The End of the American System of Government

The Northern system of government has failed…but they’ll fight to the bitter end to keep it going.

Ted Dabrowski and John Klingner from wirepoints.org has put together population and wealth movement data between states from 2010-2018. In it they find:

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Don’t Trust Any Data

All data cannot be trusted at this point. The government knows that the remnants of American civilization could be lost and they will do everything they can to keep it going.

From Zerohedge:

“As the following chart from Goldman’s head of European Equity Sales, Mark Wilson, shows companies haven’t sold this much stock in a single quarter in… well, forever.

According to Bloomberg data, secondary offerings in the U.S. raised $113 billion in the second quarter, the most on record. The nearly 400 deals that priced this quarter is also the most ever.

As Goldman adds, “we’re about to close out another record month of global equity issuance, with June set to eclipse the recent record set in May; the numbers (>$230b of supply in 7 weeks), and the market’s ability to absorb this sizeable supply, have been impressive (the quantum of global supply vs prior peak periods shown in the 1st chart; US supply vs recent years trend shown in 2nd chart)”

Following up on this staggering pace of equity sales, Bloomberg writes that “the record-high pace of secondary offerings that took hold in the second quarter is poised to continue into the summer” as share sales by U.S.-listed firms and their top holders raised the most money and happened the most frequently of any other quarter on record.”

The market went straight up after the March crash, all the while companies were selling new shares at the fastest pace in history. Something doesn’t add up.

Either the Fed is secretly buying stocks or there is a tremendous amount of money being deployed by private capital. If this is the case (which I don’t think it is) this money will flow into all manner of goods and drive inflation off the charts.

I believe the correct picture is this – the Fed is directly buying stocks in an effort to prop up the last vestiges of American civilization – 401k’s, pensions, conglomerate corporations, the mortgage market, and labor market supported by 25% government spending. Once one goes they all go.

If the market collapses, the retirement accounts, pensions, real estate markets all tank forever and the entire populace will immediately be in the streets rioting. The Fed knows this and is doing everything it can to keep the game going. So much rests on keeping the public unaware of what is happening, they will do anything – fabricate any data, buy any and all stocks/bonds/mortgages etc. to stave off the collapse for another day.

They know what happens if all that goes bust and they can’t let it happen. It doesn’t matter what the consequences are, the consequences pale in comparison to an immediate implosion. Everyone would be on the streets rioting.

The data says keep buying, keep spending, the economy is good, everything is fine. The Fed did a great job getting through the covid affair, everything is back to normal. But it is an illusion.

American Politics: Who Can Give Away More Fiat Money

Reuters:

It’s unraveling fast. This looks like direct vote buying at this point. The future of American politics is who can give the populace the most money for their votes. Trump says “I support actually larger numbers than the Democrats”. Well I have a feeling the Democrats can come up with a bigger number.

Trump said he supports direct payments to individuals as part of the so-called Phase 4 stimulus package.

“I do, I support it, but it has to be done properly, and I support actually larger numbers than the Democrats,” Trump said in an interview with the Fox Business Network.

“We want to create a very great incentive to work. So, we’re working on that and I’m sure we’ll all come together.” .

Recovery is at the End of the Road, but There are Cliffs in Between

I keep seeing articles about the ‘road to recovery’ and that idea is missing the entire point. This fiat system has to go to failure, then something else will be put in its place. The road goes to collapse and then rebuild an entire civilization before it can even think about recovery. Who would want to keep this fake fiat money system that has destroyed so many?

A long term economy cannot be built on the fraud of fiat money creation. Ghengis Khan tried it with tree bark, Rome tried it with bronze slugs, America with her preposterous digital ‘money’.

The great swindle, fortunately, is imploding. Those in power will seek to keep the game going as long as they can in an effort to take no blame and/or get out of dodge.

Real Estate Outlook in a Collapsing Fiat Based Economy

Real Estate Valuations Post Covid

Let’s say someone bought 10 units in 2019 for 1.2 million dollars. Each unit renting for $1,000 a month. He made 10k in gross income and after expenses his net operating income was 6k a month. The mortgage payment was 5k, leaving him with cash flow of 1k a month. OK, so a fairly good deal, certainly many investors would have done that deal in 2019 as the commercial property market was hot.

Then covid hits and 2 renters move out. A third renter has asked for forbearance and a fourth renter is not responding to calls or answering the door. So instead of making 1k a month our investor is now losing 3k a month. He is paying handsomely to own this investment property.

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An Economic Warning From Clive Maund

From CliveMaund.com:
“Finally, I want to take this opportunity to recommend that you do whatever you can you make sure that you have at least some physical gold and silver in your possession. Very bad times are headed our way and most Americans have no idea what’s coming down the pike. If you have to pay a premium then pay it, because the premiums are only going to get bigger with passing time, and eventually physical metal will be very hard to come by. I particularly like silver for 2 reasons – one is that it is still very undervalued relative to gold, and the other is that you are less likely to be hit over the head or shot when you try to trade it for goods. Silver coins of varied denomination are viewed as ideal. Gold buried in vaults thousands of miles away may sound like a great idea, but when things get really bad, you may not be able to get to it, or it to you. If you have sufficient resources it’s still a good idea, but you still want a quantity of physical in your possession that you can trade, and of course the means and willingness to defend your stash from marauders.”

Monetary Crankism as National Policy

I watched recently a speech given by Murray Rothbard at a conference back in the 80’s (I don’t know if the video has been pulled from Youtube, but I cannot find it). He opened the talk by saying that a couple times a year he receives a mailing from someone, usually in a large envelope. Inside would be a paper 400+ pages long written in red crayon. Rothbard said if he scanned through the writing he would find that the solution proposed by the author usually boiled down to giving everyone more money, copious amounts of money. Rothbard says that in the old days these people would be called “monetary cranks”.

I find it humorous that what was once considered extreme monetary crankism, is now the stated policy of the federal government.