Coping: Sentencing Week for World

It was obvious looking at the emerging Globalist framework while doing the masters in the mid 1990’s, that the handwriting was already on the wall.  Forensics had been done, evidence sorted and a jury empaneled.

The poor were out-screwing the well-off (and still are), there was a ceiling evident in personal consumption, there had been no “peace dividend” from the Cold War ending.  And, eventually, all the players would go bankrupt.  In stages.

The “convictions” of multiple counts of economic fraud were presented, variously, at the market lows in 2002-2003, the 2008-2009 bottom, and I expect, again shortly.

Is shortly 6-months or another two or three year rally?  That’s the only decision requiring any deep study.

The fundamentals were (and remain) clear:  We have allowed a world to evolve where the value of human labor fall like a rock.  Jobs have been either outsourced to the most miserable of the  Third World shitholes to crater unit labor costs, or first machines, and now automation and robotics is (in baseball terms) “on deck” to knock jobs out of the park.

We’re in a race with ourselves to become obsolete.

Every ask yourself “Who do I know personally that’s living happily ever-after?”  Damn few are and there’s a structural economic reason:  Our economy only has one mode.  It is either growing or it’s over.

Structurally, we see the “best and brightest” giving up on the future, save a handful of ultra-techies.  The rest are tying their tubes, visiting Dr. Snippet, going gay, lez, or somewhere else.  Because the notion of traditional nuclear families was dashed on the rocks by the unholy left in education supported by the (communist) global elites – the real manipulators. All billionaires are equal, don’tcha know?

The global “shop-keeper economy” is not-yet dead.  Even so, there have been numerous financial 9-1-1 calls and the patient has congestive economic failure. For now held steady by periodic transfusions of cash to the elites.  A billionaire’s tax at the higher (functional) level.

But, we can see how this may all end badly.  As outlined last week, we have a world ruled by an interlocking management team of self-made billionaires who have established a kind of “global communist détente.  Seems the more money people make, the more liberal they become…generous with other people’s money.

It was in the news again this weekend – with Soros whining about Trump and how he’s upsetting the “club” which is busily trickling-down excess regulation and socialism while stifling personal freedoms and diluting American core values (hard work, ingenuity, innovation, and a strong independent streak) as fast as possible.

Which gets us to Sentencing Week.  Starts tomorrow.

When we chatted Friday, it was fairly clear that the market this week would either break out – going to new highs – or we would begin a terrible third leg down.  The first leg down was January-February, and we have been in what looks like a corrective Wave 2 bounce, since.

There are two ways “sentencing” could go at the extremes.

On the downside – and this argues for a mega-crash now without the luxury of a few more years to prep – we have the makings of a drought, and economy that will grow mostly through improvements in exports to bring down both the balance of trade and budget deficits.  The Mueller “fishing and hookers” charade will eventually entrap someone who will -(to avoid jail)); mention Trump or his direct reports.

Should this be the work-out, then our Seven Major Systems of life may demand consideration.

Housing:  In the event the economy hit a year or two long slide, do you have a place to live?  Somewhere that you could safely rest without being on the hook for rent or a house payment?

Food: Do you have a budget plan that will keep putting calories in the family despite the cost of food perhaps doubling, or more?  OPEC is trying to drive up prices, and while the drought has local cattlemen downsizing herds, capping meat prices for now, in six months to a year, prices could skyrocket.

Transportation: Silly to ask, but do you have a care?  Have you looked over your auto loan docs to see if the finance people can come after other financial assets (savings, real estate and such) should you have to default in the worst case?

Communications:  Suppose just for a minute, that due to trade conflict, hackers are given embedded code to hack backbone routers on the Internet.  How do you handle conditions like stock trading, banking, and so forth?  What is your cost to cancel cell, c able, and other non-essential communications?

Environment:  Are you able to go 6-months without going to the store for a roll of toilet paper?  A read of the Russian experience with collapse hints that might be an interesting investment.  Along with heritage veggie seeds, perhaps a ganj seed or dozen, plus a sewing kit to keep your clothes patched.  Got “Shoe Goo” and a fresh set of work boots?

Energy: Have you added to your home’s insulation?  I was running figures over the weekend and despite the drought, we are still – on average year to date – down about two degrees from past years.  Hit and use the “custom date range” under the history tab to compare each of the past five years where you live.  The answer may surprise you, but as we’ve warned, global climate change has been going on since the Laurentide sheet withdrew.  What IS new is that (like sexual variance marketing) selling “the weather” is another sure-fire sign just how bankrupt and “out-of-growth” our economy really is… Driving – by looking in the rearview mirror -doesn’t make sense to us.

Do you own more solar panels that we do?  Travel less?

Finance:  Last, but not least, if the week were to go very worst case and jobs growth reverses, do you have enough savings (the you can get to) to buy off the government from whom we all “rent our land?”

Shocks most people to put it this bluntly, but one of the biggest swindles in America was the transition from free-held, fee simple, outright ownership to allowing counties and states to tax property ownership.  Which, if you haven’t figured it before, makes their “ownership right to collect rent (taxes) superior to yours.

Sum all these basics up and, as my friend Gaye Levy and I wrote in a book on topic several years ago, it’s time to start planning: 11 Steps to Living a Strategic Life: A Guide to Survival During Uncertain Times.

Or not.  There is the Nanny State government, isn’t there?

Now the Good News

The odds are a bit better than 50-50 as we see it, that we will go on and hit new all time highs in the market over the next two years, or so.  A 10 percent downside, maybe, tops.  If more?  That an OH S**T! moment.

We don’t think the Consumer Price Index – due tomorrow – will panic the world.

We think the Fed may be done raising rates *(and selling off troubled assets purchased in the 2009 debacle to bail out the bankster class).  This being the case, 2 percent or 3 percent will not work as a long-term inflation target because it is still too low.  Pension funds will still blow up under such a regimen.

We expect what will have to happen is retirement plans that go bust will just roll into Social Security and the assets tossed into the (misnamed) Social Security “Trust” Fund.  This could have a dilution effect on pre-existing SS recipients, but what are you going to do when defined benefits plan resources aren’t there to be distributed?

The good news for federal retirees, is that even with pension troubles, they will continue to be treated royally.  Their unions have enough clout even now to be a major force in DC.

With CPI tomorrow, Fed decision Wednesday, Inspector General report Thursday, and God knows what the Trump bashing post G7 will turn into, this is a great week to pay very close attention to details. Mueller-something Friday?

A major break to the upside and we have 2-years on parole.  Time to get into personal financial rehab and gin up our options for each of the physical support systems.

A break to the downside – more than 10 percent, or so – and the clock may already have run out.

All rise!  The Court of Economic Sentencing is now in session.

Write when you get rich,

20 thoughts on “Coping: Sentencing Week for World”

  1. Always be prepared. I’m working 60-70 hours a week and it still kicks my ass that I have to pay $85 for a rank of gas at the pump. I dont drive a Prius. I drive a lifted Nisan Titan 4X4 on 35’s. Only have 18 payments left.

    What’s killing me is daycare and child support costs. I actually pay more in child support and daycare than I pay for rent. Lol

    But my littlest one starts Kindergarten in the fall and I timed it so that, when she hits first grade my truck will be paid off and daycare will drastically go down and I wont have a truck payment. Truck had only 120K miles on it and it should go for 300-400k miles. Get my money’s worth.

    Saw bit coin is takiening a beating again. Will go look at the futures.

    Afa the political road show it’s just WWE wrastling. Just replace Vince Mcmann with the Fed boss. Just good entertainment. But that is it. Lol

    • Boy tell me about it. I feel your insurance a cheap one for a thousand a month your only allowed to see a doctor three times in a year..the next one up is eleven hundred. But you can’t leave if your sick you have to be seen there and except for the fifty dollar co pay they don’t start paying till 7400.00 is paid out. They do cover tests and x rays the cheaper one doesn’t. The standard pick your doctor and if you get sick on vacation you can be seen is sixteen hundred a month per person with the other company here its two hundred more per month.
      Daycare for two toddlers is better than a grand a month.
      Personal income tax about 1800.00 a month. I usually have to pay in. Groceries 300.00 per person a month and prices are increasing. Wages aren’t

      • The wife sprained her ankle..the knee walker they rented it to us. The cost was twice what you can buy one for. Well she’s going to need it longer so I bought one. Heck ill let the kids play with it later.
        The cost of the sprain it isn’t quite up to five grand so far but its getting close.

  2. This is what has always worried me. When TSHTF and cash is short or gone and bank accounts are inaccessible – how do you pay your state and local taxes, let alone Federal? What happened in Greece? Argentina? We know about Venezuela’s socialists. I don’t think they’ll be accepting a bag of walnuts like Atticus Finch. Is the state just going to wind up owning everything and divvying it out to the highest bidders … China? Guess that’s when ammo becomes more valuable than gold.

    • That’s when all the rurals citizens take their guns to town.
      That’s what happened during the last depression the people went downtown because they couldn’t pay their taxes because the bankers close things down and tried to starve the people and run them off the land which state succeded in lots of areas but this area they didn’t because they the people threatened to remove all in city hall physically . records and pictures of this happening in Tennessee. When bankers get out of control and your state representatives and police get out of control and then the local County and City gets out of control people did take matters into their own hands in order to return to normal after agreements were made.

      • Sorry to blow your ‘historical/fantasy’ bubble, but the authorities now have greater ‘fire-power’ then in the 1930’s. If someone were to be so foolish as to come armed to contest ownership of property, many police departments would find just cause to react to the threat.

      • Sounds like a “Jericho” moment. Never really got into that TV series but might have to revisit it some time. Today, however, everything’s on computer and it’s backed up on some cloud floating over Timbuktu. Don’t think doing away with paper records will help much.

        I remember the story and movie about the revolt in Kentucky or Tennessee regarding some local election after WWII. The combat trained vets assaulted the Sheriff’s station with weapons from the local armory to get the election boxes back then cleaned and replaced the weapons when it was all over. True American freedom fighters!

        Luckily we “own” all our land but the tax situation is what always twists a knot in my gut.

  3. Because in those days majority of the population in these areas the Bible belts went to church and that’s where they organized themselves with other churches to override the Crooked government in their cities

  4. I read somewhere this week that the easiest way to make $1MM is borrow $1MM and have someone else (renters) pay it back for you.
    I have a version of G2. A2 dropped out of a physics/engineering program (he said he watched how I was treated over time) and became an ASE certified mechanic. This as Alabama requires all mechanics shops have at least one ASE certified tech on board ( he is his shop’s guy).
    He also has worked insurance rehab construction, fires etc., several summers.
    We are contemplating buying houses with my retirement money 1500 ft2 or less 3br2ba. Now reading you and Eric Peter’s this morning I am thinking we need to buy early 2K Toyota Camry 4cyl and Tacoma PUs.
    The fly by wire setup in cars & trucks since day 2015 will make them virtually unrepairable after a certain age when the cost of the replacement electronics exceeds resale value.
    My 2003 Buick with a normally aspirated V6 is still running strong and looks better all the time.

    • I’m reading “One Second After” again. I’d recommend a ’57 Edsel … Or anything prior to 1980. It’d be worth the collector’s premium for a gem.

    • I’ll give you $1,000 for it, sight unseen, lol.

      No, seriously – let’s wait until friday

      • Buddy of mine years back bought a Porsche (think it was a 924 not a 911), it caught on fire as he drove it home. He hadn’t bought insurance on it yet, so since it was a buy-here bend-over here lot, he wound up being stuck with the payments. He decided to turn it into a grill. Talk about lemons and lemonade!

  5. It’s because we don’t elect the “best and brightest” to be our leaders. We, the people, started to destroy the world a long time ago; It is time for an asteroid ;-).

    • I am not sure about that.
      How many billions am I worth.. None so he has one up on me at least.

  6. Just in case nobody noticed, prices of wood and other commodity materials in Home Depots are up between 33% and 50% since the start of the year. Metal roofing has gone up 17%. I’m surprised nobody is howling about this, yet the stores are still packed with customers.

  7. shoegoo is shockingly craptastic. liquid nails small projects saved the new balance 454s are ready for 10 more years of abuse. 2 thumbs way up!

  8. Perhaps I’m missing something, but where did the idea of a possible two year rally come from?

    I could buy that 2000-2009 was a complete correction of the prior bull run and that 2009 to the recent peak was wave 1 of a new 5 wave pattern. (Granted, that pattern would be driven by even more funny money) but even so, we’d need a wave 2 and the current drop thus far is not sufficent, not even close.

    One thing that could drive a USA stock bull would be capital flight from Europe if the wheels come off.

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