Its Getting Wonkier And Wonkier

How much more bizarre can this get? Elon Musk is bleeding over a billion in cash a month and his stock is through the roof as he now lowers prices on his shitty selling cars. You’re bleeding cash losses and you LOWER your selling price? Many of the top manufactures of cars are getting ready to roll out electric cars that will crush Tesla and the malinvestment just rolls along.  Free money and government subsidies will keep this pig on life support until the plug is pulled. Its the same way in all of the FANG type of stocks and it will not change until the free money stops. As this money sloshes within the banking system it MUST FIND A DEBT VEHICLE TO GO INTO. Therein lies the great illusion. 

Here is the dirty little secret and it is CRITICAL to the game. They must find debt vehicles that DO NOT affect inflation. In other words they have to delineate which areas of business/economy and the equities market they let money flow into. That is one reason money flows into ETFs from the banks instead of general market stocks. They also invest in individual equities BUT only in equities like Apple Google etc that have minimal leakage into the overall inflation metrics. They are creating enormous bubbles in joke stocks like NFLX that have almost zero effect on inflation. That is key to their game. Increase debt and asset prices while keeping real growth in the economy slow and keeping inflation looking tame. Its stagflation of course but it appears to be “controlled” stagflation. That keeps the game going and CONfidence in the fiat currencies, while the middle class are slowly bled and the poor class grows larger.  

Remember that the stagflation of the 1970s produced a 25.5-times increase in the price of gold and 38-times increase in the price of silver.  Stagflation is gold and silver’s best friend in terms of relative price performance.  It’s just a matter of time before the next leg of the secular bull market in gold and silver begins to take off to the upside in earnest and all that is required is patience. KWN

Meanwhile the the future of  the baby boomer generation bleeds underneath the surface as pension funds are more and more underfunded and exposed to a major reset. No one pays any attention to this “elephant in the room”, but they will. Its another “unavoidable” reality.  What will compound this problem will be the collapse in the dollar and the subsequent inflation that will accompany the collapse. You may even have some “bailout” by the government on your pension. Maybe they’ll give you fifty cents on the dollar. Your response may be, okay I can get by on that. BUT what do you do if the essentials are now costing you double or triple. You are getting 20 cents on the dollar in reality on your pension. Now that becomes a problem. AND THAT is only if we get stagflation. Hyperinflation would mean your pension is worthless.

So don’t get distracted by the Fed saying they want to reach inflation of 3% or whatever. They don’t. They want EXACTLY what we currently have and that is exactly why they are trying to raise rates currently even though the real economy is putting up slowing growth numbers. They aren’t trying to land this big plane on a little aircraft carrier……THEY are trying to keep us ON the aircraft carrier. They could heat this up and hit their target in a heartbeat. They have zero intention of changing the current strategy. Like Dillon Ratigan said…… Its a giant wealth extraction scheme. Of course the BIG problem for them is their debt and that cannot be serviced if interest rates cross the 4% number. All this massive debt starts imploding.

They’re developing a tighter and tighter control grid with the passing of every year now. They’re readying the digital gulag and preparing for an Artificial Intelligence driven existence that keeps everyone on the gulag. They’ll keep the bread and circus going and the constance diversion. They’ll play out the Trump circus until they shift to the next RINGMASTER. You’re in the circus so I suggest you enjoy yourself while you make serious preparation for its transition. It will change. It will breakdown. They know this is not indefinite. They know they have to change their host. They’re a parasite on you and they know you will die one way or another. The TRANSITION is what you have to be preparing for.  It is the moment when you hear the phrase “no one could have seen this coming”.  LOL … well YOU did.