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Inflation and Destruction are Here – Epi-3339

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I originally spoke about how we were wound up perfectly for a false recovery that would lead to cripling inflation and economic destruction in 2009.  March 9th, 2009 to be exact.  If you go back and look we were sitting near the bottom of the market at that point.  People were claiming that the big one was coming, we were about to go full on economic collapse.

My assessment was totally different.  I stated that we were going to have what would look like a full on recovery except it would be a hollow one with no underlying reason for it.  They would simply print money, cut rates, pump liquidity into the stock markets and create a false boom.

Then the next phase would be a return to the great big drunken party and people would lean nothing from the awful financial hangover of 08-09.  Then over the next 10 years this recovery would prime the market for massive inflation, excessive debt and with no ability to cut rates further, no answer for the inflation that would come from it, the Fed would be screwed into a classic zugzwang.

Zugzwang is a term used in chess and other turn-based games to describe a situation where a player is put at a disadvantage due to their obligation to make a move. It means “compulsion to move” in German and is pronounced [tsuktsva].

Simply put there would come a time for the Fed to act and when it came there would be no good moves to be made.  Well this has all happened, if anything CoVid may have actually stalled it for a while then poured gas on the fire.  In any event we are currently screwed economically.  Our national debt is now 32 trillion plus dollars and it has already grown a trillion dollars since the “debt ceiling deal” made on June 4th, barely a month ago.

While the debt won’t continue to grow at a trillion a month, it will settle in at about a trillion a quarter.  The Fed’s attempt to stall inflation has completely failed and has only made things worse, but then again this is a zugzwang, there is no good move, only some that are less bad.  Oh by the way we also have 192 trillion dollars of “unfunded liabilities”.  These are bills we know we will have to pay and already know we will not have the money to cover.  Of that over 22 trillion of it is social security payments.

At some point this cycle must have a recokening and the pain that will ensue is going to be dramatic.  I also feel it will result in a full rebasing of the currency in the name of “we have to do something”.  Indeed we do and once again, the word of the day is zugzwang.

Join Me Today to Discuss…

  • What happened over the last 15 years
    • The market bottomed in Feb of 2009 and did not return to an ATH until Feb of 2013 (5 years) – link
    • But from the bottom forward it was really nothing but up until CoVid Hit
    • The national debt grew from 12 trillion to 32 trillion dollars from 08-23 (20 trillion of growth)
    • From 2000 to 2023 we had various bail outs, bank failures, etc. every solution was pumping in more money and lowering interest rates – link
    • Interest rates were cut to effectively zero and mortgages under 3-4% were common – link
    • Real estate boomed and people kept buying bigger houses
    • Credit card debt fell for a while and then came back with a vengeance
    • CoVid hit, first created a pause, then poured gas on the fire with stimulus checks and internal migration
    • The reality set in and the Fed did the only thing it could, borrow more and raise rates
    • Official combined inflation for the last two years is a combined 12.3% real inflation over 24 months is closer to 20%
  • What comes next
    • The clowns in charge start to admit that the dollar is going to lose global dominance
    • The sanction blowback continues and BRICS nations continue to gain new members (Gold/Commodity Backed BRICS currency)
    • The US will continue to absolutely refuse to rebuild our production and infrastructure and rely on China
    • The nation’s mental and physical will continue in terminal decline and those who stay healthy will be ridiculed and attacked, sick, fat and obedient people is the goal
    • American’s will run out of ways to “cut corners” and “squeeze dollars out of pennies”
    • The war on agriculture and meat will fully come to America
    • Anyone who adapts and finds success will be the target of blame (tax the rich, which never happens and never will)
    • This will all be used as a “we have to do something” excuse for a currency rebasement (likely CBDC)
    • The entire movement is toward a “rental economy” (own nothing and be miserable)
  • What can you do about this
    • Buy and self custody bitcoin (My Recommended Tools and Resources)
    • Create income streams
    • Build up reserves of all needs, money, food, tool, knowledge, etc.
    • When you buy things buy the best and longest lasting things you can buy and maintain them
    • Accept that the storm is here, it will be long, it will be bad, we don’t know how long it will last or how bad it will get
    • Do not live in fear, rather be motivated and seek opportunity
    • Find your version of “faith” (something to believe in tomorrow for)
    • Get in the absolute best mental and physical health you can
    • Get the absolute hell out of the flash point decaying cities and their beltway suburbs
    • Educate your children, get them out of the schools if you can
    • Plan for systemic failure and personal success
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