The government has no alternative but to “do something.” They will—they have to—print more money to keep the rotten house of cards from collapsing on itself.
The Democrats have already said that they want to increase the next stimulus to over $3 trillion. The fact that most of the last round of stimulus was either overtly wasted, went to cronies, or can’t be accounted for, is completely lost on them. They recognize that unless they give a lot of money directly or indirectly to the hoi polloi, there are going to be millions of them on the streets.
Approximately 11 million renters and 4 or 5 million mortgagees are now in forbearance. They’ll be kicked out of their houses and apartments come January 1, barring a huge bailout. Where are those people going to go?
If Obama had made good on his ridiculous promise about shovel-ready projects, there’d be a lot more bridges that they could camp out under. But he didn’t. They have a real problem on their hands. Millions of people have been living above their means and have no savings. At this point, if they let landlords and banks kick all those people out, a number of things will happen. Residential property prices will collapse. Millions of people will be scrambling for somewhere to live. Lots of banks and landlords would go bust.
The longer the government kicks the can down the road, the bigger the inevitable bust will be. The stimulus money will have to continue because Biden doesn’t want it all to come unglued on his watch. The State is not only going to have to pay individuals and business owners that their idiotic policies have busted. They’ll be subsidizing banks, landlords, and utility companies—because you can’t live in a house or an apartment without water and electricity.
It’s worse than that because even if you cover the bare essentials, there’s no money leftover for maintenance. There will be millions of buildings across the country suffering from deferred maintenance. The South Bronx, East St. Louis, and Baltimore will be replicated across the country.
Doug Casey on What Happens When the Suspension on Evictions Ends
[You might also want to watch Fight for the Soul of Seattle and The Worst Economic Collapse Is Starting Now. And this is real:
If someone trespasses by pitching a tent on private property or walks out with a handful groceries from the corner market or steals power tools with the intent of reselling them online in order to pay for a basic need like food or rent, the city of Seattle may be OK with that.
The cities are driving productive people out and inviting the lazy and criminals in. The tax revenue is way down and is responding by raising taxes.
I can’t imagine it improving with their mindset. They are in a death spiral that is likely to pull the entire country, if not the world, into it.
Another data point is that, as a construction guy I know was telling me recently, “No one wants to work anymore. They just want to stay home and collect their checks.”
Free money isn’t free. There will be a price paid. And the one, probably, good thing that may come out of the Biden/Harris administration is that the coming collapse will be easier to place on the heads of the Marxist rather than the free market advocates.
We live in interesting times.—Joe]
The destruction of Seattle and other large cities by passing such apparently insane laws is a deliberate act. The election fraud reaches into local stuff, too. The goal is to drive the leftists out, so the fraud that moves along with them (even if most of those moving don’t do it themselves or even know about it) will be able to make the flipping of other areas from conservative to liberal will appear more plausible.
You mean like No bail releases in LA for most crimes? We’ve got it coming because the Empty Headed Voters elected the man who made it a civil right for both Rich and Poor to shit in the streets of San Francisco.
Crime will go up even more than it has already, of course. I just wonder what will happen to the No Bail program once someone realizes a white person who was rich (defined as having the amount of bail left in his bank account) tried to take advantage of the program.
Doug did not mention it, but it looks like we are going to conduct a live experiment on the validity of MMT – and even TRUMP was in on it. It will not be long before the helicopter money spigots will be opened all the way to provide a basic income. What national debt? It’s already passed the point of being affordable and will never be paid off.
And one more observation. Because the store shelves are still full, the utilities are on, and we’re warm and dry – despite a lot of people not working – tells me that we’re already an economy of make work. And. by the way, make work that has made a few at the top very rich.
So what happens when money is free and only a fraction of the population needs to work?
We can surely blame the Marxist’s. We should also remember we haven’t had anything resembling a free market in close to a 100 years.
I think it was Lucky Luciano. After visiting the stock market, and being shown it’s inner workings, lamented that he had joined the wrong mob!
And as the Market Ticker blog, (Karl Denninger), pointed out years ago. Since ’73 we have not had one quarter of growth that has been outpaced by our debt.
Supply and demand is as iron clad a law as gravity.
So the medium of exchange, and the control of it will always be the attack vector of the criminal class.
Is not the pursuit of money the root of all evil? As the sensation of power it brings gives faults hope to the weak mind.
This has been the fight of humanity throughout it’s history. It never ends well. But as Von Mises pointed out, it always ends.
To me, this is what must be taught to future generations before we pass.
In today’s world I view money as the root of all evil and that is what I was taught – yet a prime motivation of most people is to get more of it.
In 1900, 90% of the work force was necessary to produce food, today it is 5%, and now it looks like only a small fraction of the work force is necessary to produce our consumer goods. And look at the internet – we’ve gone from needing lots of people to provide knowledge to a few and now have at the tip of our fingers the worlds encyclopedia of everything and more.
Perhaps, just perhaps, we are entering Singularity, or is it the alternative that Doug is talking about?
We once had some Gerbils for the kids and were told that they would naturally limit their own population but that was not our experience. And like the Gerbils, we too are facing the same problem of too many people that we don’t need, but can easily provide the necessities of life.
As Joe keeps saying, we do live in interesting times.
I work in the ski industry in Idaho – I can confirm what your construction guy said –
“No one wants to work anymore. They just want to stay home and collect their checks.”
And it’s destructive to those not working – several of our good former employees who decided they’d rather collect than work have fallen into drug and alcohol abuse.
That which cannot continue will not continue. Printing money to keep the circus going must eventually end. But as long as the US Dollar is the world benchmark currency you can be amazed at how long the circus will last. China however has
plans to replace us and make the Dollar worthless. If they succeed the house of cards we call an economy will collapse at almost light speed.
Exactly right, I think it’s called the great reset. But they need Joe and the Hoe to be able to pull it off. Trump would never go for it.
This fight is for all the marbles.
Yes….the elites are pushing to implement “the great reset”.
The issue of course is that these things NEVER go as planned. If they get what they seek odds are good they will
NOT be happy with the outcome as once the clown show gets fully underway NOBODY will have any meaningful control
over things and a lot of them will end up in the crosshairs
regardless of how well they think they are insulated from the
consequences of their societal meddling.
Just as in every failure of socialism/communism worldwide, the leadership of the left will find a class of people to scapegoat. The left’s current leadership knows this and has already planted the seed for what they know will be needed. Here it will be whites in general, christians, and males (traditional Americans).
The persecution serves to distract from the inevitable failure of socialism, further acclimates the lefts followers to committing violence and following orders, and most importantly, further dehumanizes those followers by the humiliation of getting them to deny the lies they recognize the leadership is telling.
Just as in every failure of socialism/communism worldwide, the leadership of the left will find a class of people to scapegoat. The left’scurrent leadership knows this and has knows this and has already planted the seed for what they know will be needed. Here it will be whites in general, christians, and males (traditional Americans).
The persecution serves to distract from the inevitable failure of socialism, further acclimates the lefts followers to committing violence and following orders, and most importantly, further dehumanizes the followers by the humiliation of getting them to deny the lies they recognize the leadership is telling.
“…the coming collapse will be easier to place on the heads of the Marxist rather than the free market advocates.”
Don’t count on that. Or to put it another way; Easier for who? Certainly not for the Marxists. They will blame the advocates of liberty right to the bitter end. Anyone with noticeable wealth (even a little bit) who doesn’t surrender it to liars, looters, cheaters, robbers and squatters, anyone asserting a right to property, will be accused of causing the world’s problems. It always happens this way. Just wait and see.
Those causing the problems are already poised to blame the productive and the advocates of liberty. The mindset and rationalizations are already fully developed, and fully disseminated to the world. Those rationalizations are being embraced already, worldwide, not the least of the reasons for which is deflection of guilt. It’s their only way out, as they’ll see it. It’s an inevitability.
But God’s law is on our side. It’s there to protect us all, should we understand and incorporate it. To wit;
Thou shalt not covet thy neighbor’s house, thou shalt not covet thy neighbor’s wife, nor his manservant, nor his maidservant, nor his ox, nor his ass, nor anything that is thy neighbor’s. Exodus, chapter 20
Therefore it’s a violation of the supreme law of the universe to even want someone else’s home, or property, or spouse [marriage covenant], employees, means of production, means of transportation, OR ANYTHING ELSE that isn’t yours! Is that clear enough, or do we need to have it literally pounded into our numb skulls? It means, Look elsewhere for your means of sustenance, or for your sense of purpose; not at what someone else has.
Right there is the bedrock foundation of what we now think of as property rights, but as fallen beings condemned to death we have no rights, per se. Anyone who violates one of the Ten Commandments sins not against Man but against the creator God (which is a far worse offense)!
What we are experiencing, should we choose to allow ourselves to recognize it, is a total onslaught against every aspect and clause of God’s law and against His plan of salvation. Nothing more, nothing less. Let’s keep it simple therefore, as the saying goes, and not muddy it up with a bunch of clever mish-mash.
It will be easier for non Marxists if the Marxists are in charge when the collapse occurs. Doesn’t mean it will be easy or successful. Just easier than if all branches of government were Republican.