions, and inaction’s, are bullish for stocks and bonds, yet bearish for gold and silver; depicts, in my view, just how close we are to the end game. To wit, yesterday’s Janet Yellen “speech” in Philadelphia – which, in today’s new “peak stupidity” paradigm, was utilized as yet another “tool” to manipulate markets. I mean, how many times can Fed governors speak of their “confidence” in the “recovery,” contrary to essentially all data screaming otherwise? And why on Earth would anyone listen to them, when they have been so miserably wrong, for so incredibly long? I mean, just last month, the FOMC “minutes” supposedly guaranteed a June rate hike (even though the actual FOMC statement couldn’t have been more dovish). So much so, that “markets” supposedly sold gold off $100, despite the fact that even if rates were to be hiked – which I all but screamed would not happen – there is not a shred of historical evidence that this would be “gold bearish.” Let alone, the most recent history. Well here we are, one trading day after the worst NFP report in memory, and we’re to believe the “stock whisperer” herself is going to make everything right, by simply stating the same meaningless platitudes that she, Ben Bernanke, and Alan Greenspan before her have done throughout America’s slow motion train wreck of the past 15 years. I mean, she actually said – one day after the Labor Participation Rate hit a 40-year low, as the Fed’s own labor market conditions index plunged at its fastest pace in seven years – that labor market “slack” was close to being eliminated. Not only that, on the same day that the UK “leave” faction took its largest yet polling lead over the “remain” side, she espoused that “international headwinds were starting to subside.” To that end, I won’t even mention Tawian posting its 16th straight monthly export plunge whilst here speech was being given; or heck, today’s only other material news items; 1) Gallup’s Economic Confidence poll remaining at its post 2008 low of -14; and non-farm productivity plunging, whilst labor costs (employer costs, not employee wages) surged; i.e., stagflation! As I wrote yesterday, the “bass-ackwards” commentary surrounding such monetary mockery is simply astounding, in not only trying to maintain the ridiculous assertion that the Fed knows what it’s doing, but rationalize record high stock and bond valuations – and conversely, record low Precious Metal valuations – with every imaginable propagandistic tool available. Heck, Bitcoin broke out last night to $595, and the Wall Street Journal’s response was that “no one cares,” so it “has no future.”
I mean, is anyone in the media; or on Wall Street (which is also amidst a major earnings recession), still living on this planet? Do they not experience the same exploding healthcare, rent, education, insurance, and now gasoline prices as the rest of us? This, with interest rates at record lows! To the end, do they not see corporations of all kinds deep discounting, closing stores, laying off employees, and slashing salaries, benefits, and even their own investments? Do they not realize that whilst rent prices are at all-time highs, and rates all-time lows, that home ownership is at multi-decade lows? Or that despite the lowest “unemployment rate” in a decade, labor participation is back at mid-70s levels? Along with – care of Fed-fostered inflation, and the loss of our nation’s manufacturing base – the lowest real wages, and median household income, in decades? Do they not realize that the once noble professions of medicine, law, and banking have been decimated by inflation, corruption, and…Obamacare? Or that the “ultimate end game of Communism” is not just overtaking “third world nations,” but the Western world itself? Which is probably why extremist political movements, which by nature promote social and economic instability, are overtaking the planet – including here in the States, where incredibly, Donald Trump is the Presidential front-runner? Thankfully, the “alternative media” is alive and well; such as the Miles Franklin Blog, whose raison d’etre is helping people understand why they need to protect themselves from what’s rapidly approaching. Which is, the unprecedentedly hideous ramifications of peak monetary stupidity; which, in my view, will be an irreversible worldwide phenomenon far sooner than most can imagine.