“The final outcome of the credit expansion is general impoverishment.”

Ludwig von Mises - Wikipedia

Ludwin von Mises, “Human Action”

The Ruling Junta installed by The Party has been quite busy:

  • Rejoined the Paris Climate Accord which promises to raise US energy prices with no impact on climate
  • Rejoined WHO after they allowed China to export a virus that killed over 2 million people and crashed the US economy
  • Terminated the Keystone Pipeline resulting in thousans of workers and raising heating and power prices – while enriching Democrat donor Warren Buffet whose railroads will carry the oil.
  • Extended eviction moratoriums pushing more small businesses into bankruptcy
  • Increased the national debt by $1.2 trillion through “American Rescue Plan.”

Count on Gordon in EconomicPrism to nail it all:

Adventures in social reconstruction, however, are much more appealing to the archetypical insider President like Biden – one beholden to special interests.  What’s more, the people demand it.

They want free paychecks, free drugs, free food, free rent, free school, free energy, debt free loans…  You name it.  They want it all.  And they want much, Much, MORE.  Thus, Biden intends to give it to them.

…

How creating money from thin air and distributing it to a growing class of dependents is supposed to help people is unclear.  But what is clear is that free money debases the rewards of hard work, saving money, and paying one’s way in life.  It also propels the economy and financial system to an ever more precarious place…a place where only total catastrophe is possible.

Naturally, fraud is inherent to this central planner directed process.  And as credit expansion pumps money through the economy, wild and unpredictable things happen.  Austrian economist Ludwig von Mises, in his work, Socialism: An Economic and Sociological Analysis, explained:

“Credit expansion can bring about a temporary boom.  But such a fictitious prosperity must end in a general depression of trade, a slump.”

When central planners shut down the economy last year to bend the coronavirus transmission curve they succeeded in collapsing the debt structure.  Putting moratoriums on evictions and foreclosures and placing a hold on student loan payments doesn’t solve this.  Nor does printing up trillions after trillions of dollars and pumping it into the economy as ‘stimulus’ to counteract the collapse.

The rapid vaporization of wealth the central planners have set us up for will be of scope and scale the world has never before seen.  We don’t know if the bottom will fall out next year or five years from now.  But we’re certain the boom has turned into the crack-up boom.

Trump’s Gone and Suddenly CoVid Data Improves – Hilarious!!!

The case against high-cycle PCR tests as a pandemic metric has long been known in the scientific community – except among those on the Leftscreaming “The Science!” while implementing crushing election year economic lockdowns.

And so on the very day The Party installs their selected president, we have WHO taking belated action to address the long-standing false positive issue in PCR testing.

Even The New York Times was aware of the PCR/”asymptomatic” problem as far back as August 2020 when they published an article stating that as many as 90% of COVID-19 tests in three states were not indicative of active illness. The high-cycle PCR tests were picking up viral debris incapable of causing infection or being transmitted.

Here’s Tyler Durden of ZeroHedge on the incipient “miraculous” end to the China econo-bio war strike of 2020:

If the percentage found by the Times in August holds, there have been approximately 2.43 million actual cases to date, not 24.3 million.

There is also no way to calculate the deaths from COVID-19 rather than deaths with some dead viral debris in the nostrils.

As for the flu:

As an aside, this also clearly explains the disappearance of the “flu” during this season as the plethora of high Ct PCR Tests supposedly pointing to a surge in COVID are nothing of the sort.

As they say, “timing is everything.”

References:

Cohen, A. N., Kessel, B., & Milgroom, M. G. (2020). Diagnosing COVID-19 infection: the danger of over-reliance on positive test results (p. 2020.04.26.20080911). doi:10.1101/2020.04.26.20080911

Surkova, E., Nikolayevskyy, V., & Drobniewski, F. (2020). False-positive COVID-19 results: hidden problems and costs. The Lancet. Respiratory Medicine, 8(12), 1167–1168.

https://www.zerohedge.com/economics/right-cue-biden-who-admits-high-cycle-pcr-tests-produce-massive-covid-false-positives

Gonna Party Like It’s 1999

Here’s The Contrarian on the current asset bubble we’re in:

  • The U.S. stock market and U.S. bond market are historically overpriced, and real estate is at the high end of the valuation scale too.
  • Starting valuations are so poor that seven-year real return forecasts are direr than they were even in 2000 and 2008.
  • In contrast to past periods of market weakness, bonds are unlikely to offer the same safe haven.
  • Thus, where can an investor turn in order to enhance their investment allocations and prospective future real returns?
  • How about the third major asset class, specifically commodities, and commodity equities, which are historically non-correlated and still historically out of favor?

Want another point of view?

OK, let’s recall Permabull Jim Cramer a year ago when the infamous and notorious Dr. “Death” Fauci was still recommending people take cruises:

We are buying some of every one of these this morning as I give this speech. We buy them every day, particularly if they are down, which, no surprise given what they do, is very rare. And we will keep doing so until this period is over – and it is very far from ending. Heck, people are just learning these stories on Wall Street, and the more they come to learn, the more they love and own! Most of these companies don’t even have earnings per share, so we won’t have to be constrained by that methodology for quarters to come.

– Jim Cramer, February 29, 2020.

Recall how Cramer did back in 2000 when we saw the last bubble implode

In contrast, GMO says don’t get Cramered – there’s a desert ahead. And this is what they think it looks like:

Bears get rich, bulls, get rich, pigs get slaughtered.

What to do?

Well, The Contrarian says commodities.

Then, there’s always Max who focuses on the explosion in Federal spending from The Party making us all “Venezuelans”. Which makes sense since The Party aligns with Venezuela.

That means more hard assets immediately and hope your real estate appreciation outpaces food inflation.

So let’s party like it’s 1999:

Reference:

https://seekingalpha.com/article/4399955-time-to-go-to-cash-for-next-7-years

https://www.gmo.com/americas/research-library/gmo-7-year-asset-class-forecast-4q-2020/?source=content_type%3Areact%7Cfirst_level_url%3Aarticle%7Csection%3Amain_content%7Cbutton%3Abody_link

Darkness at Noon

“Our Press and our schools cultivate Chauvinism, militarism, dogmatism, conformism and ignorance. The arbitrary power of the Government is unlimited, and unexampled in history; freedom of the Press, of opinion and of movement are as thoroughly exterminated as though the proclamation of the Rights of Man had never been. We have built up the most gigantic police apparatus, with informers made a national institution, and the most refined scientific system of political and mental torture. We whip the groaning masses of the country towards a theoretical future happiness, which only we can.”


― Arthur Koestler, “Darkness at Noon“

Apocalypse Now

After the Fall

“I am beyond their timid lying morality, and so I am beyond caring.” — Captain Willard, “Apocalypse Now“

Z-Man in Taki:

The grandees of official Washington, of course, will be celebrating. Their long nightmare has finally come to an end. Donald Trump has been evicted from their presence. For four long years—in defense of our democracy, of course—they have labored to get the rightfully elected president removed from office. That day has finally arrived. To put it another way, they will not have Donald Trump to kick around anymore.

The question lurking on the edge of those celebrations is, can they reel back the madness they have unleashed over the past four years? Largely due to their reaction to the 2016 election, they have smashed every institution on which their legitimacy rests. The narrative thread of the past four years has been establishment types corrupting the institutions to undermine the Trump administration.“The narrative thread of the past four years has been establishment types corrupting the institutions to undermine the Trump administration.”

As it stands, roughly half the country thinks the election was rigged and that future elections are going to be rigged. It is pretty much impossible to sell the whole democracy thing when half the voters do not trust the voting process. Lost in all the excitement is the fact that Congress has an approval rating of just 15%. The fact that the “people’s house” now sits behind layers of razor wire and is patrolled by the army does not help their image, either.

…

The bottom line is, while the ruling class is partying behind their barricades this week, the problems facing them grow worse. It is more than a bit ironic that they have picked now to embrace a siege mentality and bunkerize the Imperial Capital. They have broken the country so thoroughly that the only thing that could possibly unite the people is the shared hatred for the people on the other side of those barricades.

Indeed

After the Fall

Canary in the Mine: Red Ponzi Corn Imports

Per Tyler Durden at ZeroHedge:

On the same day that China published a much stronger than expected (if largely laughable as we first noted and Michael Pettis subsequently confirmed) GDP print, making China the only major economy to grow in the “year of covid”, China customs data showed that grains imports soared to record highs in 2020 after tight domestic corn supplies pushed prices to multi-year peaks, driving demand for cheaper imports.

To be precise, a record 11.3 million tonnes of imported corn last year – exceeding the annual quota of 7.2 million tonnes.

A first.

Meanwhile, everywhere else, grain prices have exploded by over 60% in the past 6 months…

https://www.zerohedge.com/economics/china-imports-corn-wheat-hit-record-high-amid-soaring-food-prices

https://www.reuters.com/article/china-economy-trade-agriculture/update-1-chinas-corn-wheat-imports-in-2020-reach-record-highs-idUSL1N2JT0UW

https://www.theepochtimes.com/chinas-food-prices-skyrocket-as-ccp-virus-outbreak-spreads-to-more-regions_3661588.html

Stolen Election: the Evidence

Dr. Shiva Ayyadurai gave presentations. Here is his affidavit of evidence in print form: https://www.courtlistener.com/recap/gov.uscourts.gand.284055/gov.uscourts.gand.284055.6.1.pdf

Dr. Shiva Ayyadurai explains to Arizona legislators that the Dominion Machines Counted Biden Votes as 1.3 Votes and Trump Votes as 0.7 Votes
https://www.youtube.com/watch?v=nwHa1pfyJjc

Dr. Shiva Ayyadurai explains the electoral fraud
https://www.youtube.com/watch?v=Ztu5Y5obWPk

There is a long list of references to election theft evidence here: https://www.paulcraigroberts.org/2020/11/30/the-proof-is-in-the-election-was-stolen/

See especially:  https://sharylattkisson.com/2020/12/what-youve-been-asking-for-a-fairly-complete-list-of-some-of-the-most-significant-claims-of-2020-election-miscounts-errors-or-fraud/

Dominion Software Intentionally Designed to Influence Election Results: Forensics Report

https://www.theepochtimes.com/dominion-software-intentionally-designed-to-influence-election-results-forensics-report_3617675.html?utm_source=news&utm_medium=email&utm_campaign=breaking-2020-12-14-2

More Than 432,000 Votes Removed From Trump in Pennsylvania, Data Scientists Say

https://www.theepochtimes.com/exclusive-over-432000-votes-removed-from-trump-in-pennsylvania-data-scientists-say_3642202.html?utm_source=news&utm_medium=email&utm_campaign=breaking-2021-01-04-1
https://www.theepochtimes.com/georgia-election-data-shows-17650-votes-switched-from-trump-to-biden-data-scientists_3640670.html?utm_source=news&utm_medium=email&utm_campaign=breaking-2021-01-02-1

Stanford University Expert Hacks Dominion Voting Machines in Real Time Proving Ability to Alter Vote Count
https://www.paulcraigroberts.org/2020/12/31/stanford-university-expert-hacks-dominion-voting-machines-in-real-time-proving-ability-to-alter-vote-count/

Georgia Election Official Who Scoffed at Election Fraud Evidence Finds that an Out-of-State Woman Used His Address to Vote in Georgia
https://www.rt.com/usa/510515-georgia-election-manager-voter-fraud-trump/

https://www.rt.com/usa/509674-michigan-dominion-audit-errors-fraud/

Solar Minimum and Plunging Cold

Arctic outbreak – Feb 2, 2021 [tropicaltidbits.com].

Europe has been taking it on the chin this month pushing up European power and gas prices to their highest levels in years, and record spikes in power markets.

“The current cold spell in the northern hemisphere is paving way for a tighter global gas market throughout the year,” said Massimo Di Odoardo, director of European gas at WoodMac.

If the cold weather persists over the next month, power prices in Germany and the Nordic market could gain as much as 10 per cent because of the hike in demand, said Arne Bergvik, chief analyst at Swedish utility Jamtkraft AB.

The past week showed what the volatility is all about. An 18 per cent jump last Tuesday in the benchmark contract was followed by the biggest plunge ever a day later. Prices moved at least 10 per cent from the five-day average on 66 occasions over the last year, according to ICE Endex.

“We have a completely reversed situation at the start of 2021 compared with a year ago when the weather was mild and wet,” said Bergvik at Jamtkraft. “If the cold and dry weather continues prices should go up.”

The shift towards a colder planet is evident in the current northern hemisphere snowmass which has returned to the 30-year average.

These effects are evident in European natural gas demand for space heating and electric power prices.

Image

References:

https://oilprice.com/Energy/Energy-General/Goldman-Sachs-Warns-Of-Bullish-Perfect-Storm-For-Natural-Gas.html

https://www.businesstimes.com.sg/energy-commodities/arctic-cold-blast-will-prop-up-european-energy-prices-into-spring