It proves that you can NOT repeal the business cycle. No matter how much you lower interest rates, print money, or lower taxes. The market and business cycles always dominate any artificial attempts by the idiot savants in the Fed or in Congress to implement Socialist or Communist central planning schemes.
This business cycle downturn is so incredibly overdue. They were able to delay it with the constant monetary and fiscal heroin injections, but that just means the crash will be harder and maybe longer. It may stretch into the election cycle, which if it does, then Trump will not get re-elected. Ironically, he should no longer be cheerleading the Fed, but just let the downturn happen, so that the excesses can be cleared by natural means and growth restarted before the election.
I have said this many times, but Karma is a giant bitch in the sky that always gets her way in the end. I've been in cash and short dated bonds for close to 2 years now and I sleep like a baby. Many have been investing in gold recently, but I avoid gold, because it is an artificially manipulated market. At least with short dated treasuries, I can sit out any manipulated volatility and collect my interest until the principal matures, then I roll over. These are perilous times to be invested. Much better to sit in highly safe and liquid investments or cash until the excesses get cleared....and they will get cleared one way or another, probably sometime very soon. |
