Why is it taking so long? No, not the turkey cooking in the oven, but the collapse of the economy. Perhaps it is the smell of turkey that gets my brain thinking, as it did at our 1st thanksgiving dinner last Saturday when I wrote about canaries. Divorce is a bitch! So as we await our 2nd dinner, my fingers started typing...
When the subprime mortgage climaxed with the Lehman crash as I was learning how to trade, I was ignorant, thinking that politics still mattered, worried about how I would retire, wondering how to trade the markets, which I no longer trusted to be bullish. (Looks like I picked the wrong year to learn how to trade.) I did not understand QE as it came out and especially did not see metals as a safe haven. Once I noticed that metals prices were rising, I simply bought some to get in on the bullishness and make some fiat. The rest is history and somewhere along the way, I became persuaded that our markets were irreparable, held together with coordinated central bank intervention and would eventually collapse.
Many of you here were instrumental in my education, as well as many who no longer frequent the site.
So I have been sitting here this morning racking my brain (and procrastinating grading essays) trying to recall movie where the final fight scene take place in a location that is falling apart as they fight, causing the combatants to actually cooperate in holding the setting together as they try to destroy one another. That appears to be the reality of our current financial system falling apart underneath us as each country grapples for gold, devalues currencies, sets up sanctions, cuts deals with oil producers to hurt others. But all the while, they loan each other funds through overnight discount windows, purchase bonds via proxies, take turns pumping fiat into the system, collude to keep stocks high and metals low, and let a cabal of mass media oligarchs send out their town criers and lie to the world population, repetitively, that “All is well!”
The West is grappling with the East for control of the world. But the cannot let the world crumble while they fight. The CBs are cooperating at some level to hold it together while they grapple for ascendency. I argue that it’s inevitable that the East will overcome, that the West is desperately trying to hang on while the patient Chinese continue to make subtle strategic moves. But China and her allies don’t want to inherit financial control of a world full of wrecked economies.
At some point, the West will cave in, accept their inevitable defeat, declare loyalty to the East and work to establish a stable system.
Perhaps the musical chairs of national gold holdings may bring a sudden end—not to mention war in Ukraine, ramifications of oil prices, and probably a dozen other threats to economic stability. And now the opposition leader of France is calling for return of their gold--they hold 2835 tonnes in various locations. Wow! 20x what the Netherlands just had repatriated.
But nobody wants the system to collapse and the CBs and Media have much power to keep it alive as they try to reconstruct it.
Which metaphor is most accurate? A collapsing stage on which the antagonists fight? Musical chairs of gold ownership? Or the Pirates of the Caribbean maelstrom that was sucking down the losers as they fired rounds at one another? I am certain the metaphor is NOT a sunny road into the future where “hope” motivates us to achieve our liberal-socialist dreams of equality, prosperity, and an easy retirement.
Perhaps we will not see a collapse after all. Perhaps they will be successful in keeping economic activity intact as the power shifts. Well, if these guys have any say in the matter, whatever turmoil we go through will be under the thumb of whichever government is in power in each nation. Yeah, that sunny road seems to be blocked.
ONe more thing...
Since Craig is probably scrubbing bathroom fixtures and readying his home for the onslaught of relatives for the weekend, so why not give him a break. But we do require our daily reading material. Have you written an Epic Post in the past couple of years? Have you read one that you wanted to give a hundred hat tips? Well, somebody posted a link to a post by StevenBHorse the other day that I enjoyed reading immensely. And I had NOT seen it before.
I bet there are more epic posts we have not all seen, or need to re-read.
Send me a PM or post a comment here with a link to an epic post from the past that we would all be well served to re-read or read for the first time. Yes, you can send me your own comments—no shame in recognizing when you have produced a work of genius. What? 50+ hat tips to qualify? I’ll reprint the best ones in a Main street article by Saturday morning (links to all others as well) so we have something thoughtful to read and discuss over the weekend as we come out of our tryptophan induced stupors, and so Craig can have the weekend off.