Tin Soldiers and Nixon

Richard Nixon* is the reason we are going down in flames and Richard Nixon is the reason we have not gone down in flames yet. The US parted ways with the gold standard in 1971 thanks to Tricky Dick and that is a large part of the reason we are printing our way to infinity as we speak. It is also, ironically, the reason the dollar has not imploded yet. The US dollar has become the de facto currency of the entire world since then based on the perception of the US as an economic powerhouse with no rivals. Since the USD is still propping up the globe, massive increases in supply are going unnoticed or at least silenced by desperation. 

The reason the music has not stopped yet is because the usurpers have not been able to muster enough firepower to challenge the King. The comically overvalued Euro was a nice try but heads are going to roll very soon and it aint gonna be pretty. Merkel has somehow managed to convince her loyalists for some time that backstopping the entire continent is a noble cause but the chinks in that armour are rapidly fracturing. The recent German court ruling is just the beginning. I give the Euro until you finish reading this to be a footnote in history.  The Japanese yen is widely referred to as a “reserve currency” but the yen is nothing more than a showcase for stagflation so stepping up to the save-the-world plate is a printdream (as in printing money to the rescue dream). Japan is basically a pensioner living off their investments with zero chance (like most pensioners) of miraculously conjuring an exponential rise in income. What about Russia? Can’t they just rub out the petrodollar with a new and improved rubledollar? Despite a lot of stuff in the ground, and the noble efforts of Elvira Nabiullina (possibly the only sane central banker in the world) to shore up the Motherland with gold, Russia is still stuck in the minors like Michael Jordan. Well, everybody knows China has been making a charge and has 1B people on the verge of buying everything that isn't nailed down right? China is the ultimate house-of-cards debt zombie and even if they unleash their consumer hordes, guess who makes everything now and will also be selling everything if that fantasy materialized? 

So nobody is coming to the rescue of dollar oblivion especially the US dollar but wait, no worries, the IMF is gearing up the SDR so all good. Special Drawing Rights would be better represented by Supreme Delusion Rout with a snowball's chance in hell of the world power mongers joining hands around that picnic basket in anyone's lifetime. In other words, there is a reason nobody on Earth except the geekest of Geeks has heard of SDRs.

It's settled then, the US dollar reigns supreme and the runway is clear for infinity-printing. Not so fast. The only constant in all of this is currency destruction never fails - ever. Even though we have not pulled a “Neil Young - Ohio” yet and campus shootings are not the norm at the moment, the Tin Soldiers have amassed like never before. They are the deaf, dumb, and blind electorate that is beating the drum for more trillions that do not exist. I realize most people don’t have a clue what a trillion dollars means but trust me, it is (soon to be was) a lot of money. Ron Paul appears to be the only one left in the world that doesn't think Daddy's credit card is a bottomless pit and “The Government” will solve all problems. Maybe he is the crazy one but I don’t think so. The infantilized masses are not going to like it but it won’t be long now when “We’re finally on our own” - Neil Young.

This means the lunatics have finally taken over the asylum. Capricious edicts are the norm now and mask hysterics are gleefully complying with their favorite tinpot dictator. I cannot help thinking about Woody Allen’s movie Bananas when I see people wearing masks since it is eerily similar to the docile indoctrinated populace ordered to wear their underwear on the outside of their clothes. The fact that almost nobody questions the validity of the authoritarian call to arms is astonishing to someone that grew up in the sixties. In case you were not there or have forgotten, the sixties is an homage to anti establishment cultural revolutionaries. Even though I was a child I have never forgotten the most important message that came out of the sixties which was NEVER TRUST THE GOVERNMENT. 

*yes he was a crook.