The market has been flirting with lifetime highs, and as such, a particular permabull website that I call ZH urged their readers to “buy every dip“, since – – well – – they’re permabulls. Two days does not a trend make, but it’s heartening to see that equities are starting to disintegrate again.
But why? Simple. The world is realizing that the United States is hot garbage. Its leadership. Its future. And, most definitely, its debt.
I would like to suggest something totally outlandish. Bonds have been in a bear market for half a DECADE (oh, how I wish I could say that for equities!) That’s enough punishment, right?
I don’t think so. On the contrary, I would like to declare that the pink zone on the right portion of this chart portends another epic collapse.
And what happens when bond prices go down? That’s right. Interest rates go up. Way up.
That would be a problem, for our debt-addicted country. We are headed for complete bankruptcy and subjugation, all while men with punchable faces such as Mike Johnson lie through their teeth about how great it’s all going to be, particularly since tax cuts for the rich will pay for themselves. For real.
Look, the thing is that CBO projections already predict disaster, and that disaster ASSUMES a healthy, growing economy with NO problems.
Let me ask you this: did the CBO projections in 2000 incorporate the 9/11 attacks, the financial crisis, and Covid-19?
Yeah, I didn’t think so.
The country is in horrible shape. This is the Fourth Turning. It’s going to get vastly worse.
