The Announcement The President of the United States will make a speech outlining the steps which must be taken to “”save the world.”” Just as the stock market enters a genuine bear market and selling accelerates and can’t be controlled, The Federal Reserve of the United States will announce a stock buying program to “”save the world.”” There will be bi partisan agreement that this needs to be done. A growing number are realizing that the economy of the United States is highly unstable. Unstable is not a strong enough word. The United States economy is doomed. There is no way out of a collapse. What can be done?
With respect to avoiding a collapse, absolutely nothing can be done. Who bears the burden of the collapse is a different issue. Who will bear the burden? That will be you and others just like you. What about you who live in Europe, Asia, the Mid East and Russia? You will be impoverished as a result. Economies in each country are failing for the same reason as is the economy of the United States. In every country in the world today, government is used as a tool to rig markets and enrich those with political power.
The harm to you is not malicious. It is incidental but it is harm none the less. The process of using government to guarantee an elevated lifestyle for the privileged over time, destroys the free market system and destroys the lives and opportunities of others who have no advantage. What happens, when a cow is milked for more than it is worth? It doesn’t produce anymore milk, at least for a while. The process and result of destroying an economy with political power is similar.
The public will be expected to absorb the losses of the elite. You can count on it. Here is how it will play out. The stock market will accelerate to the downside. As the slide begins, every effort will be made to force it back up. When key stocks are hit, others will get organized support to minimize the effect on the averages. Central banks are heavy into what we can call anointed stocks. Central banks buying stocks really is top down socialism and nothing more. Central banks are likely to buy more of their mistakes in order to avoid looking foolish.
The American public will be expected to let the experts take over because only they have the knowledge and expertise to right the situation. Like the TARP bill of 2008 and the quantitative easing that followed, the government action will end up saving the world’s elite from experiencing any loses while the rank and file suffer through the greatest depression in the history of the world. Sadly, the public will largely buy in to it.
Long term, they will destroy everything they touch. Fraudulent accounting will continue generating the best possible earnings that can be announced. Short selling will continue to be encouraged and short squeezes will continue to be orchestrated. We have seen this for decades. However, for now, this is all a mature political agenda. The goose that lays golden ages has indeed been killed and their will be a horrible reckoning.
When it is clear that the stock market cannot be saved, the announcement will come. A few trial balloons will be launched first to see how the public responds. If the response is negative the dialog will continue until the public response improves. The announcement will be that the Federal Reserve will abandon its clandestine purchasing and announce plans to buy stocks outright to “”save the world.””
Chances are good that one step will be to nationalize certain central bank favorites like Social media and others which are useful for formulating and managing public opinion. They are all good candidates for government ownership. Completely regulating social media constitutes nationalization. The public may or may not support this. It will be done regardless. One longstanding principle in government is that forgiveness is much easier to get than permission. In 2008 TARP was passed over the loud objections of voters. Guess what? They passed it and they were forgiven. They will go back to the well another time.
The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.
Visits: 3
