February 25, 2020

Perfect Storm?

Is this the one? Dow Jones down nearly two thousand in just two days! The Fed's only recently got done with its 3rd round of "Quantitative Easing" that was supposed to be a one time bailout in 2008. I have seen estimates of more than 3 trillion bucks that the Fed has inserted into the markets between the "Q.E.s" &and their sweetheart "Repo" or stock repurchase programs. (Update 2/28 now down over three thousand and still dropping like a rock)

Republicans are fully aware that if they let the market collapse before the elections, they will be screwed.

I'm wondering what kind of rabbit they are going to try to pull out of the hat! They really can't print much more money or the dollar will completely crash, although if you remove the "corrections" from the inflation index, you'll find that it's already pretty damaged. Same for unemployment, but that was the subject of an essay I wrote back on August 30th.

They already have killed future stimulus from infrastructure spending by their insane tax cuts for billionaires, and even trying to cut taxes any further would mean that they would have to cut everything including the military. We know that is unthinkable.

War is always a reliable stimulus for the economy, but it is beginning to look like even Republican voters will be opposed to that.

We've got a perfect storm building for the economy. Not just the US, but around the world as well. Hurricanes, floods, droughts, fires, etc. Then here at home in the good ol' USA water shortages, record storms and fires, combined with the insurance companies starting to balk at covering homes and businesses in danger zones. Not to mention expecting the taxpayers to step in and pay for rebuilding places where they won't. the problems at Boeing and the Dear Leader's trade fights. Do I need to continue?

After these twelve years of financial finagling to artificially keeping up an artificial economy, the bottom is gonna be a long way down. And I fear that it will be a helluva crash and a long, bumpy road to recovery.

Buckle up, buttercups!

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