And speaking of death throes, just how much longer can the U.S. government maintain its semblance of managing a capitalistic economy via democracy? The current “government shutdown” and “debt ceiling” debates have collapsed into vulgar saber rattling; with not a whit of input from the citizens they supposedly represent. Congress’ 10% approval rating belies the most embarrassing episode of “government” in American history; and, not to mention, flies in the face of the so-called “recovery” that tends to yield strong approval ratings. Yes, the people are so “approving,” banks are stuffing ATM’s with 30% more cash than usual for fear of a bank run.
As I wrote earlier this week, the nation would be best served if government did indeed SHUT DOWN. However, with so many people on the dole, it CANNOT do so for even a day; which is why, despite all the rhetoric and fear-mongering, 85% of all government services are now considered essential – and thus, running as usual. Sure, agencies like NASA are closed; and how about that, there’s no NFP report today. Of course not, because no matter what the BLS reports, the ENTIRE WORLD can see through such statistical, politically motivated fabrications. All you have to do is ask this Wall Street headhunter – yes, WALL STREET, where supposedly 20% of all U.S. profits emanate from; why he believes sentiment today mirrors that of the TITANIC!
The fact remains that the entire debt addicted global economy needs the U.S. government to continue PRINTING and SPENDING – darn the consequences. U.S. government deficits are exploding; and whatever “credibility” still remaining is being destroyed – lock, stock, and barrel. The U.S. economy is already in steep decline; and as for the rest of the world, let’s just say it’s in MUCH WORSE shape. This is why everyone, from Christine Lagarde to Mario Draghi to Jack Lew, are begging America for an “absolution that will never come” – per one of my favorite lines from, fittingly, Titanic. And oh yeah, this explains why essentially ALL Fed governors are now calling for “QE to Infinity.”
And thus, as TPTB again attempt to sap PM sentiment on a Friday afternoon – no NFP report irrespective – remember they CANNOT ever taper QE, and WILL eventually lose. The “gang of 535” in Congress are playing a game of political chicken that can ONLY end badly; and care of the dollar-based, global fiat currency standard, billions of financial lives could be decimated.
Well, that’s it for now. As of now, I intend to publish a third Miles Franklin Audio Blog sometime this weekend – so STAY TUNED.