July 8, 2020
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Stockman: The Fed's Unleashed "Speculation And Malinvestment On A Biblical Scale"

Stockman: The Fed’s Unleashed “Speculation And Malinvestment On A Biblical Scale”

AliExpress WW

Via InternationalMan.com,

AliExpress WW

International manRecently, riots broke out in many US cities.

Despite the riots and economic damage from the shutdowns, the stock market continues to grow.

Markets do not seem to reflect income, economic prosperity, or growth. What’s going on here?

David StockmanIt is pretty simple. The Fed has released the largest liquidity stream that has ever existed, and it finds its way into a relentless, massive bid for risky assets.

Since the disaster country’s disaster on March 11, the Fed’s balance has fallen from $ 4.3 trillion to nearly $ 7.2 trillion. That’s $ 32 billion a day, including weekends, Easter, and nationwide riots.

To make matters worse, at their June meeting, crazy money printers living in the Eccles building promised to continue printing $ 120 billion a month to buy U.S. treasury bills and other assets for an indefinite period of time. That should bring us to a balance of $ 10 trillion in less than two years.

This, of course, means that honest price discovery in Wall Street canyons is much more complicated than at the horn. We now have a supposed capitalist economy in which the most important prices in all capitalism — the prices of financial assets — are pegged, falsified and managed by the central banking agents of the state.

The result, of course, is speculation and improper investment on a biblical scale.

As for the first, now we are faced with the ridiculous spectacle of the IBO – or the Initial Bankruptcy Proposal – of the shares of the bankrupt Hertz.

Hertz shares are useless. He is under a pile of debt in the amount of $ 20 billion. – senior-level debt securities that are trading at 40 cents per dollar – and a greatly overvalued fleet of vehicles.

All this happens in a world in which airlines and business trips are crushed by more than 80% due to trends and will not return in the near future – as long as Dr. Fauci and the Virus Patrol chase the country.

However, the frustrated millennials who mess around and spend their minimal money on the Robinhood trading platform have risen more than 10-fold in the price of Hertz stocks after Chapter 11, prompting the main investment banking firm to offer underwriting for a stock offering of 1 billion dollars. instead of a debtor’s loan (DIP)!

It has never been so crazy before.

And yet, the empty suit that sits in the Fed’s top seat insists that all this is done for Main Street and workers, and, as Powell said in his June press release, the Fed doesn’t mean it at all. target price for assets; he just wants the financial markets to run smoothly.

What senaka is this fool thinking we fell from?

Regardless of whether they intend to do this or not, their massive injections of liquidity into the financial markets and the relentless application for financial assets financed by fiat loans have moved to the first 1% and 10%, which own 53% and 88% of the shares, accordingly, this is the creation of a financial system for the third – and most impressive – collapse of this century, which, in turn, will destroy the remnants of the wealth of the middle class.

International man: More than 40 million Americans are unemployed. Many small and medium enterprises will never open again. Many must survive not only a long lockout, but also the most serious riots in recent decades.

How do riots and halt go going to affect the main street?

David Stockman: This destructive combo comes from the most senseless, destructive act of the state in our time – if ever.

We are referring to large-scale quarantine and block orders that triggered instant economic heart attacks in large sectors of the US economy after mid-March.

There was no precedent in history for activity levels in huge industries, such as air travel, rapidly falling by more than 95% per night, or the restaurant sector, where open-table reservation was reduced by 80% compared to the previous year in a matter of days.

It is not surprising that in 11 weeks almost 50 million applications for unemployment benefits were received (taking into account the new federal benefit) – this figure is almost 32% of the 158 million employed Americans in February 2020.

In fact, even the explosions of the bubbles, the insane boom of the Fed never created the kind of depressive collapse that is happening now.

And yet his propagandists are a doctor. Fauci and Virus Patrol at the CDC, NIAID, WHO, Big Pharma, and Bill Gates Camarilla, combining funds, think tanks, nongovernmental organizations, and vaccine lobbies, have been selling big lies since day one.

Namely, COVID-19 is the modern equivalent of the Black Plague and distributes its deadly pathogenic microorganisms on a random basis among all segments of the population – young, old, healthy, sick and all the differences between them – with equal liveliness.

This is not even remotely true.

In the United States, there are 104 million young people under the age of 25, and at the end of May the death rate from COVID was 0.12 per 100,000 population.

That is, all the schools, bars, gyms, restaurants, cinemas in which they gather were closed by order of governors and mayors, but it would take a million million young people to produce only one death related to COVID.

And we emphasize that with the COVID part, because the CDC changed its coding criteria at the beginning of the pandemic, and now they code as “deaths of COVID” for almost everyone who dies in the hospital – even cases when someone arrives in the emergency room after post-mortem accident and positive coronavirus tests.

In comparison, there are 6.5 million Americans aged 85 and over in the United States, representing 2% of the population, but they account for 33% of reported deaths on May 30, which is 450 per 100,000 people.

Thus, the risk of death from COVID for what we call the nation of grandparents is 3,750 times higher than for the school-age nation in America.

However, mass quarantine orders are a universal attack on everyday economic and social life, when the obvious thing to do was to keep schools open, isolate, protect, support and treat grandparents, as well as great grandparents.

In fact, if you take the entire population of 52 million people aged 65 and over, they account for 81% of all deaths from COVID, with over 50% of these deaths occurring in residents of nursing homes and other long-term care facilities. In fact, the residents of the latter do not often visit bars, gyms, cinemas, offices, bus stations and factories, necessary, non-essential and others.

The general population should never have been quarantined.

Even among what we call the Nation of Parents and Workers, 83 million people between the ages of 35 and 54, mortality with COVID is only 7.0 per 100,000 people. That is, for this group, the risk of death from coronavirus infection is not much higher than with daily trips to and from work.

In short, the entire Lockdown Nation fiasco was a mutant social engineering exercise that would leave Main Street beaten and bruised for years to come – long after the coronavirus completed its infection cycle and succumbed to the summer sun in most parts of the country.

And that brings us to George Floyd’s uprising, which overwhelmingly consisted of those under the age of 35 who ran out of house arrest and were damn crazy about their now significantly diminished prospects in life – which were not so attractive in first of all.

Just keep in mind that the vast majority of leisure and hospitality industry employees are under the age of 35. However, the 17 million jobs reported by BLS in the sector in February were down to 8 million by the end of April.

To make matters worse, average hours of work also declined, so at the end of April we had an industry that shrank to the level of October 1979 in terms of actually deployed hours of work and salaries released.

Thus, the authorities sowed the wind and shook the whirlwind, but on such a gigantic scale to make the future more fraught than ever.

In the United States, there are 80 million people between the ages of 16 and 34, and over the course of a long, hot summer ahead, the vast majority will be unemployed. It does not take too much imagination to see that the current so-called uprising of social justice only develops a blast wave of steam.

International manDuring the COVID block, the governors of Trump and the Democratic Party were at odds. We observed a similar trend with recent riots.

How do you see this affect the presidential election?

David Stockman: This will only exacerbate the red / blue separation like never before.

Trump will position himself as the country’s super-sheriff, and Dems as defenders of the cavalcade of victims – some real, albeit mostly politically invented ones – who deserve help from the hard hand of the state.

In other words, the upcoming campaign will be a contest between the form of law and order of the big government by Trampian and the liberal-progressive-socialist version of the leviathan state. And what will be crushed by the clash is the Constitution, fiscal solvency, federalism, free enterprise and personal freedom.

The fact is that the agenda of neither of the parties has a legitimate place in the halls of the government. The policy of identity and the racist agenda of Demov is simply an arrogant abuse of the democratic process with the aim of gaining and retaining benefits, privileges and powers in the public service.

But Donald’s law enforcement demagogy is just as bad.

The solution to the problem of uncontrollable riots in the blue states and youthful tricks, such as the six-block autonomous zone in Seattle, is federalism. Thus, law enforcement is a state and local function that should never have been upgraded to the federal level.

We need to get rid of the FBI, DEA, ATF and the rest of the law enforcement alphabet of bureaucratic patrimony by repealing the drug war and other state nanny laws.

There is no reason why the law enforcement agencies – protecting the lives and property of citizens – could not be handled by 17,000 law enforcement agencies operating at the state and local levels.

And if they don’t do their job, well, that’s the purpose of the election, to rectify the situation, and not some Twitter Bully from the Oval Office.

And if the elections in their deep jurisdictions of the Blue State do not reach the goal, they too can find a solution that does not require sending the federals from Washington. That is, people and businesses will vote with their feet, and in the end, even those like Governor Cuomo and Bill De Blasio will receive a message.


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