The coronavirus shutdown of several major tourist areas in Thailand
has left the monkeys who inhabit those regions without food and
starving. The monkeys are now infighting for scraps.
How did it get like this? Simple: the carrying capacity was
artificially boosted by tourism, much of which was paid for with debt.
When
the tourists show up they feed the monkeys. The monkeys thus have
enough food to breed and grow their population. Some might even forget
how to harvest native food stuff. But now that the monkeys are hooked
on the artificial carrying capacity stimulus, any little disruption
results in a very bad time for the monkeys.
What do you
think is going to happen when the fake money blows ups and the
financial system collapses? I'm telling you, it's going to get ugly.
Many will decide they have nothing left to lose and they will turn to
crime. Even as something as short lived as this corona virus outbreak
is likely to be is causing layoffs to people who barely have enough to
live as it is. Right now they get by with welfare, food stamps and the
like. But what happens when all of this is cut off because the
government can no longer take on more debt in order to make these
payments? What happens when interest rates skyrocket to 7,10, 15 pct
and the US debt is now > 24 trillion? Interest rates are hitting a
generational low right now. Don't expect them to stay down for very
long. Soon enough bond buyers will be demanding more interest for the
money they loan us in order to make up for the 6.5 % annual debasement
of our currency that is done by the federal government.
What
happens when the carrying capacity of our society collapses? I tell
you true, you are not prepared for this. Even if you have gold, silver,
guns and ammo you will be in trouble if you do not have access to a
ready food source because in crises store shelves go empty, yes even in
the USA. This corona crisis will pass but within a couple years the
fake money is going to die and then we will have a much much bigger
crisis. Trust me, all the signs are there. Emergency actions are being
taken right now without telling anyone. The repo market has been the
smoking gun but also the stock market brokers have made sudden changes
without any explanation. Everyone went to free trades overnight and
then a couple weeks later TDAmeritrade got bought by Schwab an Etrade
got bought by Morgan Stanley. These brokers were the marginal players
and you can bet the federal reserve made a deal with them to buy them
out so that nobody would have to know what trouble lies just beneath the
surface. I've been watching this show for decades and I can see that
it is getting very close to bingo fuel. And when that happens the USA
is going to go into a nose dive that will be worse than the great
depression.
My models have been calling things almost exactly right. On Feb 15th I provided this model to my subscribers.
Current actual is below. I have dozens of similar examples.
Unfortunately
the models current suggest that we are in a 4th wave pullback. That
implies one more higher high is possible before the wave count up since
2001 (dot bomb bail out) is complete for many major stocks and that's
when we could see a 50-75% decline in markets or worse accompanied by
empty shelves, starvation and civil unrest if not outright war. Yes
they are only models and have proved to be about 70% right on average
but if the models are right then the consequences of doing nothing are
huge.
Don't be a monkey. Don't be left in panic when
the carrying capacity that was provided by debt based spending
collapses. Protect yourself before hand. Make a plan. Maybe I'll see
you in the Bahamas.
Thursday, March 12, 2020
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