The Post-Covid Economy Will Be Very Different From the Pre-Pandemic Bubble Economy

As the old models break down, opportunities for new models will arise. Unstable, unsustainable systems can lull observers into a comfy complacency as instability increases beneath a thin veneer of apparent stability. That’s the systemic story of the past 20 years: all the extremes that were needed to maintain the veneer of […]

Truth Is What We Hide, Cover Stories Are What We Sell

The fact that self-serving cover stories are now the norm is making it difficult to love our servitude with the slavish devotion demanded of us. The need to suppress the truth and competing narratives arose with the emergence of urban elites whose power and wealth were threatened by any exposure of […]

We’re Living the Founding Fathers’ Nightmare: America Is Corrupt to the Core

Our ruling elites, devoid of leadership, are little more than the scum of self-interested, greedy grifters who rose to the top of America’s foul-smelling stew of corruption. The Founding Fathers were wary of institutional threats to liberty and the citizenry’s sovereignty, which included centralized concentrations of power (monarchy, central banks, […]

This Is How Systems Collapse

Flooding the financial system with “free money” only restores the illusion of stability I updated my How Systems Collapse graphic from 2018 with a “we are here” line to indicate our current precarious position just before the waterfall: For those who would argue we’re nowhere near collapse, consider that over 20% […]

First the Deflationary Deluge of Assets Crashing, Then the Tsunami of Inflation

Once the pool of greater fools dries up, stocks crash regardless of what the Fed does or bleats. The conventional view is the Federal Reserve creating trillions of dollars out of thin air will trigger inflation. Not so fast. Yes, creating trillions of dollars out of thin air will eventually devalue the purchasing […]

Social Media’s Plantation of the Mind

The Company Store is open, buy whatever you want on easy credit, and don’t forget to take an approved narrative with you. I’ve been discussing the neocolonial-plantation structure of the U.S. economy since 2008, and now this model has reached perfection in social media’s Plantation of the Mind. Once you’re firmly […]

Re-Opening the Economy Won’t Fix What’s Broken

Re-opening a fragile, brittle, bankrupt, hopelessly perverse and corrupt “normal” won’t fix what’s broken. The stock market is in a frenzy of euphoria at the re-opening of the economy. Too bad the re-opening won’t fix what’s broken. As I’ve been noting recently, the real problem is the systemic fragility of the […]

An Economy That Cannot Allow Stocks to Decline Is Too Fragile To Survive

The fragile ice shelf of speculative bets and debt clinging to the mountainside is making strange creaking sounds– will you listen or will you ignore it because ‘the Fed has our back’? Feast your eyes on the chart below of the Nasdaq 100 stock market Index, which is dominated by […]

TINA’s Orgy: Anything Goes, Winners Take All

What nobody dares whisper is ‘there is no alternative to collapse’ because the system is now too fragile and brittle to survive. TINA–there is no alternative–is throwing an orgy of money-creation, and it’s one for the ages: The Federal Reserve has created over $3 trillion out of thin air in a […]

Opting Out, American Style

Virtually nothing in America’s top-down financial and political realms is actually transparent, accountable, authentic or honest. Opting out will increasingly be the best (or only) choice for tens of millions of people globally. Opting out means leaving the complicated, costly and now unaffordable / unbearable life you’ve been living for a new way […]

The Pandemic Gives Us Permission To Get What We Always Wanted

Dear Corporate America: maybe you remember the old Johnny Paycheck tune? Let me refresh your memory: take this job and shove it. Put yourself in the shoes of a single parent waiting tables in a working-class cafe with lousy tips, a worker stuck with high rent and a soul-deadening commute–one […]

The Destruction of Demand

Demand based on debt, unfulfilled promises and unaffordable habits is burning down. The first-order effect of the lockdown was demand destruction as shelter-in-place orders and business closures restricted consumers’ ability to spend. The second-order effect will be the permanent destruction of demand because people will realize they’re better off reducing their consumption […]

Our Fate Is Sealed, Vaccines Won’t Matter: Four Long Cycles Align

A Covid-19 vaccine, or lack thereof, will have zero effect in terms of reversing these cycles. Call it Fate, call it karma, call it what you will, but the cycles have aligned and nothing can stop the unraveling of all that was foolishly presumed to be permanent. We like to […]

Consumer Spending Will Not Rebound–Here’s Why

Any economy that concentrates its wealth and income in the top tier is a fragile economy. There are two structural reasons why consumer spending will not rebound, no matter how “open” the economy may be. Virtually everyone who glances at headlines knows the global economy is lurching into either a deep […]

Globalization and Financialization Are Dead, and so Is Everything That Depended on Them

Financialization was never sustainable, and neither was the destructive globalization it enabled. All the happy-story analogies to past pandemics being mere bumps in the road miss the mark. A popular claim is that the 1918-1919 flu pandemic killed millions but no biggie, the Roaring 20s started the following year. It’s onward […]

The Collapse of Main Street and Local Tax Revenues Cannot Be Reversed

The core problem is the U.S. economy has been fully financialized, and so costs are unaffordable. To understand the long-term consequences of the pandemic on Main Street and local tax revenues, we need to consider first and second order effects. The immediate consequences of lockdowns and changes in consumer behavior are first-order […]

What the Pandemic Revealed: a Morally Bankrupt Culture

Monopolies, quasi-monopolies and cartels are inherently exploitive and thus evil. What was “normal” for the past two decades was to turn a blind eye to the moral and financial bankruptcy of the American culture, the rot at the heart of its social, political and economic orders. The pandemic has shredded the […]

The Way of the Tao Is Reversal

As Jackson Browne put it: Don’t think it won’t happen just because it hasn’t happened yet. We can summarize all that will unfold in the next few years in one line: The way of the Tao is reversal. This is the opening line of Chapter 40 of Lao Tzu’s 5,000-character commentary on […]

The Fed Is Fueling a Revolt That It Cannot Control

It’s not that hard to forecast a populist revolt against the parasitic class that’s grown obscenely wealthy as a direct result of Fed policies. Under the tender care of the Federal Reserve, America’s wealth inequality has skyrocketed to new heights of obscenity as America’s billionaires feasted off the Fed’s recent […]

The Outlines of a Better World Are Emerging

Once the government’s ability to sustain its enforcement with money created out of thin air vanishes, the entire order vanishes along with it. The era of waste, greed, fraud and living on borrowed money is dying, and those who’ve known no other way of living are mourning its passing. Its passing […]