Come Hillary or High Water, It’s Just About Hell Week for the Economy

Election week is only about a week away. No matter who wins, rage will break out across the US landscape because, for the time being, the flames are kept minimally under a lid by hope on each side that their candidate will win. If Hellary Clinton loses, the establishment will come unhinged. If Trump loses, the Tumpettes are already sounding their charge against the election results. Nothing is going to settle down no matter who wins; but to give Trump’s supporters some encouragement, should the worst befall them, I offer the following silver lining:
As unendurable as I believe a Hillary presidency would be – with its suffocating smog of endless scandals and swirl of smoke clouds from all the wars she would continue to instigate – as she so clearly did while senator and then secretary of state – a Hillary presidency would have one great benefit: it would in fairly short order bring clarity for the entire nation to the fact that the nation’s economic ruin is the fault of the establishment that they’ve been electing for years (something about which many are obviously in great denial or they wouldn’t vote for Hillary in the first place).
Hillary is as establishment as you get; so is Obama; so was George Bush (both of them); so are most of the Republicans and Democrats in congress. While that is stating the obvious, the point I am working up to is that a Hillary victory is a chance for a total flush in all parts of government four years from now.

This post was published at GoldSeek on Sunday, 30 October 2016.

Nobody Is Talking About the Budget Deficit

You ever notice that none of the presidential candidates – of either party – are campaigning on a platform of deficit reduction?
Don’t you think that’s weird?
I remember when deficit reduction was a big priority. Back in 1991. Everyone freaked out over Reagan’s deficit spending, building up defense, but deficit-to-GDP only got up to about 6%. I remember my teachers showing us these current events slideshows in 4th grade. The deficit, at the time, was about $150 billion.
$150 billion sounds like a huge number when you are a kid. But it was only about 6% of GDP, which is above-trend but still manageable.
George Bush Sr. famously broke his pledge not to raise taxes (under the auspices of deficit reduction). He took the top rate from 28% to 31%.
But 1991 was the crucial year. Bill Clinton tapped into voter anger on debt and deficits and won the election handily, and then took the top rate from 31% to 39.6%. Everyone was pretty much cool with it. It was going toward deficit reduction.
He also froze discretionary spending. I worked in the Clinton government. You had to save your paper clips. The constant mantra coming out of the White House was ‘do more with less.’ Career government employees were pissed. No more boondoggles and expensive toys.
You know what happened: Not only did we balance the budget, we ended up with a surplus, that we all fought about – and squandered.
It has been all downhill ever since.

This post was published at Mauldin Economics on JANUARY 21, 2016.

Fed Has No Choice But to Expand QE

Mike Maloney reviews chart data from the St. Louis Fed and shows the great currency expansion that has ensued since Richard Nixon took the dollar off the international gold standard in 1971.  The data also shows how the velocity of money has not increased, which is why we are not getting much inflation yet (as Jim Rickards has pointed out numerous times on this site already).  Instead, this money expansion has only benefited the banks and the elite, who are buying up real assets with all this printed money, leaving the rest of us with pure debt.

Side note: It might be an interesting exercise to compare what happened during the fall of the USSR when government cronies were able to buy up all the nation’s assets on the cheap, while everyone else suffered.  The fall of the US is similar – the assets might not be so cheap, but the money they’re using to buy them with is easy to get if you’re a banker or an elite crony.

Four Horsemen – The Cycles of an Empire Revealed

This documentary by the Renegade Economist reveals the cycles that all the empires of the world have followed and how they all eventually fail.  The current disparity between the very rich and the very poor is but one indication that today’s western empire, led by the U.S. is approaching its end.

A Little Too Close for Comfort

Fox has fired Judge Napolitano after this rant. His intimations were a little too close to the truth.  No, the main-stream media, controlled by the established powers, cannot have a loose cannon like this, can they?

But in a beautifully articulated monologue in his final episode, Napolitano sums up America’s root problems and encourages the people to fight for their freedoms against the tyranny of government!