Hit The Iceberg?
By Alex Saitta
June 30, 2021
Introduction:
There are so many things that are crumbling in our country from the end of sound money, to the loss of election integrity, to boys and girls not knowing who and what they are (see the new Miss Nevada below).
First Super Power:
Look at the things conservative Judeo-Christian morals, values and principles built in this country from 1875 to 1965 and it is impressive -- railroad system, energy industry, steel industry, banking and financial industry, space exploration, etc.
What has this liberal anything goes morals and values of late built? The internet -- Facebook.
You'd have to be a fool to think our current set of morals, values and principles will result in real in long-term prosperity.
Two Near Collapses:
Today, we can not generate economic growth without the Federal Reserve printing oodles of money and force feeding credit down the throats of businesses, government and consumers. It is like the marathon running who can not longer run, so they have to juice him up with 24-7 doses of amphetamines.
The economy would have collapsed depression-style in 2008 and 2020 if it wasn't for our wide open printing presses. Things are decaying that quickly below the surface and our economy simply can not handle extraneous shocks anymore.
Let Me Explain:
Every time the Federal Reserve buys an asset, it does it with printed money. Until about 2007 we had sound money as the Fed was prudent in buying assets and creating money. See picture 2 -- the Fed's level of assets on their books.
Sound money through two world wars, a depression, Presidential assassinations, etc.
Look at the last 15 years (see picture 2 again). Wide open printing of money. The Fed along with so many other things in our county has lost its integrity.
Hit The Iceberg?
I do think the decline is accelerating (the acceleration began early 2020), but have we hit the iceberg yet? I was in the camp of "not yet", but it is very hard to tell at this point. CA, NY, IL and NJ are clearly taking on water and a sure sign of that is the flight they are seeing in their population.
Remember the Titanic. It hit the iceberg, the front of the boat began to sink and the passengers fled that part of the boat. Flight is a sign of grave trouble.
If we have not hit the iceberg yet, it will occur this decade (Europe has already hit it). In the end, it will be every state, county and citizen for themselves. There is little the Federal government is going to be able to do to help.
