The Survival Economist
Premiered Dec 31, 2021
The US economy is a fantastic illusion of prosperity built on Debt from years of central bank involvement of depressing interest rates. The stock market advance has been fueled by over a decade of low-interest rates and records corporate debt issuance for share buybacks. The housing market is an illusion, as well. This cannot end well. There will be a reversion to the mean.
Student loans, mortgages, credit card debt, car loans, etc. The bills are coming due, and people need to pay it off before they can spend money again. The DEBT is insurmountable. Medicare and Social Security are both bankrupt. This will NOT go over well with the American people. This house of cards created with $23 Trillion in Debt will eventually come down.
The core issue is we allowed the political elites to devalue the true meaning of money to the point the global monetary system has turned into a massive Ponzi scheme. Here are a few truths I do know. Gold is money; everything else is credit. That includes the dollar. The US Government deficit was roughly $670 Billion during 2017. It increased to $1.2 Trillion in 2018. In 2019 it was around $1.8 Trillion. This is a trend. And Gold looks like it wants to go higher.
It’s a Recession if your Neighbor loses their job, it’s a Depression if you lose yours, perspective is everything. Prediction? Everything will be fine until it’s not! Economists are like weather forecasters. We spend about a third of our time in recessions. Recessions are hard to predict until they’re upon you. I don’t know the answer. These things are hard to predict. The boom has lasted since 2012, but it doesn’t feel so much like a boom because it’s recovery from the worst recession since the Great Depression, and I don’t see the euphoria that we’ve seen in previous booms.
The US is very late-cycle, and unless there’s more policy stimulus into the market, the country looks like its headed toward a recession. Buckle up because the trickle-down debt economy is on Zombie Drive! Welcome to The Atlantis Report. The recession is here already. Everyone is paying more and more for goods and services, while wages are not keeping up with all of this. Instead, we’re getting a daily diet of lies concerning the economy from Trump, and the Federal Reserve.
In 2008 when the housing market crashed, one day, your house was worth something, and the very next day, it was worth nothing, and before the crash happened, the lying government and Federal Reserve were saying that the economy was booming then too. Don’t let Trump and the Federal Reserve pull the wool over your eyes. Remember, Trump has been impeached and has done basically nothing for anyone but himself since he took office in 2016. So stop believing Trump’s fairy tales about the economy and the lousy housing market.
It’s going to crash very soon, and just like every lame-duck president, Trump will continue to make false claims, and false promises, while blaming the Democrats, the Federal Reserve, and anyone who crosses his path. WE ARE IN A BUBBLE ALREADY! The long expansion in the economy, housing, and stock markets, combined with continued low-interest rates, could mean the U.S. is due for a recession. FED created this rigged game, and they have the ability to play this game for another year or so. Recession is always a blessing. Prices are out of control and not good for poor people. So what will most likely cause the next recession in the US?
I’d say, Debt. Massive Consumer, Student, and Mortgage debt. Basically, the exact same things that caused the last recession are pretty much in place now. It won’t be triggered by interest rates suddenly going up on Adjustable-rate mortgages as much as people making the decision to reduce their Debt. They slow their purchasing, Jobs are cut, and those people lose their purchasing power. Unemployment goes up, and the people who lose their jobs can not find new ones to pay for the over-inflated houses they bought. Recession triggers massive defaults, banks go under, and there you go. Not much has changed. The banks are STILL playing the Derivative game with your deposits.
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