Biden’s Boondoggles, GreenMageddon And Money-Printing Madness

Dear Reader,

We are in a whole new ballgame!

Both Wall Street and Washington have gone off the deep-end—spending, borrowing, printing, regulating and speculating like never before in history.

And on top of that we now have an administration bound and determined to unleash a GreenMageddon in pursuit of the climate change hysteria and to cause existing supply chain disruptions and labor shortages to be dramatically compounded by its unjustifiable and unconstitutional Vaxx Mandates.

In just the last 18 months, Congress has enacted $7 trillion of new spending for the Covid-Lockdown bailouts and the Biden infrastructure bill. Those enormous sums represent breathtaking overkill: They actually amount to 8.8X the $800 billion loss of GDP during the last six quarters. It’s also $54,000 for every single household in America.

Yet they are not done. The so-called $1.8 trillion compromise on Biden’s still pending social entitlements and green energy boondoggles will actually cost more than $4 trillion over the next decade when you remove the accounting gimmicks.

Indeed, there is nothing like this bacchanalia of Washington spending in all of American history—including during the New Deal and LBJ’s “guns and butter”excesses of the 1960s. Moreover, this potential total of $11 trillion of new spending was rushed through the Congress with virtually no hearings or expert analysis—meaning that Washington uncorked $85,000 per US household of new spending without the slightest regard for the long-term economic and fiscal consequences.

 

Likewise, the Fed’s balance sheet has erupted from an already bloated $3.8 trillion in August 2019 to $8.8 trillion at present. During the same 27 month period, the publicly-held Federal debt rose by nearly $5.2 trillion.

This means nearly 100% of Washington’s explosion of borrowing and spending is being monetized—-that is, financed with Fake Credits snatched from thin air by the mad money-printers at the Fed.

But the laws of sound money, fiscal rectitude and economic gravity can’t be defied indefinitely. There will eventually be a horrible reckoning, possibly soon.

So now is the time to get informed, focused and prepared.

That’s the mission of David Stockman’s Contra Corner.

Five days per week we provide facts, charts, history, analysis, assessments and warnings about the madness at loose on both ends of the Acela Corridor connecting Washington and New York.

We don’t buy the mainstream narrative about most everything: The Awesome Economy, the beneficent Fed, booming stocks, the Fauci Lockdowns, the Forever Wars, the Climate Change Crisis, the Woke Awakening and the rest of the Fake Narrative promulgated by the liberal elites.

That’s why in recent weeks we have taken on the Climate Change Hysteria fueled by the COP26 disaster in Scotland. The fact is, both the “science” and the economics behind this sweeping assault on fossil fuels and therefore the fundamental prosperity of today’s economy are bogus.

Carbon dioxide is the lifeblood of the global food chains, not a dirty pollutant; and its fluctuations are a consequence of natural warming and cooling cycles and numerous other planetary forces that have been going on for 4.6 billion years, not the cause of a runaway warming catastrophe that will destroy the planet before the end of the century.

During the past 600 million years since multi-cell life arose on earth, for instance, temperatures have been higher than at present 87% of the time—and during much of the past averaged as high as 25 degree Celsius compared to 15 degrees at present. Likewise, CO2 levels have frequently exceeded 2500 parts per million—dramatically higher than the 415 parts per million that have the Climate Change Howlers worked into a tizzy.

Still, the destructive goal of “net zero” fossil fuel emissions a decade or two hence comes from the same playbook as the Covid-Lockdowns and the sweeping public health policy interventions—including mandatory vaccinations. The latter are designed to exterminate a virus that is not an existential threat to 95% of the population and which, in any event, cannot be eliminated short of a brutal totalitarian regime.

In both cases, the underlying dynamic is massive expansion of the state and a relentless diminution of private liberty and prosperity. But enabled by Washington’s new embrace of rampant fiscal profligacy and unhinged money-printing at the Fed, authoritarian public health policies and lunatic anti-fossil fuel interventions now have an immense and frightening head of steam in the Imperial City.

Needless to say, we also take with a grain of salt the phony bickering among the bipartisan duopoly on these fiscal, monetary and regulatory threats. Both sides are overwhelmingly in the business of perpetuating their tenure in office and assiduously milking the Washington gravy train of lobbies, PACs and organized racketeering to do so.

Instead, we dissect the headlines and hot spots of the day from a fiercely independent vantage point based on 50-years of experience on both ends of the Acela Corridor: As a US Congressman, President Reagan’s budget director, Wall Street investment banker, original partner of the Blackstone Group, private equity investor and best-selling author.

1/30/1981 President Reagan and David Stockman meeting on the economy in the Oval Office
Unlike the MSM megaphones and groupthink transmitters, we have a filter.

It’s rooted in a firm belief in personal liberty, free market capitalism, sound money, non-intervention abroad and heavily shackled government at home.

When the current headlines, in-coming data, longer-term trends and relevant history is strained through these filters, you get an unvarnished picture of reality that the mainstream media and partisan hucksters from both sides of the aisle do their level best to bury.

…….read more below or Go Here Now

So Buckle-Up Real Tight!

Unprecedented Political and Financial Shocks, Spills and Booby-Traps Lie Dead Ahead.  

America’s Decades-Long Folly Has Reached the Breaking Point Owing To—

  • Massive Fed Money-Printing;
  • Reckless Government/Business/Household Borrowing;
  • Unhinged Wall Street Speculation;
  • Statist Takeover of Public Health and Climate Change Policies;
  • Corrupt Bipartisan Racketeering and Incumbency Protection Schemes in Washington;

Covid-19 Was Just the Pin That Shattered the Financial Fantasy and Sent 70 Million Americans Streaming to the Unemployment Offices.

At the Same Time, the Resulting Discombobulated “Mail-In” Election Shattered What Remained Of a Functioning Government In Washington.

And now we have a government run by Washington lifers—including Sleepy Joe’s 49-years on the public teat—that believes the solution to today’s accelerating inflation and faltering real growth is to double-down on the spending, borrowing, taxing and regulating policies which have brought us to the current baleful state.

The Blame Has Many Financial Authors—

  • Greenspan, Bernanke, Yellen, Powell…. Plus Wall Street Cheerleaders and Keynesian Economists, Who Have Thrived On The Folly Of Rampant Monetary Stimulus
  • It Also Includes a Long-String of Elected Politicians Who Recklessly Courted Disaster—The Bush’s, Clinton, Obama, Trump, Pelosi, Schumer and Now Sleepy Joe Biden, Too

The Desperate Money-Pumping by the Fed and Fiscal Incontinence of the Politicians Fueled False Prosperity on Main Street and Rampant Speculation and Immense Financial Bubbles on Wall Street.

It Also Generated Hideous Windfalls to the 1.0%, 0.1% and Billionaires Who Own Nearly 90% of the Stock—Even As Real Wages and Living Standards Stagnated In Flyover America

Then, Wanna Be Medical Dictators, Hysterical Media and Power Hungry Politicians Imposed Lockdown Nation…..Sending the US Economy into the Tank and Unemployment Soaring.

Like Always, Main Street Has Been Left High & Dry, Ensnared In the Lies, Scams and Self-Serving Mendacity of the Washington-Wall Street Axis

But Contra Corner’s Got You Covered

We Think They’re All Fools & Clowns…

We Lay Out Exactly Why 5 Days Per Week…

And For Just $1 Per Day!

Perspective, Perspective, Perspective!

That’s what Contra Corner provides. A framework for interpreting and assessing the flow of mainstream events and news which are usually not what they are cracked-up to be.

In this context, the botched mail-in election of 2020 was just the final straw, even as the coronavirus pandemic and lockdowns and now the panicked plunge into the so-called Green New Deal have already exposed a far more deadly disease.

Namely, the poisonous brew of easy money, cheap debt, sweeping financialization and unbridled speculation that has been injected into the American economy by the Fed and Washington politicians over the last three decades. This has—

  • Turned Wall Street into a dangerous gambling casino that has siphoned trillions of cash from corporate America to fund stock buybacks, M&A deals and other forms of unproductive financial engineering
  • While leaving Main Street buried under mountainous debts and faltering investment in growth and productivity
  • The result was a society addicted to the hand-to-mouth economics of spending more than you earn
  •  

It has also left the American economy exceedingly vulnerable to external shocks like the thundering blow of Lockdown Nation and the now incepting period of virtual partisan civil war brought on by the Biden/Dem control of both ends of Pennsylvania Avenue.

America’s dangerous economic fragility stems in part from the fact that—

  • 80% of households have no appreciable liquid savings or rainy-day funds
  • Businesses have piled their balance sheets sky high with debt and artificially extended their supply chains to the four corners of the earth in order to goose short-run profits and share prices—the risks be damned.

Needless to say, this unprecedented fragility became starkly evident after public health authorities essentially shut down normal commerce and economic function last spring. Workers were separated from their workplaces, consumers from the malls, diners from the restaurants, travelers from the airlines, hotels and resorts etc.

In turn, these disruptions caused production and incomes to fall abruptly. And now shrunken household incomes and business cash flows are literally pulling the legs out from under the $82 trillion edifice of debt and speculation that has been piled atop the American economy.

So both a renewed financial and economic crisis and an abrupt change of course lie dead ahead.

The 30-year party of False Prosperity is over!

Even if the Covid-19 hysteria eventually abates and the albatross of Lockdown Nation is lifted, the 2020s will be a decade when the chickens come home to roost.

As the next three years unfold, they may occasionally oxygenate and prop up Sleepy Joe in front of the Oval Office teleprompter to talk unity and hope. But the Kamala Harris/Progressive Left Regency will only massively exacerbate the crisis with a tsunami of new spending, borrowing, regulating, taxing and Nanny State meddling.

And if you overlay on all that a renewed Biden-promised burst of unconstitutional assaults on personal liberty, private property and business enterprise—then the limits of kicking the cans of delay and denial down the road to tomorrow will be reached.

Indeed, America’s economic and political fantasies will soon be overtaken and crushed by its accumulated due bills.

  • Bubbles will be burst.
  • Speculators will get carried out on their shields.
  • Easy money wealth will evaporate.

So that’s why you need to get prepared now. And one good way to start is with a subscription to David Stockman’s Contra Corner.

For more information about David Stockman’s Contra Corner, click this link: