Ok, so, when your buddy is a doorstep
Step over him and coat
When your mother is a French press
In a café called no hope
Your stomach aches
On benches where buses never arrive
Now tally up the misprints
And tell them you’ve been warned
– Tell Them Told You So, by Swingin’ Utters
The Most Challenging Job in the World
In 2020, nothing seems to surprise us anymore. Lockdowns, pandemic panic, and political turmoil have all become expected occurrences.
As this piece is being penned, it appears that Kamala Harris may be on the verge of becoming the next President of the United States. Let us take a moment to congratulate you, Ms. Harris. You have just taken on a role that many would describe as the most difficult job in the world.
These days, the perks of being President are hard to come by. Ask former President Trump. The hours are grueling, the salary pales in comparison to that of a corporate executive, and you are constantly surrounded by dubious politicians.
They chuckle at your dull anecdotes, flatter you with what you want to hear, and hope to be rewarded with luxurious Cabinet positions because they supported you in some unremarkable city.
Additionally, it seems that the towels on Air Force One are reminiscent of those found in a budget motel—scratchy and uninviting. Aside from being a judge of unpleasant odors, it’s hard to imagine a more thankless position than that of U.S. President.
Your privacy is almost nonexistent. Global news outlets analyze your every expression, often concluding you must be mentally unwell. You can hardly walk through your own home in a bathrobe at night without it making headlines.
Our advice to Ms. Harris: consider stepping away while you still can.
The Rise of Fake Money
By all reliable evaluations, Harris faces an uphill battle. The impending debt crisis in Washington remains unresolved, and no President appears willing to tackle it.
For more than half a century, Congress has failed to balance the budget. Time and time again, Washington’s spending has outpaced its tax revenues, leading to an ever-growing public debt. The situation has escalated beyond any hope for reconciliation.
In 1971, when President Nixon ended the gold standard, the national debt stood at $398 billion. Fast forward to 2020, when the deficit alone reached a staggering $3.1 trillion. As a result, the national debt has skyrocketed to $27.2 trillion. When factoring in the unfunded liabilities promised over the years, including Social Security and Medicare, we face an astronomical debt load of $155.3 trillion.
For decades, these annual budget deficits were financed by both domestic and foreign investors purchasing U.S. Treasury notes. Today, however, as the empire falters, the Federal Reserve has become the primary buyer of Treasuries, creating new credit out of thin air. Such coordinated fiscal and monetary policies by the Treasury and the Fed perpetuate limitless government spending.
Senate Majority Leader Mitch McConnell, following his re-election for a seventh term, has identified passing a new economic stimulus package as his top priority before the year ends. This proposal may include bailouts for state and local governments. Should this package proceed, it would almost certainly lead to a 2021 budget deficit exceeding $2 trillion, funded by the Fed’s phony money.
On Wednesday, Wall Street celebrated these prospects, sending the Dow Jones Industrial Average (DJIA) soaring by over 367 points. The following day, the DJIA rose another 542 points. What does this signify?
The Ongoing Struggle in America
Ultimately, the challenges facing the American economy are largely the result of government policies rather than market forces. Over the last half-century, as the Fed and the Treasury colluded to manipulate the financial system, wealth has become increasingly concentrated in the hands of a select few. This trend has been so pronounced that it is impossible to overlook, particularly during the decade-long expansion from Q2 2009 to Q2 2020.
The current economic downturn, which many economists have yet to acknowledge, will exacerbate this disparity. Public resentment towards wealthy elites is more intense now than in past economic cycles, and this discontent will likely intensify as people realize that stimulus measures are illusory.
Widespread discontent could culminate in a financial crash, leading to an economic collapse and ultimately a societal breakdown. The central government may then face the consequences of its own decisions.
Instead of embracing smaller government and sound financial principles, this unrest will provide Washington the perfect excuse to expand its central authority. Harris may promise to resolve these issues while inadvertently widening the gap between the wealthy and the poor.
The size of government will expand further, even as frustration and disappointment simmer, sparking mass movements with unclear objectives. Many millennials, who lean toward progressive solutions, will call for large-scale governmental responses to challenges created by big government itself.
Yet life carries on. America’s ongoing struggle and discontent persist. The currency debasement strategies aiding large government and failing corporations—often referred to as the reflation trade—may temporarily boost stock prices. However, these same policies are devaluing the dollar, effectively turning your savings into worthless paper.
In conclusion, neither Harris, Trump, Biden, Obama, nor any politician entering this chaotic landscape stands a chance of overcoming the torrent of challenges. It’s a reality we may dislike, but it’s one we cannot ignore.
At the end of the day, nature will take its course. The current turmoil in America is something we must weather together.
Sincerely,
MN Gordon
for Economic Prism
Return from America’s Recline and Flail Must Go On to Economic Prism
