Thursday, March 12, 2020

Monkeys in Thailand are no different than Americans.

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.

No comments:

Post a Comment

Hi and welcome to my blog. Comments have been enabled for anyone with a google account.

Twitter Delicious Facebook Digg Stumbleupon Favorites More