Here’s a simple observation, but one that will mightily distress the last few believers in “good government” on the planet: whoever controls the government ends up rigging the rules of the game for their own benefit. From Bill Bonner at acting-man.com:
Turning Inward
U.S. stocks fell a little on Monday. After the excitement of Brexit, investors don’t seem to know what to do. Some believe the vote in Britain signals a “breaking up” pattern… a move toward Trumpism and away from globalization and financialization.
If so, it may mean “walls” – turning inward and away from the go-go era of ever rising credit and central bank backstops for the capital markets. Others believe Brexit will have the opposite effect. The “Hillary Effect,” they say, causes policy makers to close ranks – and do “whatever it takes” to protect themselves.
What it takes, they believe, is more phony money.
In Friday’s paper, Mark Carney, head of the Bank of England, said he was ready to act if Britain should suffer “economic post-traumatic stress.” We will translate that for the benefit of readers who don’t speak Centralbankese.
Carney said: If stock prices drop, we’ll rush in with enough cash to turn it around. And yesterday, the Financial Times cautioned policy makers to forget the long view. The important thing is to prevent a recession now!
“This is not the time for [the Treasury secretary] to set long-term tax policy,” says an editorial. No – this is a time to watch the news. Or the “incoming data,” as Fed chief Janet Yellen calls it.
Tipping the Playing Field
Donald Trump was in Maryland over the weekend. Actually, he was in Berlin, Maryland, far out on the Eastern Shore. Berlin is in Worcester County, which has the highest unemployment in the state and the highest level of support for Mr. Trump.
In Maryland, the unemployment rate is below 5%. In Worcester County, it is 7%. Why? We are connecting the dots. One of our dots is that center of light, liquidity, and hysteria – Washington, D.C. Berlin, Maryland, another dot, is about as far away as you can go from Washington and still be in Maryland.
Washington has an average home price of about $500,000 and the highest median household income in the nation (about $90,000). How did Washington get so rich?
Washington DC house prices – this is where the bubble now lives…in Deep State Central. And they didn’t even need Carney to do it!
The simple explanation: Instead of leveling the playing field, the insiders tipped it in their direction. Now, money drains away from all over the country into the deep pockets of the nation’s capital. Wait a minute… how does that work?
Every state in the union has two senators and at least one Congressman. How does D.C., with no senators and only one delegate in the House without voting rights, get the best deal? Ah-ha! Another dot: the Deep State.
Foxes in the Chicken House
The government is not controlled by the Congress. Nor is the nation’s money. Instead, both are controlled by a group of unelected insiders – aka, the Deep State.
They pull the strings. They write the legislation (which members of Congress admit they are too busy to read). They make sure that whatever meat is served to the rest of the nation, the choicest cuts are left in the District of Columbia and the surrounding counties of Maryland and Virginia.
To continue reading: Foxes in the Chicken House
