What could possibly go wrong? – EconomyMorning

Now that the Democrats have the House of Representatives, the Senate and the White House… they are ready to implement revolutionary… and disastrous innovations.

Now that Trump will – probably – step down … that there are several vaccines to curb the coronavirus … that US employment is climbing … that the stock markets are reaching new heights … that Democrats control the House of Representatives, the Senate and the White House…

… What could possibly go wrong?

Should pessimists just go home? Should Declinists smile… since now the Biden clan can finally get to work… and succeed where “MAGA” supporters have failed – restore America to greatness?

Oh, dear reader… you’re not saying that seriously, are you?

A matter of time

We are examining an empire… which ages, rusts, weakens… is in the process of giving up the ghost… as its ruling class desperately clings to power.

For now, however, all is well. In supermarkets, the shelves are still full. The US dollar keeps its value. The stock market remains high. And the lights are still working.

Let’s take advantage while it lasts.

The real problems will likely begin this year, with the country entering an even more treacherous phase. Thanks to the chaos sown in 2020 … we must prepare in 2021 (and beyond) for a record harvest of bitterness, economic decline and political discord.

Last year, US authorities made the third major “mistake” of the 21st century. They confined much of the economy (even though economically active people were unlikely to fall victim to the coronavirus) … then tried to replace the real losses with new counterfeit money.

Now, both the financial industry and the real economy depend on this counterfeit currency for their survival.

“One of the first things I want to do, when our new senators are in place, is send the checks for $ 2,000 to American families,” Democrat Chuck Schumer said this week.

According to Joe Biden, more money will come. He said he would reveal the details on Thursday. But “the addition”, he says with pride (and perhaps a little madness), “will be high.”

Perforated baskets

On this point – if nothing else – the future president will probably be right. The bill for all this nonsense – lockdowns, bailouts, allowances, money printing, racketeering, multibillion dollar deficits, War on Terror, corruption and all the associated nonsense – will be way higher than he thinks. .

Bush, Obama, Trump… and now the Delaware hideout… all share the same goal – to keep the elites in power, at all costs. It now means “inflation or death”.

The authorities have created a company steeped in debt. They now have to add more and more counterfeit money to prevent it from falling apart. In 2020, tax revenues covered only about half of government spending.

With Joe Biden expected to take office in a week’s time, and Congress is now controlled by Democratic Breakthrough Baskets (rather than Republican Breakthrough Baskets), we can expect the money printing press to heat up more than ever.

Permanent Gabegie

These injections of counterfeit money could mean a rise in stocks. According to Business Insider :

“The S&P 500 will climb an additional 10% as the Democratic-controlled government implements new stimulus measures, according to Credit Suisse.

Democrats’ future control over the US Senate paves the way for further fiscal stimulus and strong stock returns throughout 2021, said Thursday [dernier] Credit Suisse analysts.

The team, led by Jonathan Golub, increased their target for the S&P 500 in 2021 from 4,050 to 4,200 points in a note to clients, which implies a rally about 10% from current levels. The bank expects the index’s earnings per share to climb to $ 175 this year, then hit $ 200 by the end of 2022. “

Remember the big change in 2020 was this: previously, authorities would spend trillions of dollars on their Wall Street friends; now they are also trying to support the real economy.

We venture into the field of guesswork … but it is very likely that Democrats will attempt to turn occasional “stimulus” checks into permanent mismanagement. In other words, someone will notice that sending checks every once in a while creates a choppy economy.

A “temporary” measure

As it stands, no one knows what to expect. Consumers are reluctant to consume; companies are reluctant to hire… and investors are aiming for short-term speculative gains, instead of making the kind of long-term commitments that increase real wealth.

Economists will tout the benefits of “regular”, predictable stimulus measures – in other words, “universal income”.

It will be a “temporary” measure, of course – like the Federal Reserve’s low rates, US troops in the Middle East, the War on Poverty, the War on Drugs, debt ceilings, quantitative easing, social distancing, and digs in the airports.

But with universal income, the money will continue to flow… until the dollar itself has lost all value.

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