Distorted Reality

It shows you what a distorted reality we are all in when it is thought to be a good thing that the government is giving away “free” money to everyone.

When the sugar high wears off after this latest round of the dole, the reality of our dire economic situation, with persistent high unemployment, will sink in. That’s when the Federal Reserve-induced stock market rally begins to unwind. You won’t want to be in it when that happens. The stock market takes the escalator up but the elevator down, as the saying goes. When there are no buyers and all sellers, you won’t be able to even get into your account to make sell orders.

Biden and the Left-Wing Dems

Bearish

I’m bearish on the economy because I think this coming Democratic administration is guided by ideology and much of what they believe undermines business development and kills off jobs, so we will get what we got from Obama — a federal government that’s neutral to hostile to business with policies that unintentionally limit or even reduce jobs growth. Exactly what a stalled economy doesn’t need. At some point, this will show up as a sharp decline in the stock market, perhaps even a prolonged recession.

It may well be a good idea to start to invest elsewhere than in the US, as the US, so deeply divided politically and so disrupted economically, may well be a country in serious long-term decline. And add to that that asset prices like the stock market and the housing sector are seriously overvalued.

Biden’s Dumb Stimulus Plan

Keystone

Canceling the pipeline is another jobs-killing measure by our new president. This at a time when the unemployment rate has not recovered, but may be getting worse again. Fairy tale economics from this Democrat. Raising the minimum wage another jobs-killing measure, especially in states with lower cost of living.

These Democrats are ideologues. Reality isn’t an issue for them. They do what their ideology dictates — whatever the consequences.

Biden’s Dumb Stimulus Plan

Small Risk

The CDC recently put out information saying that the risk of the virus being fatal is very small for people younger than 60. The risk jumps for people in their 60s, and really takes off for people in their 70s. So it would seem reasonable that people less than, say, 45 years old should all go back to work since their risk that this virus could be fatal is minimal.

China

Jumping Into A Puddle

If people don’t start to go back to work soon, despite the obvious risk, we are going to be looking at a depression with a capital “D”. Damned if you do; damned if you don’t. Sometimes in life there are no good choices but you still have to decide, like that famous photograph by Cartier-Bresson of a man jumping into a puddle.

Death Rates Compared

Employment

All the employment gains since 2008 have been erased totally, in just a month and a half. Yet the market keeps going higher. Won’t last. Hard times are coming. There’s a wrecking ball going through state and local government budgets. The virus was just the pin that popped the bubble — the bubble was there all along, fed by easy money from the Federal Reserve. An unproductive, debt-ridden economy with market prices inflated to the hilt. When this thing collapses, it is going to be epic.

Bale Out Nation

Gainfully Employed?

How many of the wage slaves out there are going to realize that they kind of like not having to work?

Before this pandemic fiasco was upon us, the number of gainfully employed in the US population among adults was 60.8%. I suspect that after the fiasco, that number will shrink due to the above-mentioned reaction — some people will find being unemployed to their liking.

Bale Out Nation

Consequences for China