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Thoughts For The Week – My Two Cents

By Kurt Osterberg · On May 12, 2016

Even though this is being written around a Friday the 13th, I suppose it is sort of fitting in a way. Things are clearly freaky in the world. Being pushed to the forefront are upcoming (and largely pointless IMHO) political elections while a whole bevy of goings on percolate in the not so distant background.

Russia and the increasingly ominous rhetoric between the Kremlin and Washington. I am fairly certain that nobody wants or needs another war except for the various defense contractors, yet we are opening hostile fronts on now at least 4 continents – Europe, Asia, North America, and South America. Haven’t heard much about the South yet, but you will eventually. These aren’t all military conflicts, but they could easily turn into such. I am sure we could make arguments for a couple other continents, but those are the four that really jump out. People seem to have forgotten China. Granted, China has many problems of its own, but people seem to be forgetting how much China owns the US.

Continued economic malaise. The recent GDP numbers were awful and we all know they had to be cooked better than dinner at a 5 star restaurant just to look as terrible as they were portrayed. Job creation is a joke, the number of people out of the workforce continues to forge new highs every month, and then there is this minimum wage nonsense that is likely going to be on the national stage before too long. If anyone thinks that isn’t going to make a mess, then I would strongly suggest electroshock therapy. The malaise isn’t just here in the US either and that’s the biggest part of the problem. The whole globe is slow – all at once. Duh. We tied the whole thing together, then expect the little engine that just can’t anymore to pull the whole thing across the finish line quarter after quarter? Don’t get me wrong, people in the US are still burning money – almost literally. A casual glance through any metro area shows a smattering of new construction in the form of high-end coffee bars, restaurants, cigar shops and watering holes. The bifurcation of the US is reaching such a velocity that I imagine it won’t be too long before even the most modest of towns have gated communities where the haves can hide and lock out the have nots.

A completely propped up financial system. The fact that the energy shock hasn’t already caused a major derivatives crisis is somewhat telling in how far the establishment will go to preserve the status quo. I submit that at least 5 major banks have already required write-offs of their derivatives to keep them solvent. Nobody wants to rock the boat while the Sheeple pick their puppet. Remember, at the end of the day it is all a confidence game. Our misplaced confidence in this idiotic system is the source of the establishment’s power. The power still lies with the People; where it has always been. We’ve just been dumbed down to the point where whole generations think that their very right to exist comes from the state.

The US Govt collected a record $1.9+ trillion in taxes so far in FY 2016 and STILL managed to run an admitted deficit of $354 billion. Now, don’t forget that doesn’t included present value of unfunded liabilities and a bunch of other expenses – like the wars in the Middle East. So, despite record pillaging of America, the establishment is still burning money and taking on more debt in the name of We the People. Make no mistake, your children, grandchildren, and great-grandchildren will be paying off this bill with their future economic output. Don’t even think of it in monetary terms anymore, but in units of output. More on this in another installment.