August 8, 2019
The Dow is down nearly 1,500 points this month as we pick up somewhere beyond where we left off in our burgeoning trade war with China. The S&P 500 has lost $1.4 trillion of stock market value.
The Federal Reserve cut rates just last week… “insurance” against an economic slowdown, it said.
But rather than cheer, investors wanted still-cheaper money. And yesterday, three more central banks around the world cut their respective rates.
As American Consequences contributor Bill Bonner wrote this week in his Diary:
Almost all major countries are stuck. They’ve all built their economies on fake money and phony interest rates. Soon, they’ll all be competing to debase their currencies to keep the fake money flowing and the whole fandango going.
Already, gold is at a six-year high… up more than 25% from last year when liberal economist and New York Times columnist Paul Krugman said “gold is dead.”
And the yields on 30-year Treasury securities are nearing an all-time low.
Finally, dual tragedies in El Paso, Texas, and Dayton, Ohio – two disturbed shooters with very different extreme political leanings, one white supremacist and one far-left Antifa supporter – have resulted in dozens of deaths and dozens more wounded.
Of course, few in Washington, D.C. care. Instead, folks on both sides of the aisle are doing everything they can to score a political point.
What to make of all this?
We recently read an academic paper published earlier this year by two political scientists at the University of Maryland and Louisiana State University. They note 40% of Americans now say that the opposite political party is “downright evil.”
As a result, 18% of Democrats and 13% of Republicans say that “violence would be justified” if the opposing party wins the 2020 presidential election. Those percentages might seem low, but as the researchers write:
The smallest observed estimates reflect violent partisanship among tens of millions of Americans.
And worse, the more confident a person is that his party was going to win… the more likely he was to endorse violence.
What could possibly go wrong in 2020?
As Dr. Ron Paul told us in our American Consequences 2020 documentary: It could mean the “total disintegration of society.”
After all, the tendency toward justifying violence against your political opponent is already at huge numbers – and the economy is great today. Wages are rising. There is no shortage of work.
What will happen when vast swathes of the nation can’t afford the next month’s rent… gas for their car… or food for their children?
If you haven’t yet watched our documentary, you can do so here for free by clicking here.
You’ll learn the one factor that practically guarantees a socialist, “progressive” candidate will win in 2020… why Alexandria Ocasio-Cortez is only the start of this massive political shift… and how it will likely bankrupt America.
And please, if you are concerned about the direction our country is headed, share our documentary – it’s the biggest warning we can make about the 2020 election.
Now a few things we’re reading…
“You can often play with fire and not have anything untoward happen, but if you do it too much you eventually get burned”… 50/50 chance that the U.S. enters a recession in the next 12 months.
The Federal Reserve just cut interest rates for the first time in eight years. And contrary to recent hints from the head of the central bank, I believe more rate cuts are likely.
The Fed may have no choice but to resume Quantitative Easing and start expanding its balance sheet again – potentially as early as 4Q – in order ease funding pressures expected during the coming wave of Treasury supply.
“She’s got no background or experience in foreign policy and she lacks the temperament that is necessary for a commander-in-chief.”
And let us know what you’re reading at [email protected].
Publisher, American Consequences
With P.J. O’Rourke and the Editorial Staff
August 8, 2019