US Economy Diagnosis: Patient Terminal

I think this is only my second post that is mostly focused on distributing excellent content created by someone else, but I'm going to because this really helped me get something I've been reading and watching a lot of videos/interviews about for months now. In about 10 minutes he creates clarity where hours and hours of other sources, including former Fed members, only created a little window washing with a dry towel.

See: Repo Market END GAME Finally Revealed!

Even after reading this post, where I'll summarize my key takeaways from the video, I really hope you'll spend the 13 minutes watching the video itself. I like Gammon's channel in general, though I couldn't say I agree with him 100% about everything. I'm pretty sure I can't say that about anyone though, so no demerits there. But regardless of what you think about him or his channel, this video stands apart in making a pretty rock solid case for why we can expect this little house of cards to collapse pretty soon.

For a few years now there's been a lot of talk of a coming economic recession/depression. I've written many times of dangers to dollar hegemony and the important role cryptocurrency, arable land, and precious metals will play during the transitional years. I've expected to see a major pullback in the stock market for a couple years now. Yet here we still are with record low unemployment among those looking for work (ignoring all the working age people on disability payments instead of looking for work), housing prices still going up, and the stock market continuing to hit new highs.

We all know what has to happen, given how neoliberal economics is structured to its core. We just don't know when. And when matters. It especially matters if you have USD, because there is a time to hold it, waiting for inevitable buying opportunities for quality assets that will be oversold during a sharp correction, and there is a time to keep only a few months living expenses in it, knowing it will be massively devalued.

What time is it now? How about now? And now?

We have to keep asking ourselves this because the answer really does keep changing. There is no perennial right answer in such a dynamic global system.

Gammon's above video will walk you through how you can know that we really are in the final months before the US Fed, which has been holding it together for the entire global economy, loses control of this thing.

TLDR: No matter what they do now, it leads to the same result. The real economy is about to wind up in a 70s style squeeze. Prices will go up. Employment will go down. People will have less money but need more of it. The Fed will have to devalue the dollar to keep things afloat at all, particularly given federal debt levels. Pensions are in big trouble. Easy money has metastasized, and the patient is terminal.

And that's the idealized outcome! If it sets off a global chain of events that feeds back on itself, we may hit more like 1930s level distress.

What Winning Looks Like

Just remember that even when everything is going down, you can still be going up. Pay attention to what needs to happen in your life when, based on what is happening around you right then. Stay nimble. And hedge your bets, so that no wrong guess, no matter how confident, takes you out of the game completely.

Realize that we're all guessing here. Informed guesses, sure, but some of the best minds in finance have been contradicting each other for years. Be humble enough to know that you don't know, yet must still choose and act.

Keep or rebuild relations with family, old friends and neighbors. Learn to cook from scratch and start doing it now. Get an indoor grow kit for at least some veggies if you live in a cold climate. Stock up on seeds, and replenish that stock at least once a year, even if some remain unused. Be hopeful, knowing that you will be guided to experiences that confirm whatever your expectations are for what happens to you in all this.

Good luck.