There is complete certainty that this spending measure will be signed into law, since it keeps the bankrupt federal government - which added another $3 trillion to the now $26.8 trillion in debt just this fiscal year (ends Sept. 30) - operating through the all-important elections.
The preening peacocks inhabiting the halls of congress and various enclaves in and around Washington, DC, adorned in the finest designer clothing and fanciest suits, made sure to keep their power party going, all at the expense of US taxpayers, who foot the bill - that part not financed by the Federal Reserve - for their fantastic folly of fiscal failure.
While these very same representatives of "the people" were unable to find the means to produce a second stimulus bill for the public, finding common ground to fund their own exploitative escapades was easily accomplished. If anything, this clearly shows that the elected officials in the federal government and their unelected underlings have little to no regard for their constituents while at the same time hoisting themselves up on pedestals of pride and glory, paragons of virtue and goodness.
They are nothing more than common grifters, the lot of them, fattening themselves on public funds, enriching themselves through insider information without regard to the welfare of the country. Wallowing in trillions of dollars of unpayable debt, they've expanded the federal debt to GDP ratio beyond 136 percent with no end to their profligate spending in sight.
As a whole, the United States congress - and to a large degree the present and previous holders of the office of the presidency - have, in the short span of 50 years, decimated the economy of the country. They are not alone in their insolvency. Most states, run by equally incompetent money-grubbers and cullers of favor, are also deeply indebted to the central bank, the Federal Reserve, itself an illiquid, insolvent fantasy.
The Federal Reserve has more than $7 trillion on its balance sheet, comprised of mortgage-backed securities, treasury bills, notes, and bonds, corporate debt, junk debt, and municipal debt, all marked to magic at flawed, make-believe par values. Without the ability to create currency out of thin air, the Federal Reserve would be first in line at the collection agency, followed closely by the zombie banks and corporations which cannot survive without central bank generosity. The vicious cycle of a central bank plying their very own monopoly money to prop up deeply-indebted banks, corporations, and governments has just about run its course. The currency is nearly worthless and everybody knows it.
The Federal Reserve, the US central bank, funder to the country and the rest of the world, is, and has been bankrupt since 2008, if not at an earlier date. The underpinnings of the global economy are shattered and nothing speaks to this reality more than the continuing stomping down of the price of gold and silver futures contracts and their counterparts in fraud, spot prices set by the London Bullion Market Association (LBMA).
The ability of the participants in these frauds - central banks, commercial banks, bullion banks and others - have managed to keep the prices of precious metals - real money - under wraps for decades. That overt manipulation of perception, making people believe that paper and promises are worth more than physical gold and silver has kept their fraud going since the end of the gold standard when then-president Richard M. Nixon formally closed the gold window on August 15, 1971.
Prior to that, US dollars were redeemable in gold. Since then, US dollars have been redeemable for debt, war, crime, unkept promises, and assorted military actions. Reality has been in suspended animation via normalcy bias for nearly 50 years. In the beginning of the fiat era, nobody wanted the system to fail because it was working for everybody. As time progressed, fiat currency has worked for fewer and fewer people. Incomes stagnated for most of the middle and lower classes while the rich got richer to the point at which we have arrived today: nothing is "normal," everything is contorted, twisted, contrived, absurd.
Already there is blood in the streets, literally, in cities large and small. Tens of millions are unemployed. Business failures have reached epidemic proportions atop the false narrative of the coronavirus and COVID-19. The country has fallen apart, fractured by the purveyors of a phony currency that has lost 98% of its value since 1913.
Stock prices and home prices are hand-in-hand the most egregious manifestations of the fraudulent currency. These assets are so overinflated as to make even the most bovine bulls blush. The median existing house price jumped 11.4% from a year ago to a record $310,600 in August.
In August of 1971, the median price for an existing single family home was roughy $26,400. The price released on Tuesday by the National Association of Realtors is nearly a 12-fold increase from 1971. Incomes have not kept pace.
Median income in 1971 was around $7000 a year. Today's median income is approximately $43,000, if one has a job. That's about a six-fold increase, which is why it now takes two incomes to afford a home, when it took only one in 1971 and prior. Nobody was able to keep pace with rampant asset inflation, which is a cover for the reality of an eroding currency and loss of purchasing power.
As the world spins through space and 2020, careening towards a date with destiny around November 3rd, there is no normal, new or otherwise. Everything is a distortion of reality, so take it with a grain of salt. The price of an ounce of silver is surely not $24, nor is $1892 the real price of an ounce of gold. It's all based on the faulty perception of a currency based on nothing but faith and hope having value. Faith is in the issuer, and the hope is that the value is retained.
Hope died in 1971. Faith is taking the next train out of town.
In case you missed it (we did), Episode E1594 of the Keiser Report, Pushing Plastic, Holding Junk Bonds is a tour de force for Max, Stacy, and, in the second half of the show, Max's guest, Michael Pento. This episode features some interesting historical perspectives from the 1970s, evoking memories of hippies, plastic recycling and the ghost of New York City mayor Abe Beame and Felix Rohaytn, chairman of the Municipal Assistance Corporation which was largely responsible for bringing the city back from the brink of bankruptcy in 1975.
If you're not old enough to remember the 1970s firsthand, consult with a local baby boomer friend or relative or do some reading. There is plenty of work on the internet which does justice to the period. It was a fascinating time in which the United States - and the rest of the world - formally, albeit mostly unknowingly, abandoned the gold standard and entered the age of floating fiat currencies, the era which is quickly and painfully coming to a dramatic conclusion.
Highly entertaining and informative, the show aired on September 17, just prior to the death of Ruth Bader Ginsburg.
At the Close, Tuesday, September 21, 2020:
Dow: 27,288.18, +140.48 (+0.52%)
NASDAQ: 10,963.64, +184.84 (+1.71%)
S&P 500: 3,315.57, +34.51 (+1.05%)
NYSE: 12,602.54, +40.76 (+0.32%)
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