The object of power is power.
– George Orwell, Nineteen Eighty-Four (1949)
Russiagate is just a means to an end: Taking out the Great Disruptor is necessary to preserve the Duopoly.
Indeed, the Donald primary utility is undermining the Wall Street-Imperial Washington ruling class. They don’t like it, so they’ve mobilized the Deep State.
That makes for a fascinating form of asymmetric warfare inside the Beltway, because the Tweeter-in-Chief has mobilized his base of Flyover Americans. They like that he flouts old-school ideas of the “Imperial Presidency.”
And can you imagine Main Street gives a good gosh darn about Stephen Moore and Herbert Cain? What did Ben Bernanke and Janet Yellen ever get working Americans?
The ferocity of the response from the mainstream financial media’s pedigreed commentariat has already sunk Cain’s nomination to the Board of Governors of the Federal Reserve System. And Moore’s candidacy will have to survive withering criticism – I’ve leveled my own…
The headline objection is that neither of these guys is a professional economist. Cain has been CEO of a major publicly traded corporation, though. And Moore… well, Stephen is a decent person.
The subtext is that their views are way outside the consensus and that they admit to being conservative. To that, I say, “Huzzah!”
The single greatest threat to capitalist prosperity in America today is the insidious, in-grown Keynesian groupthink of the monetary central planners who run the Fed and dictate its policy narratives to the echo chamber via Bubblevision.
This unelected guild has transformed the central banking branch of the state into the handmaid of the Acela Corridor. Its easy money feeds Wall Street speculation. And it provides the financing for Imperial Washington’s domestic and foreign excesses.
It’s also become the font of a self-serving fantasy that’s sure to devolve into nightmare…
This fantasy holds that all the rot exposed by the Global Financial Crisis and the Great Recession is fixed. Its central conceit is that the American economy has come bounding back to new heights of prosperity in glorious aftermath of those dark days.
Here’s the truth…
The Global Financial Crisis never ended. Monetary central planners have, in fact, doubled down on the scourge of debt and the plague of money-printing that caused it in the first place.
Whatever gains and growth we’ve seen have accrued to the benefit of speculators in financial assets. They certainly haven’t been felt by those who provide labor and enterprise.
In economic terms, it boils down to an unsustainable and unstable regime of staggering debt, recurring bubbles, speculative excess, and sweeping malinvestment. These metastatic deformations have caused the growth rate on Main Street to slow to a crawl.
That’s even as massive inflation of financial asset prices has fostered the worst, most artificial maldistribution of wealth to the top 1% and 10% in modern times.
It’s all wrong, this Keynesian model for central banking – completely, irrevocably, abysmally wrong. He’s not necessarily going about it in a straight-line assault. But the Great Disruptor is taking aim at this regime.
And it’s a great good thing.
In the Meanwhile…
Desperate times call for… “common sense” measures.
And these are desperate times… Markets are corrupted by monetary central planning. They’re confused. And the road back is going to be treacherous.
We’re looking at a major re-pricing for all financial assets. And thousand-point intraday or day-to-day swings are part of that equation. Those can be frightening… for “buy and hold” investors.
I have a different approach, one that combines strategy and tactics into a plan flexible enough for you to survive and thrive amid the coming chaos. It’s called “The Stockman Model.”
All we’re after is a little stability, perhaps a chance to pocket a windfall when opportunity presents…
To common sense,