Mish is exactly right here. Mises said, “money is the commodity where the production of which provides no net benefit.” All modern economic theories ignore this basic tenet of money.
Why we are headed for a crash is the fact that each of them are wrong because there is a limit to which:
- Keynesians can pay people to dig ditches and fill them in
- You can print spending by printing more Monetarist money.
- Investors believe the Monetarist lie that ‘we owe the debt to ourselves.” Otherwise why not issue debt ourselves and cut out the government middle man, and pay ourselves the coupon?
This is why GDP is a fundamentally flawed statistic. It talks about the quantity of spending not the quality of it. Eventually, the economy, like Mises’ Master Builder runs out of real bricks to build with and the whole thing has to be torn down and started over, once it has been revealed that the pool of real savings is inadequate to support the economic activity.
Mish’s list is excellent. I’ve read the first four. To this I would add Mises’ Socialism and Hayek’s The Road to Serfdom to get an understanding of the sociological effects of these cancerous theories.
This is why cryptocurrencies are booming and gold is building a base for an explosive bull market. Bitcoin blew past resistance at $3000 like it wasn’t even there. The others are on the move now as well. Ethereum back over $250, up $70 in four days.
The limits I describe are resulting in a catastrophic collapse in confidence in the institutions that manage money and the society at large.
The push to impeach Trump is a dangerous game because it is stoking the people who voted for what he offered (not him per se) to a level of despair that change can happen peacefully.
And when that happens, when peace isn’t seen as an option, violence is. As Gerald Celente puts it so eloquently, “Why people lose everything, they lose it.”
This is happening in Venezuela right now. If the #DeepState succeeds in ousting @realDonaldTrump, expect the same. pic.twitter.com/HC7wBOc0ys
— Julian Assange 🔹 (@JuliannAssange) August 4, 2017
It is imperative that you prepare yourselves now for the probabilities rise everyday that something ugly is about to happen.
Become a Patron! and for just $4 per month become one of my Guardian Dogs, those interested in helping people make sense of a world slowly going mad. Guardian Dogs get access to the Gold Goats ‘n Guns Private Blog and a head start on the upcoming Gold Goats ‘n Guns Newsletter.
You must log in to post a comment.