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]