Economic Armageddon

11/02/2018

If you’re living in a little bubble somewhere in the middle of nowhere, U.S.A., you, no doubt, have little to no idea what is going on in the outside world.  Therefore, let’s take a brief look outside the cocoon, as painful though as it may be:

  • Venezuela – Third world nation status. Economy and socialistic system has totally disintegrated.
  • Greece – Worst economy in the Eurozone. Leftist government has the country in ruins.
  • Russia – Falling oil prices a disaster for Putin.
  • Iran – The mullahs struggling to survive. U.S. has terminated the Iran nuclear deal and reimposed sanctions.
  • South Africa – Everything that could go wrong…pretty much has.

Then, of course, there’s Spain, Argentina and Turkey – turkeys, one and all (no pun intended).

Politically, Brexit is a disaster for both the U.K. and the E.U.  Merkel’s party is on the outs in Germany as the immigration issue comes front and center in EU politics. Austria, Hungary and Bulgaria, and to some extent Italy, have already said no to more immigration.  Never mind that Sweden and France are essentially lost causes as immigration has already overwhelmed those countries since there isn’t enough money in the government coffers to pay for it all.  As Margaret Thatcher once said, “The problem with socialism is that you eventually run out of other people’s money.”

For those of you who think the U.S. is safe, not so fast.  The recent stock market correction should have sobered up a lot of people, although memories tend to be awfully short. Not only is the stock market still overpriced, so is housing which is due any day now for a down cycle.  True, the stats out of D.C. are relatively better than at any time in the last decade but keep in mind that the numbers game is rigged.  Yes, fake government statistics to go hand-in-hand with fake news.  As for the dollar, it will die eventually as all fiat currencies do, now that the dollar has pretty much lost its reserve currency status.

What the upcoming mid-term elections reflect is that there is a wide chasm between the left and right when it comes to economic policy.  If in power, Democrats will increase social spending programs, especially those tied to immigration, and will want to pay for it through huge increases in taxes.  We’re talking about going down the same road as the E.U.  Maybe, the fact that some Europeans are beginning to reverse course will be a wake-up call to America.  The mid-term elections may offer a clue as to what direction the country will ultimately go in.

 

“In a society in which nearly everybody is dominated by somebody else’s mind or by a disembodied mind, it becomes increasingly difficult to learn the truth about the activities of governments and corporations, about the quality or value of products, or about the health of one’s own place and economy.”  – Wendell Berry

 

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