Important Economic Trends During Anarchy – Week 20

2020 – Something Big is Afoot.  Are You Prepared?

In a Swirling Maelstrom of Conflicting Data – Stay Focused

On my Sunday morning walk, I decided that being confused about what is happening around me is because I am playing checkers and God is playing three-dimensional chess.  In my youth I was quite good at chess and won some Boy Scout Troop Summer Camp chess championships.  But what is happening around me today is beyond my full comprehension.  It truly is “unbelievable”.  Toto, we are definitely not in Kansas anymore.

I also contemplated declaring myself to the non-existent office of “President-Elect of the United Sates of America”.  I decided I had campaigned almost as much as Biden, think I would have drawn bigger crowds, and I would have known where I was that day.  Of course, instead of working out of my basement, I have been working out of my library at home.  But I do not see that as a disqualification but rather a positive.  I can still read without becoming befuddled.  Unfortunately, I lack the Democrats’ ability to organize election fraud and the media are not my propaganda vehicles.  Perhaps I can bribe, ‘er pay them, with some designer ice cream and get their support.  No, Democrats do that but not us Clinger, Deplorable, Chumps.

The media are obviously extremely invested in Biden becoming President.  They think they have the power to anoint the next President.  However, our United States of America Constitution lays out a specific process for the actual votes to be counted and recounted to assure accuracy (Certification) with the final decision made by the Electors at a meeting which this year falls on December 15.  Without honest elections our entire system of government fails.  I have heard an explanation by a superb attorney that fraud would trump any vote Certification.  Cinch up your saddle.

It is normal for one party to accuse the other of chicanery.  However, consistent with 2020 there appears to be an unusual number of places including Virginia that have adopted Chicago’s behavior with an amazing vote by the dead combined with concerns over computer “glitches” and mail in ballots.   The definition of “glitch” is the use of a computer to commit fraud. On the conservative electronic media called Parler I have seen a number of Biden supporters bragging about using vote fraud to steal the election.  Some very prominent attorneys whose personal reputation is critical to their continued success have put their reputations at risk claiming fraud occurred and they will prove it.  All I can do is wait and cheer.

Mail in ballots marked only for Biden, none of the other races on the ballot, not in singles but by the hundreds of thousands suggests that someone was under pressure with a very short period of time to mark enough ballots to “Win”.  Speed was more important than the downstream races.  The quantity was also impressive, in excess of 600,000 in one state.  Other analysts have stated that 2.7 to 3.9 Million votes were converted from Trump to Biden by the Dominion Vote computers and nefarious software.  Did Terry McAuliffe give us the Dominion system?

There are only two facts about the recent election that I feel confident stating:

  1. Biden got 100% of the dead vote.
  2. Apparently dead Republicans do not vote.

The scale of the effort to defeat Trump only makes sense if there is something massive that the Democrats needed to cover up.  Effort is usually consistent with reward.  Money is the normal trigger, sometimes power, maybe both.   The attack on Trump started with General Flynn who had announced he was going to undertake an audit of the intelligence agencies.  It is logical to me that whatever needed to be covered up is located there and it had to be Billions of Dollars.

Since the Election Day, Biden has been having private conversations with his partner, Chinese President Xi.  Is that a violation of the same Logan Act which Biden recommended be used against General Flynn?  Yep.  Perhaps they called it a partnership meeting.  For some reason when it comes to Democrats, the sauce is never the same for the goose and the gander.

My prayer is that we Americans find out all of the facts.  Let the chips fall where they may.  I am exhausted with eating smoke and ready to address the source of the problem.  My guess is we will get some clarity the closer we get to December 15, assuming the Democrats do not scare away more of Trump’s attorneys by doxing them.  The Democrats already chased some away.  December 15, 2020, cannot come too soon.

In the meantime, global capital is now voting.  Since Election Day, the 10-year Treasury has gone up from approximately 0.65% to over 0.90%.  That is not a huge increase in nominal interest rate, but it is a huge increase mathematically, about one-third.  The increase becomes even more significant when one factors in that it occurred in the face of The Fed doing Quantitative Easing (QE) in a record amount of $120 Billion per month, a 50% increase over the rate of QE during The Great Recession.  Impressive.  Alarming.

Similarly, the U. S. Dollar has fallen against most currencies including Fools Gold a/k/a the Chinese Yuan.  Both of these trends suggest that international capital has begun to flee the USA.  China is benefiting.  Capital fleeing the USA makes great economic great sense as a Biden presidency would:

  1. End the push to re-shore our industries back from China thus eliminating both significant GDP growth and the potential of middle-class jobs for millions of young Americans;
  2. Destroy America’s energy independence thus making us more dependent on Middle East oil;
  3. Waste enormous taxpayer dollars on the Green New Deal which will be an economic disaster;
  4. Dramatically increase our debt to GDP with no valid plan for economic growth thus condemning the USA to inflation in a stagnant economy;
  5. Add into the above toxic mix the significant increases in taxes and energy costs for the average USA household plus the indirect costs of increased government regulation;
  6. In sum, there is a high probability of the USA being replaced by China as the Hegemon thus resulting in the USA becoming the equivalent of a Latin America Tin Dictatorship.

Based on his track record as Vice President, Bidens’s family will become even more wealthy via selling US assets to the Chinese joint ventures led by Hunter.  Perhaps Biden-Harris can finish hollowing out the USA.  That sound you hear is the flushing of the USA by Biden.  The Clinger, Deplorable, Chumps will have a tough time.  But that is not the concern of the Elites.

We continue to share with our clients the following scenario for a Biden-Harris Administration:

  1. The next nine months is already baked – a good economy;
  2. But nine months after the passage of the first Biden platform item is a Recession;
  3. The more items passed by Biden-Harris, the worse the Recession:
  4. Since the Fed is tapped out, the greatest probability is this Recession will be SEVERE.

The amount of cash sitting on the sidelines this year has increased from $4 Trillion to $5.9 Trillion.  The reason is simple.  Despite euphoria over the vaccines coming out of the chute from Operation Warp Speed, stocks and bonds are fully priced.    The increase in the 10-year Treasuries means whoever was holding 10-year Treasuries just lost a lot of money.  Cash does not bring any return but short term your principle is preserved.  That Trillions of cash may stay on the sideline until after the Biden Harris Recession.  Why catch a falling knife?

We are living in an economic “Bubble” created by the historic stimulus already coursing its way through our economy.  Per our data bases, in central Virginia the land market is active but price sensitive.  The residential land market is red hot because The Fed is forcing mortgage rates below 3%.  When either The Fed or capital flight out of the USA results in increased interest rates, the residential market will cool down.  Commercial land is in flux and industrial land is softening because under Biden there will be little re-shoring of our industries back to the USA.

History indicates that a great piece of land remains The Best investment long term.

“Trust in the Lord with all your heart, and do not rely on your own insight.  In all your ways acknowledge him, and he will make straight your paths.”

(Proverbs 3:5-6   New Revised Standard Version, Oxford University Press)

Capitalism builds wealth, socialism consumes it in self destruction.  I serve an awesome God.  Pray.  Hard.

Stay healthy,

Ned

 

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