‘Well…it’s one, two, three
‘What are we fightin’ for?
‘Don’t ask me ‘cause I don’t give a damn
‘The next stop is Vietnam
‘And it’s five, six, seven, eight
‘Open up those pearly gates
‘Ain’t got time to wonder why
‘Cause we’re all gonna die.’
Country Joe and the Fish
The news yesterday had everything ‘dropping fast’: Reuters: ‘Fed’s Powell opens the door to higher and possibly faster rate hikes’:
‘The Federal Reserve will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the “totality” of incoming information suggests tougher measures are needed to control inflation, Fed Chair Jerome Powell told U.S. lawmakers on Tuesday.
‘“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” the U.S. central bank chief said in opening remarks at a hearing before the Senate Banking Committee.’
As we’ve been saying…the Fed has to raise rates and lower stock prices. It’ll keep at it until something goes very wrong. Then, when the going gets tough, the Fed is still likely to abandon its war on inflation. Soon, it will retreat, and conduct only rear-guard harassment operations. (On Monday, a businessman explains how the Argentine economy ‘works’ with 100% inflation.)
Money is our beat here. But the US’s financial system…and your money…face much greater challenges than just a bear market on Wall Street.
A friend sends this from the Argentine press:
‘Not sure what to make of this:
‘US Congresswoman warns Buenos Aires not to build Chinese fighter jets’
What to make of it? What in the world is the politician thinking?
We are exploring the events and trends that are likely to cause the ‘cluster’ catastrophe headed our way. Readers may sense some indignation and disgust in our tone; but ours is a prejudiced view. We liked the Old Republic.
Yes, of course, it slipped into sin more than once. Yes, it overspent occasionally. Yes, it made terrible mistakes and by mid-20th century had already bitten into the imperial fruit.
Way back when
But before 1971, no Congresswoman, no matter how dim, would have thought it was her job to tell the gauchos what to do.
Before 1971, the US’s money was still good. So was its reputation.
We remember when gasoline cost 25 cents a gallon, when we could get on a plane without a pat-down, and when we could open a bank account and get a free toaster oven, rather than a third-degree interrogation. There was no war on drugs, no ‘homeland’, and no ‘Homeland Security’…and no snoops reading our mail…or telling us what kind of kitchen stove we should use. And there were a substantial number of citizens, in and out of government, who still wanted to balance the budget at home and leave people alone overseas.
Yes, the US was, then as now, engaged in a pointless war…but at least there were people in the streets challenging it.
Today, the real ‘conservatives’ are all gone…the Democrats are all pro-war, Republicans too…and the citizens go along with everything — COVID Hysteria, war fever, debt, diversity, and dysfunction. The Fed says inflation should be at 2%? Sure, why not?
Citizens of an honest republic can decide for themselves when to go out of doors. But the subjects of an empire ask permission. They get bread; they must join in the circuses too.
But people come to believe what they must believe when they must believe it. If they were told to stand on one leg and recite the pledge of allegiance, they would do so.
Even fruitcakes eventually go stale. Empires reach their ‘sell-by’ dates too. Now in its corrupt and degenerate stage, at home and abroad the empire implements its Bad Guy Theory. ‘You’re either with us, or against us’, say Bush, Obama, Trump, and Biden.
Here’s an example. Ms Janet Yellen went to visit Ukraine. In her statement she made it clear that good and evil were butting heads:
‘Russia’s barbaric attacks continue — but Kyiv stands strong and free.’
Nor did she have any doubt about what side we are on:
‘America will stand with Ukraine for as long as it takes’
So easy. So simple. Good guys versus bad guys.
But what a bunch of morons.
More to come…
For The Daily Reckoning Australia