Joey WaffleCone didn’t have his teleprompter to tell him what to say the other day so he said this:
The money quote is at 34 seconds.
“That’s an asset, more inflation. What a stupid sonofabitch”
First, he looks weird. Stoned. I’m wondering if adderall is doing the job these days. He looks like a geezer RealDoll (as if anyone would want one).
I’m not willing to give this meat puppet any benefit of the doubt, dementia or no. This was rattling around in his brainpan somewhere. Inflation is good for gubermint, but to everyone else, It’s a catastrophe.
I lived through that magic time in the 80’s when Paul Volker wrung out the money supply to kill runaway inflation. Before that, house finance percentages were in the double digits. I have a contract for a pickup from that era that I financed at a whopping 24%.
It was a painful time. Newly graduated in 1983, it took me 9 months to find a job in my field. Before that, best I could do was 3.80/hour. I pounded a lot of pavement, let me tell you. But even then, with inflation, $3.80/hr was like $10/hr today.
That’s what inflation does.
What’s $10 today? A meal at a fast food place, with $2+ change? a Six-Pack, without tax?
Here’s the deal – The money supply that Volker was bleeding away was way lower back then – measured in the billions, not trillions as was the debt – what? $500B? less? and there was no QE anything . Don’t forget the fed holding $4+T in funny money. AND we weren’t banging the war drums for a hot war with Russia.
What that means is his policies, as well as the mismanagement of the last 2-3 decades is past the point of no return. There will be many, many billions of boomers and gen-x whose retirement plans are about to be utterly denuded of value. You can’t do what Volker did back then, at all. raise the rates more than a few points and unable to pay interest, Uncle Sucker goes bust.
There will be no social security, at least in any meaningful way. And you can forget every federal welfare entitlement.
We’re broke now. Beyond broke.
There’s a great chapter in the book “The Great Reckoning”, written long ago, that describes what happens. The chapter is named “When the Music Stops”.
And stop it will.
Make some plans. Learn a skill. Get some assets. Because in not even a few years, it’ll all be different and worse.