Thursday, November 03, 2016

Don’t Sweat The Election 
The Next Crisis Is Already On Its Way
"From here on out politics are only relevant at the extremes .. Short of that, the fiat currency/fractional reserve banking world has such institutional momentum that it really won’t matter whether Trump is picking on bankers and building his wall or Clinton is protecting Wall Street and raising taxes. Debt will keep soaring as it has under every president since Reagan and jobs will disappear as machines replace people, thus bringing the end of the current system inexorably closer. So it’s both dangerous to try to time this kind of uncertainty and, in the end, unnecessary. Crisis is coming and governments (whether left or right, populist or establishment) will respond as they always do, with easier money and more borrowing. Here are three trends that matter vastly more than the name of the next U.S. President: These three things – soaring Chinese debt, disruptions in the money market, and the end of the auto loan bubble – matter vastly more than which party runs what part of the government. When one or all (or some other problem like Deutsche Bank) blow up in 2017, deficit spending will soar, interest rates will be forced down (to the extent that that’s possible) and new rules will be imposed on whatever freely-functioning markets remain. And so it will go until the old tricks stop working. Then the details will start to matter again."
- John Rubino*
LINK HERE to the commentary

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