I'm gonna do my best to explain what's going on here on earth, and then after this post, I really mean it this time, no more finance posts. There's a lot more interesting stuff going on out there which I can't wait to write about. I do thank you so much for spending time here and in my gratitude, I do feel an obligation to explain this one more time and then let it all go.
So as my final reportage, here you go:
After 25+ years of misfeasance, easy money at the Fed, we're broke, and going broker, we are fighting two illegal/ immoral wars, on our way to a third.
Peace Prize!
So, we had absolutely no money last year when the Banks blew up due to the incompetence ethos, survival of the slimiest, etc. But the oligarchy needed to get paid, so we had the bailouts when said banks indicated it would be the end of world if they could not pay bonuses.
It was!! Only good call they made in 20 years.
Yes, so not only are we run by corporations, but by failed corporations -from Mr. Obama on down.
Sigh... He has not made any difference despite my false hopes.
This is NOT Capitalism despite Michael Moore's wishes. This is not Socialism nor Communism either. Those models would imply we are redistributing wealth from rich to poor.
It's the opposite here. This is straight up banana republic.
Okay you get it already, no money here, bananaland, our balance sheet has trillions in debt we simply, arithmetically cannot pay.
So we will print it. We will create it out of paper and ink. That was okay way back when we had something of worth backing it, like gold.
And it was still good for a while after that when we were a production-based, non-consumer-based nation, as it was backed by the full faith and credit of the taxing power of the US Congress.
That used to mean something. Now it does not. So the printing to pay debts, coupled with the lack of real demand for said dollars will only lead to one outcome:
Hyperinflation and the likely dissolution (or major restructuring) of the United States.
Look at the stock markets, look at gold and other commodities. I made a mistake when I told you to sell US stocks 1000 points ago. You can hold anything as long as it's not US dollars. Pet rocks will go up in price in dollar terms.
(*Except your house. That credit-based asset will continue to plummet and basically ruin your life -Enjoy!)
So, my mistake, although I was prettay, prettay clear about holding gold or foreign stocks which both way outperformed US stocks this year.
If you followed my blog and did what the fuck I told you for the past two years, you are basically crushing it.
You're welcome. Gravy fucking train is over. I"m too bored with all this. You can always call me...
No, you cannot.
I still think the US stock market is the biggest stock bubble in history, but it is competing with the biggest asset bubble in history, that which dwarfs the stock market.
The deflationists look at the US fundamentals and rightfully see awfulness and much lower prices going forward. Like me, they see bankrupt companies like AIG, Citigroup, Bank of America, Fannie Mae, etc. lead the charge the higher, and shake their pointy heads.
They see the stock bubble but miss the biggest bubble of all time popping before their eyes.
And that bubble my friends, is the US Dollar.
Pop.
