[Editor’s Note: While social distancing, we find ourselves in a remote mountain cabin beneath the majestic Tahquitz Peak. This picturesque setting inspired today’s Economic Prism, originally published on March 30, 2018, as Searching for Tahquitz. Within it, you’ll discover profound reflections on America’s ongoing battle against the coronavirus. We’ve decided to dust it off for a fresh audience. Enjoy!]
Myths and Legends in America
Each generation carries with it a distinct set of myths and legends. Often, the lack of prior experience leads the youth to embrace popular delusions, regardless of how irrational they may be. Conversely, the older generation may cling to unrealistic expectations shaped by a reality that has since faded.
“Myths and legends die hard in America,” Hunter S. Thompson noted in The Great Shark Hunt nearly four decades ago. This observation remains relevant today, as America continues to be rife with myths and legends, many of which are destined to fade away. Some notable examples include: Continue reading
The area near the intersection of South Prairie Avenue and Century Boulevard in Inglewood, California, has seen a remarkable transformation over the past three years. The former Hollywood Park Racetrack has been dismantled and redesigned. In its place, the $5 billion SoFi Stadium is being constructed.
This state-of-the-art venue will serve as the new home for the Los Angeles Rams and Los Angeles Chargers, slated to open in late July 2020. The opening ceremony will feature a performance by Taylor Swift, just in time for the 2020 NFL season.
The vision for this property is ambitious. According to the SoFi Stadium website:
“This cutting-edge stadium reimagines the fan experience and will host a diverse range of events throughout the year, including Super Bowl LVI in 2022, the College Football Championship Game in 2023, and the Opening and Closing Ceremonies of the Olympic Games in 2028. Situated on the site of the former Hollywood Park racetrack, the stadium is the centerpiece of a 298-acre mixed-use development that features retail, commercial office spaces, a hotel, residential units, and outdoor parks.” Continue reading
“The bank is something more than men, I tell you. It’s the monster. Men made it, but they can’t control it.” – John Steinbeck, The Grapes of Wrath
Mass Dollar Debasement
The ultimate monster is rampaging across the landscape. The Federal Reserve, the institution charged with producing U.S. currency, is expanding its efforts significantly, albeit with a narrow focus.
Working tirelessly, the Fed, under Chairman Powell, is implementing what Minneapolis Fed President Neel Kashkari has termed “infinite cash.” Their singular goal is to devalue the dollar in an attempt to preserve it. The stakes are monumental, and the challenges are even greater.
The most monumental asset bubble in history, inflated by the Fed’s relentless access to cheap credit, has burst. Simultaneously, measures to contain the coronavirus have crippled the economy. The impending wave of job losses, bankruptcies, and economic devastation may surpass even the calamity of the Great Depression in the 1930s. Continue reading
“We’re not letting Boeing go out of business.” – Donald Trump, President USA
Something Stinks
On Tuesday, in anticipation of several trillion dollars in Congressional funding, the Dow Jones Industrial Average (DJIA) surged by 11.37 percent, marking its best performance since 1933. Some companies within the index experienced even more substantial gains.
For instance, Chevron emerged as the top winner, closing up 22.74 percent. American Express followed closely with a gain of 21.88 percent. But can you guess which company took third place?
It was none other than Boeing, the emblem of corporate financialization and favoritism. The company saw its stock close up 20.89 percent.
Truth be told, Boeing is facing dire straits. Just this week, Fitch downgraded Boeing’s credit rating to BBB. Furthermore, as per Bill Ackman, the head of Pershing Square Capital Management, “Boeing is on the brink [and] will not survive without a government bailout.” Continue reading
