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2018-11-06 09:45 by Karl Denninger
in Editorial , 195 references Ignore this thread
Winter Is Here; How Well-Prepared Are You?
[Comments enabled]

The most-important election...... eeeevaaaaahhhh!

How many times have you heard that?

Honestly -- I can't remember when I didn't hear that come an even-year November.

Nixon, Nixon is our man.... throw McGovern in the garbage can!

Yes, I remember that -- on the playground of my elementary school!

If your parents supported McGovern (nobody of that age was old enough to understand the difference) you were at risk of ostracism, harassment -- or an outright beating.  And no, the so-called teachers and keepers of the peace (otherwise known as "administrators") didn't give a **** about it if and when any of that happened.  Find me their graves so I can******on them as odds are high that they've preceded me as worm food.  I'll willingly take the disorderly conduct charge.

The fawning over Trump nauseates me.  Everyone screams jobs! and yet nobody pays attention to how bought.  The latter is much more important than the former.  Industry, innovation, productivity and actual balanced trade are how you make for durable job gains.  Printing up 6.2% of the economy in new Treasury Debt to produce a 3% GDP print is how you go bankrupt since at this point every dollar of new Treasury issuance actually has a negative return.  Trump did the latter and his taking "credit" for the outcome as somehow "good" is outright fraud.

I pointed this "coffin corner" problem out in Leverage -- in 2011.  It has bit every nation that has attempted this path as a means out of a recession -- or debt-bubble detonation.


Obama doubled the national debt on his watch.  Trump is now trying to do it again.  We thought we could get away with it by offshoring the inflation it would produce through so-called "free trade" (which was actually nothing more than a monetary experiment and anything but free) -- allowing China to steal anything not nailed down, half of what is, and then find ways to worm its way into what little remains of our innovation (e.g. fabs, such as with the recent Micron industrial espionage) and steal that as a sop to offshoring half our industrial base is idiotic.

Or is it?

Well, yes and no.  It's not stupid, it has been and is intentional.  The people in DC know good and damn well that if you actually reflected the doubling of the national debt back into the economy prices would have gone up by 50% and there would have been a revolution five years ago when half the nation was unable to eat.  The entirety of the Congress would literally have been food by now.

Look at places where you can't offshore -- health care, for one.  The monthly price of a reasonable "health policy" for a nominally healthy 50 year old guy has more than doubled in the last 10 years.  The sop is that this is due to "mandates", of course.  This is a lie; exactly how many dollars does mandatory ovarian cancer coverage cost the company writing a policy on a man?  Zero, since I have no ovaries.

Tell me again why the price of coverage for a single, 55 year old man who can run half-marathons, does not smoke and has no "pre-existing" conditions has a list price of $9,570.48 over the next year?  Again, tell me exactly what I get for my $10,000?  Are you really so ****ing stupid that you think the availability of a "tax credit" to reduce that cost to under $300 a year, which incidentally requires that I cut my income to about $20,000 a year in some way makes the price lower?  Of course it doesn't; not only does someone else get the bill but even worse the $100,000+ a year I could earn isn't earned and thus doesn't wind up being taxed -- intentionally and legally -- because I refuse to fork up 10% pretax of said income on something I don't need, don't use and directly supports monopolists committing felonies on a daily basis against myself and every other US Citizen.

Instead of taking on the real issue which is a health system that produces prices 500% above the market price, which is trivially demonstrable through comparing costs at places like The Surgery Center of Oklahoma, never mind the fact that they have an infection rate of 1/20th of an average hospital because they can't bill you for their mistakes, is something neither political party will do.  Instead we hear screeds about "pre-existing conditions" and "coverage" instead of cost.  Who needs such "coverage" if you can afford to pay cash?  Further, and more to the point, if you can't afford to pay cash what makes you think forcing someone else to pay will change the fundamental facts on cost when you are forced to pay for your neighbor's surgery and drugs at a monopolist-fueled 500% markup?

May I remind you that this behavior was made illegal more than 100 years ago, is a felony, and that the medical and insurance firms went to the Supreme Court twice more than 30 years ago claiming exemptions to said law and lost both times?  The binding precedent decided by the highest court in the land mandating that these ****faces be prosecuted and thrown in prison has existed for roughly four decades yet not one such indictment has been leveled against anyone in said industry since by a single state or federal prosecutor -- or their attorneys general.

Is it not obvious that if your neighbor can't pay the bill neither can you when it comes to your turn, so who's fooling who here?  Yet we have literally nobody talking about the cost issues and how to address them -- even the low hanging fruit like the hundreds of billions spent every year on diabetes drugs and treatment due to the explicit and voluntary actions of those with the condition, say much less simply enforcing the damned laws that have been on the books for over 100 years!

The people in power understand reality; there aren't enough cops and can't be enough cops.  There are too many guns, which is why the Democrats and Republicans are hell-bent on "red flag" laws, so-called "assault rifle" constraints and everything else.  Not that it matters in reality; nothing other than door-to-door confiscation that does not set off an immediate shooting revolt would tip the balance sufficiently for them to be able to put down real resistance.  Oh you can bet they'd try but when it becomes impossible to hire security because if the people decided to shoot them when the politicians hide behind said "security" it would be damned difficult to find willing replacements.  Even at a "one-for-one" ratio it's a losing game for the people in power, never mind that if that sort of crap starts commerce comes to a complete halt in seconds and so does tax revenue.

The cities -- including the enclaves of "power" -- would not survive a week under such a circumstance.  "Just in time" with all the means of production and processing outside of such cities, which is what we have today, makes commerce and free and open transportation without fear of being shot utterly necessary.  Something as simple as drinkable water relies on a steady supply of Chlorine Dioxide at the water pumping and supply plants, no matter where the original source comes from (wells, fresh-water bodies of various sorts or desal plants.)  Lose that essential chemical and you have water, but it's not potable without being boiled first.  Lose the power (also not generated inside the boundaries of said cities in the main) and you not only can't boil the water you can't flush the toilet without your neighbor experiencing your **** flooding his first-floor bathroom.  No functioning lift and sanitation stations make every building in such a city uninhabitable within hours.

Today PCR writes about the people needing to "rise in armed rebellion."

I don't think he's kidding, by the way.  I do disagree with his position that there are no other alternatives, however -- although the odds of the people deciding to take any of those alternatives, peaceful and lawful though they are do appear to be somewhere between long and zero.

Tonight we shall see if the dog whistle of self-destruction in the form of someone else will pay being run by the Socialists on the ballot, all of whom know damn well they can't possibly deliver what they're promising and are conning the people, will prevail.  Go look at the times Occasional Cortex has shown up on TV, been asked about funding her programs, and stammered -- unable to reply.  Look at Gillum -- same deal.  As soon as the question is "where are you going to get the money" the answer is a diversion or silence; never, ever once do they turn the discussion to how to actually address the cost problem by enforcing anti-trust law, by expelling illegal invaders and enforcing E-Verify on all employers so as to bring into balance wages and final product prices or any other actual, effective and possible steps.

I voted for Cthulu and Beelzebub as there was nobody on the ballot in Florida who spoke one word about any of the real, achievable and rational remedies to these issues.

**** 'em all.

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