The American Economy Is Starting To Crack Along Its Rotten Foundations

The modern American economic system really has no parallels in historical narrative – at a single stroke it combines the worst practices of almost every single design into one giant steaming mess that only widens the gap between rich and poor.

And while I do not subscribe to the idea that it will all come crashing down into a Mad Max ruin scenario, it’s about to get a nice juicy open-palmed slap across the face if computer algorithms are to be believed.

CNBC:

Federal Reserve Chairman Jerome Powell’s assertion this week that the U.S. economy remains strong is facing a stern test from the bond market, which showed a classic recession sign Friday morning.

Short-term government fixed income yields are now ahead of the longer part of the curve, delivering a strong recession indication that hasn’t happened since 2007.

The spread, or yield curve, between the 3-month and 10-year Treasury notes just broke the longest streak ever of being above 10 basis points, or 0.1 percentage point. The two maturities were last below that level in September 2007, a run of 3,009 trading days, according to Bespoke Investment Group.

The two maturities inverted Friday morning, a near-perfect sign that a recession is coming. An inverted yield curve does not mean a recession is imminent but that one is likely over the next year or so.

The three-month note yielded 2.468 percent around 10 am, while the benchmark 10-year was around 2.44 percent.

Economists see the yield move as a dark signal for an economy coming off its best year since the recovery began in mid-2009.

“Yield curves are responding to what they see, to what I believe is a global economic slowdown,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “You don’t see this kind of move in curves, not just here but everywhere, unless you get one.”

Just for the record, economics is a pseudoscience, and most of what you hear on the news, and in schools, and read in textbooks is gibberish that changes with each generation.

What is beyond dispute, however, is the fact that we live in a system of entirely-unregulated and unbridled Capitalism.

Sure, there are laws on the books to curb certain practices like improper terminations, MSRP violations by retailers, and monopolization, but our system is a paper tiger totally corrupted and beholden to big business.

Don’t believe? Then, go ahead and attempt as, say, a humble Amazon seller to sue the company itself for predatory pricing.

You’ll be banned for life, Amazon will seize your money, and any merchandise sitting in a fulfillment center will be “destroyed” by the corporate powers that be.

Or try, as a local mom-and-pop store, to sue Walmart for entering your community with the intent of squashing all competition.

You’ll be taken to court, outfought in the shekels war, and end up homeless or forced to work at said Walmart as a door greeter to feed your family.

There is no winning with what we have today, so let’s just go ahead, attempt something new, and force the exorbitantly-wealthy to at last open their wallets and pair their fair share into the community.

About Marcus Cicero 593 Articles
Proud White Man, devoted husband and father, and Occidental Dissent contributor.

13 Comments

  1. That little chinese troll is having a good time with naive americans indeed.

    He knows that the Jews are going to print money hard enough to wake the dead. They will print like mad man, print like fly pimps. Print until they bleed.
    They will print via the swaps, via bank bailouts, via negative interest rates, via loan to banks, and in the end via actual fiat paper instrument wich they might very well drop from actual helicopters!
    They will not give a damn what anyone thinks! Because this is the goddamned end of it. There is no accounting beyond this print. End of it!
    Rome totally debased their coinage at the end but nobody whined about it.
    Whoever had some solid money grabbed some land with a vineyard and sat back and waited for the Middle Ages to start.
    Mad Max scenario is an understatement to what some countries will look like in the future.

    • To Nemo :

      Our American coinage, the U.S. dollar, has already been totally debased — and Andrew Yang had nothing to do with debasing the U.S. dollar. The U.S. dollar was debased in 1913 with the Federal Reserve Act. Yang wasn’t around in 1913.

  2. Speak up now for your moral, spiritual and civilizational foundations because it’s the only memory that will keep you warm while you’re starving to death.

  3. “What is beyond dispute, however, is the fact that we live in a system of entirely-unregulated and unbridled Capitalism.”

    I’m not so sure about that. I used to read a lot of (((Noam Chomsky))) and I think one point he does argue very well is that American capitalism is anything but unbridled. It is a dysfunctional and unviable system kept afloat only by careful state management, heavy corporate subsidies and bailouts, protectionism and regulation. All to the benefit of course of corporate (((Elites))) as Chomsky calls them. But unbridled? Certainly not. As much as lolbertarians like to talk about an unfettered market free of interference, the fact is, that like Marxism, it doesn’t work and never has. All capitalist economies are heavily dependent on strong state intervention.

  4. Our economy is the worst of every scenario indeed! One look at the *healthcare* industry is all it takes. We all pay incredibly exorbitant prices and we get garbage in return. Grocery stores, ever higher prices and crappy food. What’s our ROI on the education system? Our military conquering the world is the only bang for our buck, and no decent person even wants it.

  5. So how do Yanggangers see the Red Flag Second Amendment issues?

    Colorado Senate advanced their Red Flag bill on Friday after 12 hours of heated debate.

    https://www.denverpost.com/2019/03/22/colorado-red-flag-gun-bill-senate/

    https://kdvr.com/2019/03/22/colorado-senate-debates-gun-bill-due-process-public-safety/

    From the KDVR article:

    “Colorado’s legislation would allow family or law enforcement to seek a court order to have guns seized if they believe the owner is a threat. If approved, a subsequent court hearing would be held to determine whether to extend the seizure, up to 364 days.

    The bill also would require anyone whose guns are seized to prove that he or she no longer poses a risk in order to get them back.

    Republicans led by Sens. Jack Tate and Jerry Sonnenberg argued the legislation doesn’t offer due process to gun owners.

    Tate called for adding language strengthening the right to seek legal action and court costs for gun owners who are victims of false or malicious complaints that they pose a risk. Sonnenberg offered an amendment to require a psychological evaluation and report to a judge before a protection order can be issued.

    Democrats rejected both motions.

    “This isn’t about mental health. This is a gun grab,” Sonnenberg said.”

    Red Flags require ‘clear and convincing’ evidence on the part of the accused to restore his or her gun rights, when only preponderance of evidence was necessary to suspend them – without any opportunity for that accused individual to face his accuser in court or even be notified he’s being accused to begin with.

    it’s insane. It’s the absolute end of all pretensions to freedom.

    Sanctuary Nation Now

  6. Some (probably jewish) egghead at Duke wrote a book insisting:

    “anticommunism was tightly entwined with questions of race and nationalism…it ended up conjoined with another politics of fear that was remaking Europe in the early 20th century: anti-Semitism. This explosive combination came to be known as “Judeo-Bolshevism”: the idea that there was something “Jewish” about communism, and thus that individual Jews were dangerous because they were committed to violent revolution. The linkage of long-marginalized Jewish communities with the genuinely powerful communist movement was, while mythical, astonishingly successful—and astonishingly lethal.”

    https://www.thenation.com/article/paul-hanebrink-history-of-anti-semitism-and-anticommunism/

    There is a tremendous push in academia to ‘prove’ that anticommunist agitations are all some secret form of ‘racism/antisemitism,’ and that the term communism/communist in our circles is just code for non-white.

    The narcissism and solipsism of the left knows no bounds.

    • I for one have better things to read than any sh*t written by a (((Duke))) professor … (((Duke))) in Durham NC is in the same league as (((UVA))) in kangaroo court C’ville VA.

    • Mart Phagan’s Ghost, I suspect that the keyboard that was used to type love letter to the Jewish Bolshevism possessed a stench of gefilte fish, and matzo crumbs could be found between the keys.

  7. Trump’s economy is just as controlled and just as corrupt as all of his predecessors’ economies. What’s changed?

  8. The hive mentality of the Chinese mind is quite evident with Yang. He has a likeable personality but remember… chinamen very, very sneaky unlike our current rulers jewey hiding behind traitorous whitey.

    At this point I am hoping a happy go lucky chihuahua is on the ticket. And, I don’t mean a Mexican.

  9. Replace American economy with global economy and you get it right. The Global economy is the greatest ponzi scheme in human history with a $244 trillion pot of debt that no one knows how to pay off or even wants to start talking about because to do so would rip the world out from under the feet of everyone.

    Next, let’s be brutally honest. The economy has not recovered, not one bit. Its still chugging along at a dead man’s pace for 95 percent of the population. Stores and factories are still shutting down and relocating while Trump tweets about 600 new jobs at a car factory that will be staffed by a mix of illegal immigrants and H-2B visa workers. The only part of the economy that is doing great is stock options and the reason fr that is companies buying back their own stocks to drive up prices.

    To be a bit out there, Trump is like Baghdad Bob, tweeting about how great the economy is doing and how another few hundred jobs were landed in Murica while ignoring that a Walmart story shut down, two companies laid off 20 percent of their work force and that another hundred people got kicked out for not being able to pay rent.

    The only real smart thing to do these days is to invest your money in guns, bullets and canned food.

Comments are closed.