Stimulus Kills the Economy: “The ‘experts’ most in demand are those that tell the lies the public wants to hear.

December 24th, 2020

Awake Goy

Swiss America’s
Gold News Daily
12.23.20 – How Stimulus Kills the EconomyGold last traded at $1,865 an ounce. Silver at $25.36 an ounce.NEWS SUMMARY: Precious metal prices rebounded Wednesday on safe-haven buying and a weaker dollar. U.S. stocks traded mixed after President Donald Trump criticized the new Covid-19 relief package, which could delay deployment of funds.Gold and silver now in a perfect storm scenario –Wagner/Kitco“Sadly, the events that began in March when the Covid-19 epidemic officially became a global pandemic has led to the current state of the economy. Actions by the Federal Reserve and the U.S. Treasury have resulted in a perfect storm of events that have taken gold to its highest price ever in August 2020. The fundamental events that have led to the series of massive rallies in gold and silver are still very much with us….The timeline for the vaccines to become available to the general public is still many months away. This means that the economic contraction which has affected millions of Americans leaving them unemployed, and the millions of Americans that we’re able to stay in their homes due to the moratorium on eviction are still in an extremely fragile and tenuous situation….The fundamentals which have been at the root of recent gains throughout the year in gold remain fully intact at least until the beginning of the second quarter of 2021. More alarming is the fact that once the vaccine is available and enough individuals have created a herd immunity, the economic fallout that will occur will continue to grow, and the financial repercussions that this will cause will continue.This is why I believe that we currently have a perfect storm scenario in which gold pricing will continue to rise, and over 2021 will trade to a new record high, as the U.S. dollar’s value will continue to diminish.” central banking How Stimulus Kills the Economy –Bonner/Rogue Economics“The ‘experts’ most in demand are those that tell the lies the public wants to hear. Such as… how to bail out the U.S. economy….The experts say that if we just give people money, they will spend it. Businesses will make sales. Consumers will consume. It will look like a healthy economy again.But where do the feds get the money? Never mind. You know as well as we do that they don’t have any. The federal government is already scheduled for a $2 trillion deficit this fiscal year.The feds will ‘print’ the currency…And, ultimately, one way or another, the ‘money’ the feds distribute today has to come from the people tomorrow. Well, that may not be so bad… If drawing on the resources of tomorrow helps us out of a problem today… what’s so bad about that?But wait… The burden of today’s letter is that the funny money does funny things to the economy. That is, the ‘stimulus’ actually depresses investment and output. Over the long haul, people will be worse off, not better.According to Bonner’s Law, bad capital drives out good capital. Free money is not just a fraud, but a curse. There is no example in history where giving people printing-press money – that is, money not connected to real products and services – ever did any lasting good….Experts argued that classical theories of money and economics were all wrong. The new Modern Monetary Theory (MMT) taught that the government was the source of all money… and that it should spend its money creating a better world for everyone.They insisted, too, that the government – with its armies of Ph.D. economists – should decide how high stock prices should be… how much it should cost to borrow money… what the rate of ‘inflation’ should be… how many people should be unemployed… and what the ‘capacity’ of an economy ought to be.Above all, they learned that when capitalism fails, the experts need to get to work. They need to give the people money. A bailout. A giveaway…. Not only do the giveaways turn valuable capital into a consumable… they also reduce the economy’s ability to produce. Everyone – except the insiders – gets poorer.”Americans Are in Full Revolt Against Pandemic Lockdowns –Tuccille/Reason“Echoing New York Gov. Andrew Cuomo, New York City Mayor Bill de Blasio warned city residents this week to prepare for a ‘full shutdown’ as part of ongoing efforts to slow the spread of COVID-19. The two elected officials better not hold their breath waiting for compliance. Evidence from around the country shows that many Americans are thoroughly sick of impoverishing, socially isolating lockdown orders, and are revolting against the often-hypocritical politicians who issue them….From coast to coast, businesses and individuals are ignoring restrictive rules that threaten their livelihoods, stifle social contact, and threaten to strangle the necessary interactions of everyday life.’Another shutdown just isn’t an option for us,’ the Seven Sirens Brewing Company of Bethlehem, Pennsylvania, announced last week on its Facebook page. ‘We, and thousands of other small businesses throughout the country simply will not survive. […] After speaking with our bank, staff members, families, attorneys, and local government officials…we have decided we will not comply with future shutdown mandates. We will continue to operate with the same, proven-safe measures we implemented 5 months ago.’….On the West Coast, many restaurants also open their doors to customers despite state orders to the contrary. ‘While some of the larger chains and corporations are following the orders, many of the mom and pop shops say going to takeout only would put them out of business,’ ABC News reported last week.The city council in Solvang, a tourism-fueled community in Santa Barbara County, recently voted to ignore shutdown orders that threaten locals’ livelihoods….’As of today, 17% of restaurants – more than 110,000 establishments – are closed permanently or long-term’ as a result of this year’s economic distress, the National Restaurant Association announced on December 7. Fatigue with lockdown orders was predicted by experts months ago, and voiced by the public in growing numbers….In distress and after due consideration, many Americans have decided that they shouldn’t comply. Individually and in organized groups, often with the support of their communities, people are pushing back against lockdown orders that they find more threatening than COVID-19.”