By David Glenn Cox
The Federal Reserve today shot their bolt and for their efforts…made it worse. Imagine you’re on an ocean liner and in the middle of the night you feel a crash. You go looking to investigate and find the Captain wearing a life jacket, but he assures you everything fine just go back to bed! You look out the porthole of your stateroom and see the Captain lowering a lifeboat. I’m sure these guys have heard this before… too soon and too quick to be impressive. The Fed put out a statement saying, “The fundamentals of the economy are strong,” then five seconds later scream, Oh my god! It’s the end of the world! While passing out a half a point interest rate cut and cyanide tablets. What’s the matter little boy? Not feeling good. How bout a nice big piece of chocolate cake? That’ll fix you right up!
Investors were cheering as the market shot up over three hundred points. Then investors said, “Wait a minute! He was wearing a life jacket and was carrying his coat.” Here’s where the Wall Street wizardry comes in, “Wait a minute, I bet he’s lying!”
One the few points I have to agree on with the financial types, its bad juju to interfere in markets. Case in point, this is not the Feds job. And this is dumb, you know how dumb? This is Donald Trump dumb. Making it cheaper to borrow money isn’t going to help with your supply problem. But now a third of all remaining interest rate leverage is gone.
That fundamentals spiel, you suppose he plagiarized that from 1929?
“There is no economic failure so terrible in its import as that of a country possessing a surplus of every necessity of life in which numbers willing and anxious to work, are deprived of dire necessities. It simply cannot be if our moral and economic system is to survive.”
― Herbert Hoover
This is a contradiction in terms using moral and economic system in the same sentence. It refers to a religious Moses ideal coming down the mountain with the new rules. But those rules are unenforceable and illusionary. We’re talking Capitalism, was it morally wrong to close the factory…I dunno. But I got a ten million dollar bonus from the stockholders, so, yeah okay!
One of the strangest manifestations of this is the reaction of the Democratic Party establishment to the candidacy of Bernie Sanders. This is not unusual just pronounced, every administration litters the party with holdovers. So, they ask themselves…which candidate is going let me keep my job in the Party? Then they ask, who is not going to let me keep my job? For a party apparatchik the only candidate running that is a threat is Bernie Sanders. They’ve kept their jobs through four years of Trump so, what’s four more?
Show of hands? How many are really pleased with the way the Democratic Party is behaving?
Come on! Don’t you want more of the same? If we elect Joe Biden, he promises to be nice. “I have a question about my healthcare?” He will unite us, “What about the Green New Deal?” And bring us together again. Buttigieg and Klobuchar are gone did anyone notice? They’re young but they’ll be back in a Biden administration. But do you know who has stayed too long at the party…Mike Bloomberg.
With two disastrous debate performances and speech that made him as cuddly as a porcupine, he still considers himself presidential timber and is ready to fight it out at a brokered convention. Is it ego or a vanity campaign? If Mike Bloomberg is the Democratic nominee look for Mad Max and head for the Thunderdome. You could pick a better candidate drawing names out of a hat.
So, here’s a question, with the stock market going up and down like a Duncan yo yo, are fundamentals really that strong? Three percent annual inflation for a decade with less than one percent wage growth. Home prices rising at three times inflation and health care costs rising at four times inflation. Minimum wage at starvation levels mental healthcare nonexistent. The world’s largest jail population filled with those needing mental healthcare. Crumbling infrastructure and an existential climate emergency, you see, we didn’t use to have mile wide tornadoes.
Does now sound like the right time for more of the same? Do we need a candidate who promises to do the same old things the same old way? “I like Bernie’s healthcare plan but it’s just too expensive.” “I like some of the ideas in the green new deal but they’re just too radical!” If not now…when?
Wedged between fascism and more of the same. Wedged between a criminal and a crooked game. What will we tell the children? We’ll, you see kids we had a chance to save the environment, but it was just too expensive. Politics is all about compromise, you have to choose the candidate that best pleases the Party establishment. If you ever thought, we had a free press in this country the last twenty-four hours must have been difficult for you.
“He’s coming out!”
“How was it, Mister Vice-President?”
It was fine, all in all very good?
“Were there any difficulties?”
A little corn but we mastered it.
“Was the paper acceptable?”
Very nice, very nice, it went down with just one flush!
“And the great owners, who must lose their land in an upheaval, the great owners with access to history, with eyes to read history and to know the great fact: when property accumulates in too few hands it is taken away. And that companion fact: when a majority of the people are hungry and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed. The great owners ignored the three cries of history. The land fell into fewer hands, the number of the dispossessed increased, and every effort of the great owners was directed at repression. The money was spent for arms, for gas to protect the great holdings, and spies were sent to catch the murmuring of revolt so that it might be stamped out. The changing economy was ignored, plans for the change ignored; and only means to destroy revolt were considered, while the causes of revolt went on.”
― John Steinbeck