I want to reiterate my forecast a huge economic downturn and political shapeup. It will most likely start with a disastrous drop in the stock market. The time is very near. There is a disaster coming. It will be long and probably the most severe calamity the United States has experienced.
After the Full Employment Act of 1978 was passed, Congress, The President and the Federal Reserve began destroying the economic future of the United States and all but a few of its citizens. All branches of government have a legal mandate to tamper with the economy.
The ostensible goal of intervention is to create and maintain full employment. In a short time economic intervention became a feeding frenzy for parties and institutions with political power. For 30+ years government economic policy has been used mostly to transfer wealth from the majority to upper income groups. Today government does nothing else.
When government is used to rig markets, the country’s resources become more misallocated with every passing minute. Ronald Reagan initiated the practice of tampering with financial markets as a way to reward wealthy supporters. This practice accelerated under George Bush Jr. Today, government economic policy is totally consumed with pushing the stock market higher.
Government policy prevents financial markets as well as product and service markets from clearing. But guess what? Economics is a discipline that imposes reality on folks, especially those who become delusional as a result of power and influence. What government does not allow will take place anyway.
Resource allocation is now so inefficient that the American economy will completely crumble as soon as government can no longer push stock prices higher. What Americans will see in the coming days will be a disaster bigger that anything that has been experienced up to this point.
The country may not survive in its current form with the present constitution.