Monday, October 5, 2020

The COVID Recovery Is A Hoax

Trump from Walter Reed hospital (:55) (paraphrased):

"I just got schooled by COVID. It took a couple hundred thousand dead later, but now I finally understand what the experts were telling me nine months ago. To my legions of devoted hoaxtards, stand back and stand down"

Trump's miracle recovery from COVID is like the economy's miracle recovery. 100% smoke and mirrors. To win the election...

We have no idea if Trump is recovering or not, because he lies constantly. And when he's not lying, he has a base of useful idiots doing it for him. Who knew that greatness required so much lying? What we do know for certain is that Trump is pumped full of massive doses of narco-pharma to give the appearance of a recovery. When he heads back to the White House he will be propped up in the Oval Office like Weekend at Bernie's. 

Likewise, today's Disney markets are pumped full of monetary heroin, to give the appearance of an economic recovery. Incredible deception. Asinine gullibility. Whatever you want to call it, history will call it verifiable Idiocracy. Most Americans STILL trust Trump on the economy more than Biden. Anyone who trusts a known tax evader, bankruptcy artist, and sociopathic liar desperate to win an election is a total fucking moron. 

We've never seen such a massive deception as the one taking place right now. The majority of today's pundits actually believe that we have entered a new recovery cycle. Which implies that the devastating economic effects of COVID had zero lasting impact on financial markets. No credit crisis and zero de-leveraging by the bankrupt corporate sector. We successfully borrowed our way out of depression. The only question is, why didn't we try this sooner?

"It worked"

Facts and data can't compete with a good storyline, massively misallocated capital, and a moron on Twitter. Again, what happens when we are trapped inside an old age home incapable of accepting reality. There is no pride among the incontinent. You have to ask, is there even one Republican who will tell the truth anymore?

This economy is 100% smoke and mirrors, now entirely dependent upon conjoined fiscal and monetary stimulus. Which has run out, hence why the job market is re-imploding. 

Now, heading into the winter lockdown months, today's delusionists believe that the recovery will continue, even as the pandemic remains out of control.

The cost of this election, will be measured in lost trust and credibility in "the system", which is now 100% con job. We are fully on our own now. Not only can we not trust Republicans in government, we can't of course trust Wall Street, and we can't trust the mainstream business media. The next and last thing to go will be any and all trust in today's economists. They will all soon be viewed as Bernie Madoff disciples. 

Barron's this week:

"The rapid jobs recovery in May and June has definitively ended—and may even have started to move into reverse."

To be sure, central banks have done a great job of disguising the looming credit crisis under a tsunami of liquidity. But as usual, they have bailed out the lenders and left the borrowers twisting in the wind. This time it won't work. They've merely postponed the inevitable. Yield-starved investors have once again perceived low interest rates as a reason to onboard more risk. In the process they are ignoring default risk. It was always going to end this way that a recession was seen as a buying opportunity, only it's not a recession, it's a depression.

This is store closures by year:

This is now a fully virtual economy. Global capital is crowded into Tech stocks on the belief that this is the contactless economy of the future. No humans required. Everything every yuppy needs drop shipped to their door. Which is why these denialist investors are ignoring mass unemployment. In their minds, Mad Max is the new normal. Except, these delusionals are ignoring the 17% deficit propping up "GDP". A 747 running on two out of four engines. Meanwhile, state and local governments are now shouldering all of the unemployment costs, however, they are quickly running out of money. Without further stimulus, they will implode.

In summary, this is a 100% smoke and mirrors recovery, in the Trump tradition. This time he has ample help from his legions of lying disciples. Useful idiots who specialize in con jobs at their own expense.