|Holy Shit! This ain't good|
Exploding debt and a slow recovery following the 2008 financial crisis. Many of us claimed it really was not a true recovery but rather a debt-fueled false economy. All this continued with the aid of a few major distractions which took our eyes off the ball. Then the corona-virus hit. Looking back, the first diversion was the emergence of ISIS and the wave of refugees that destabilized Europe and the second was the trade war with China. This was another matter that was not resolved but ended in a small initial agreement that remains unfulfilled and the promise of a solution at some point in the future. This issue and all of the above should leave us unimpressed.
Recently we have been hearing more rumbling of growing conflict with China. It is difficult to argue such a possibility does not exist. This brings front and center the issue of throwing back the curtain and taking a harsh look at reality. Wake up, smell the coffee, and cast off the rose-colored glasses. when you do what you see before you is not pretty.
So, where do we stand?
- Today we are facing massive unemployment / retailers are closing
- Local stores, the taxes they pay, and communities don't matter just buy online
- Many small businesses will never reopen following the Covic-19 shutdown
- Travel and many large industries are in crisis
- Governments across the planet, including here in America, now lock people in their homes
- Interest rates have fallen to where people take on huge risk in search of yield
- A majority of Americans now believe the National Debt does not matter / MMT is accepted
- As long as the government will pay people not to work everything will be ok
- While some jobs may move back towards our shores we still remain noncompetitive
- Mega-companies continue to grow in power and dictate government policy
- If not for Central Bank shenanigans defaults would be the flavor of the day
- Pushed ever upward by the Powers That Be the stock market has divorced from Main Street
I should not be the only person feeling uneasy about several of these trends. I fear, over time, they will lead to an outcome that will prove very unpleasing to a majority of Americans. This is not to spread fear but to question the sustainability of such policies and what they will do to our culture. The effect is already showing up in subtle ways. With each day people are altering their expectations of the future. The options we had are rapidly vanishing and we as individuals are losing the ability to create or even shape our destiny. Most troubling is society's general acceptance of this. This does not bode well for our children.