All is right with the world; the fix is in (SLL, 10/21/15). Hillary Clinton sailed through the Benghazi hearings. The formerly feisty Drudge Report put up one link this morning on her testimony, and that was to a story from Clinton lapdog Bloomberg News. Another Drudge link: “Enough about Benghazi…what about Katy Perry concert,” says it all. Benghazi is now interred in the same mausoleum as all the other Clinton scandals; that little email matter will soon follow. The only thing that can stop the Hill now is her health; the powers that be haven’t figured out how to thwart sickness and aging.
Representative Paul Ryan has agreed to be the next Speaker of the House. Can a debt ceiling agreement be far behind? Secretary of State Kerry will meet his Russian counterpart in Vienna and try to save some American face in Syria. Yesterday Mario Draghi hinted at still more European Central Bank quantitative easing by the end of the year. Today China’s central bank announced a surprise 25 basis point rate cut. Global stock markets are levitating: more cheap money for the speculative set! Even mangy mongrel McDonald’s has caught a bid. The feds are going to bail out Puerto Rico, not out of any love for the island commonwealth, but to prevent nasty losses for the many US mutual funds that hold its debt.
The Empire is striking back. Stocks can go down, Donald Trump leads the polls, and the US has been humiliated in Syria. All hands are on deck to put the world back together again, at least cosmetically. Nothing they do will stop the burgeoning debt deflation, and more central bank sugar will just make it worse, but the powers that be are trying to reassert their control over what the media calls “the optics.” The more apt term would be “myopia-tics”: smoke and mirrors that temporarily obscure reality. The reality of debt deflation is that it’s getting worse, which is why the Europeans and Chinese are taking action, and why the Fed is now on hold until 2016 and probably forever.
Speaking of Donald Trump, the establishment has some unfinished business. They’re going to teach him (and anyone else who’s foolish enough to consider challenging the status quo) a lesson he’ll never forget. Trump’s apostasy on foreign intervention was his downfall, but his first deadly sin was calling politicians, bureaucrats and the media (an arm of the government) talking heads mediocre hacks; they’ll never forgive him. Telling the truth is dirty pool in today’s politics and they’ll take their vengeance with relish. His days on the Forbes 400 are probably numbered; the government can be hard on uppity businesspeople. He’d better go over his tax returns with a fine-toothed comb—maybe pay extra taxes—and beef up his regulatory compliance. He borrows a lot of money, how secure are his lines of credit? Banks are another arm of the government and will do as they’re told. Come to think of it, the Donald’s days among the living may be numbered. Just look at all the trouble he could still cause, especially after the smoke clears and the mirrors crack. SLL rules out nothing.
READY FOR A GREAT NOVEL?