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Kakistocracy Conspires with Quackistocracy to Create Unparalleled Inflationary Depression

MEME: Torchy Blane/Winter Watch

There are decades where nothing happens; and there are weeks where decades happen.’ – Vladimir Ilyich Lenin, founder of the Russian Communist Party, leader of the Bolshevik Revolution

The kakistocracy is merging with the medical quackistocracy and creating an unprecedented labor and supply-chain crisis with severe supply- AND demand-side inflation.

There are shortages of truckers, bus drivers and workers at warehouses, ports, retailers, restaurants, hospitals and nursing homes. In the midst of all this, President Biden chose to impose vaccine mandates on workers — even for people who have already had Covid-19 — thereby driving even more people into early retirement and causing a downshift movement in commerce and economic activity.

Late last year, before the Dementia Joe’s election, the Lugenpresse called concerns over vaccine “passports” a right-wing conspiracy theory. Today, it’s a conspiracy fact. Now, the kakistocracy is mulling a new rule requiring vax I.D. cards for all interstate travel. Meanwhile, in some areas, like New York, it’s a requirement to dine out or shop. We suspect it may soon become a requirement to renew one’s driver’s license, passport or visa, and to receive funds from employer/employee-paid programs, such as unemployment insurance, social security benefits and Medicare.

People around the world — or at least some — are being rightly radicalized by bad and corrupt policies and mistreatment of their people by those with money and power. Workers at Alitalia, for example — Italy’s No. 1 airline — are on strike because of the Covid mandates. They are rejecting their own union, which has been corrupted from above.

With kakistocracy kingpin Biden’s federal vaccine mandate set to take effect on Monday for some workers, health-care systems around the country are suspending elective in-patient surgeries and refusing to accept ICU patients from other hospitals as they brace for walkouts by hundreds of nurses, critical staffers and even doctors who refuse to be jabbed by babblin’ Biden’s arbitrary deadline.

Erie County Medical Center in Buffalo is planning to fire about 400 employees who have chosen not to get the jab required by the edict, which was pushed through despite being blocked by a federal judge, according to The New York Slimes.

Officials at Northwell Health, the state’s largest health-care provider, estimate that NWH might be forced to fire thousands of people who have refused to get jabbed.

The latest New York governor to crawl out from under a slimy rock, Kathy Hochul, demonstrated full-tilt satanic inversion and declared — without even a hint of self-awareness — that “what is looming for Monday is completely avoidable, and there’s no excuses.”

Hochul is a full fledged Branch Covidian even declaring in front of a megachurch: “The vaccine comes from God” I need you to be my apostles.”

Despite the fact that vaccination rates are much lower in most of the world outside the U.S., magical-thinking kakistocrat Hochul threatened to find “foreign workers” to staff the Empire State’s hospitals and care homes.

In Fidelito’s Canada, bars and restaurant associations say sales have dropped more than 40 percent in the majority of the establishments they represent. Many are considering closing until this new restrictions are permanently lifted. The restaurants, as we predicted here, are objecting and balking at enforcing these satanic measures against their customers.

Meat reserves have plunged to dangerously low levels, according to Bloomberg. A U.S. report Wednesday showed beef reserves down 7.7% from a year ago in August. Poultry supplies slumped 20% and pork bellies, which are sliced into bacon, dropped 44% to the lowest levels since 2017.

Wim Lagaay, chief executive of APM Terminals North America, which operates at the port of Los Angeles, said, “If you work a gate 24/7, it will improve your velocity. Up to 30% of overall truck appointments are not met because there are not enough trucks, drivers or chassis.”

According to Reuters, citing comments made by the retail industry to the U.K. government: “Unless new drivers are found in the next  10 days, it is inevitable that we will see significant disruption in the run-up to Christmas,” Andrew Opie, director of food and sustainability at the British Retail Consortium, the retail industry’s lobby group, said on Friday.

The cause of this fiasco is again self-inflicted, as the kakistocrats suspended driver training for a year during the scamdemic. Additionally, as was seen in other western countries, older drivers have retired.

The U.S.’ largest toilet-paper maker, Procter & Gamble, is experiencing overwhelming demand on top of logistical and labor disruptions that have hindered how quickly goods move through the country.

Europe’s energy crunch is continuing, as gas storage volumes shrunk to 10-year lows. A possible harsh or dark winter could lead to severe energy shortages and possible shutdowns of large parts of the economy.

“Brent oil prices have reached new highs since October 2018, and we forecast that this rally will continue, with our year-end Brent forecast of $90/bbl,” Goldman Sachs reports.

At the same time, the era of cheap imports from China is over. This has nothing to do with the Minsky Moments occurring with China’s Ponzi-financed property developers.

From Bloomberg:

The crackdown on power consumption is being driven by rising demand for electricity and surging coal and gas prices as well as strict targets from Beijing to cut emissions. It’s coming first to the country’s mammoth manufacturing industries: from aluminum smelters to textiles producers and soybean processing plants, factories are being ordered to curb activity or — in some instances — shut altogether. Almost half of China’s 23 provinces missed energy intensity targets set by Beijing and are now under pressure to curb power use.

Among the worst hit are Jiangsu, Zhejiang and Guangdong — a trio of industrial powerhouses that account for nearly a third of China’s economy.

Yunnan Aluminum Co., a $9 billion producer of the metal used in everything from cars to soda cans, has curtailed output due to pressure from Beijing. The shock is also being felt in China’s giant food sector. Soybean crushers, which process the crop into edible oils and animal feed, were ordered to shut this week in the city of Tianjin. According to Nikkei, suppliers to Apple Inc. and Tesla Inc. halted production at some of their sites in China on Sunday.

In a “dear colleague” letter to members of the Democratic Caucus over the weekend, Nancy Pelosi warned that they’ll have one week to “pass the Continuing Resolution, Build Back Better Act and the BIF (Bipartisan Infrastructure Framework), adding that Sept. 30 is a “date fraught with meaning.” In other words, on that date, at midnight, the government will have to fund itself or shut down and risk a U.S. debt default.

Sept. 30 is also a curious date for the stock market as it marks the beginning of a significant corporate stock-buyback blackout period that will extend through the end of October. FYI: Stock buybacks, using debt issuance, has been a significant driver of the bubble mania. This removes an integral cornerstone propping up the market. The marker “today” on the chart below is Friday, Sept. 24. Volume in yesterday Monday’s session was fume like, indicating a dearth of bids.

Without the artificial buybacks, the market is vulnerable to any reasonable level of selling over the next month. Canary-in-the-mineshaft companies — like Federal Express, Disney and Nike — have already disappointed on earnings and guidance. With the stymies no longer bloating economic activity and with the lack of goods and inflation wiping out purchasing power, look for the shortfalls to accelerate.

What to Do?

I don’t want to make recommendations or impart advice on precise timing in a market as manipulated and fraudulent as this one, but I will say that I have nine gold mining-sector stocks I’ve been recently accumulating. As a rule I am using advanced stage projects with enterprise value to NPV of less than a third. I am also seriously short the market- not especially recommended to do at home.

I’m also willing to share a scattering of meaningful charts, data points and thinking-out-loud notes, which I’ve been DM’ing with my son on Twitter.

  • HSBC is the stress point on these China USD foreign debt holders. They may be too big to fail but have few friends in China.
  • Four hawkish Fed governors join voting members in January. Inflation then will be extremely neglected and raging. However-

  • Comex open interest in gold is quite low at 496,629 , as is silver at 143,477. Very thinned-out low open interest markets normally are bullish, but price can get push around in either direction.
  • Sprott has CEF- 63% gold, 37% silver, trades at 3.3% discount to NAV. Sprott has PHYS (physcial gold) 1.4% discount NAV, and PSLV (physical silver) 3.08% discount to NAV.
  • Super bullish case for silver, which is used in EV and clean energy. The backside of this interview is good, too, as he speaks to what a joke trying to mine in Mexico (largest source of Ag) is now. This equates to supply constraints and tight markets developing.
  • The launchpad and enormous multiyear support for Ag was 18-19. It had a rocket move and then formed a triple top. The question is the chart. Can it hold at 22, or does it have to fully retreat to 18-19. I’m a skeptic about more downside as the hedge funds are already short (very rare event) and not long at 22. It’s a play not to be missed because of the upside, but suppose it is possible that the hedgies willy nilly dump 40,000 short contracts into a thin market and take it to long-term support, or try to manipulate through 22 support to hit stops. What do you think? My son’s answer is legit: Scale in if hits successive lower-price levels. But that also risks missing a serious entry or under-investing. Who says market are easy.

This equals revolution and civil disorder.

Son’s response: Yep, and then U.S. put sanctions on Belarus fertilizer, one of world’s biggest.

Fred Hickey’s thread analysis on gold and silver CoT

My tweet response: 28k off of 46k would put managed money (fund) at only 18k. They have effectively liquidated most of their gold and as Hickey notes are net short silver. At 1740 POG where we trade as I post we must be at only about net 10K fund longs.

My note to my son: For $1,675 gold and $18 silver to transpire, the managed money boyz would need to short unprecedented amounts of naked paper contracts, perhaps 70,000 contracts, and reduce open interest by a similar amount. This would drain all the physical vaults in the west and set up a huge short squeeze. If that happened, a $500 to $600 rally or more would then ensue.

This mining stock rally of 73-74 happened in a backdrop of rising interest rates.

7 Comments on Kakistocracy Conspires with Quackistocracy to Create Unparalleled Inflationary Depression

  1. I think its going lower than that Russ… Fed Govs day trading all of a sudden “outed” in a profession that is OCD about paper trails, AML etc…

    This look like throat clearing to me…

    With all the demoralizing sh!t going on; losing a war, mysteriously identifying yourself with a Cartoon like President in a Cartoon like reality…Not to mention all the lies lies lies, ll that’s left is we await one more pillar of our society or culture to become exposed as TransWhatever Based

    Couple this with a vax that, get this,,,doesn’t cure BUT does reduce how your body reacts to covid??? Doctors prefer the term “Reduces Symptoms” but I take exception to that, pain killers reduce the symptom of pain..and then start to wear off, pain comes back..

    This sh!t “turns your bodies fire alarm and fire station down..Translation: You have reduced symptoms because your bodies natural “panic to fix” button is deadened…Sounds like AIDS to me.

    So add this NEW REALITY to the old “Stock Traders Almanac” and mix in some MMT….It might be best to just go long Ciggies, Jim Beam, and Rottweiler puppies…That’s where I’d put my first 3 ounces…And that’s my 2 cents-This is not financial advice

    • Nah. I think the three of us throw caution to the wind and combine 1980s American “know how” with a modern casino video game approach.

      First we all get busloads of Ritalin. Then we take said Ritalin and link with one another on Zoom.

      Then, we just start crushin’ BINARIES, up and down. We start looking for patterns..up…down…up…up…down..up and that sort of sh*t. Masters of the Universe baby! = )

      Then to make sure the Ritalin never ends, we buy UCB.BR, and short the Euro. This way we can keep the juice a flowin’.

      Then we need to devise a way to short “OLD PEOPLE”. Yes, I said it “OLD PEOPLE!” If their 105+ years old, then we need to short them. Big time!



      Hoping you are both well, and yes, I do like the Rottweiler puppy idea a lot. If we are going all MOD, we might want to follow Neo’s advice form the Matrix with “…guns, lot’s of them.”.

      All my best,

  2. All by (((their))) design. I wish more people would stand against these AskeNAZI “mandates” for instance at my job a maskhole gets the sniffles and probably a lung issue from the 8 hours plus in a mask…then they run and get the worthless PCR test, it comes back positive so they sit at home for 2weeks. These retards are policing themselves and are willing participants in the JWO satanic scamdemic and their own demise. I caught a cold, not even a bad one, this summer probably from the shedding vax-holes, I didn’t miss a beat, I didn’t take a worthless test, I did what I always do for the common cold and I didn’t die …Oh my!

  3. The overarching question is whether the engineered global collapse will go as planned and will the ‘build back better’ DAVOS plan succeed after that? The devil is in the detail. Literally.

  4. Hmm…Well, I would have to say that I am of a mixed mind. PLEASE DO NOT TAKE ANYTHING I MIGHT SAY AS INVESTMENT ADVICE OR ANY RECOMMENDATION OF ANY ACTION WHATSOEVER. Whew! With that done, let’s see what old Simple might be able to add to this fine thread.

    Well I started a post earlier and it became unending, so I will try and stay succinct and even short this time around. Basically (humble and respectful thoughts here):

    I think RW is right for the intermediate term and maybe even the longer horizon. His points have “legs”.
    I think BGNZ and nedlern are right, but early, for what lies beyond the horizon.

    To surmise, yes those metals shares in certain mining cmpanies look pretty appetizing and may be worth consideration. Unfortunately, I cannot recommend the futures or even the options on futures (where I am normally happy) for any metal, because the “white shoe boys”, who run the exchanges, change the margin rules every time that they do not like what they see (long story I started in the post that you are not reading).

    Eventually, for another “RESET” (this is not new, there have been many) that is both “great” and vastly “equitable” gov. and the corporate world will need you to move your money to them. They will make “safe” gov. type offerings, with “safe” very conservative teaser rates, followed by rock bottom long-term returns These investments will be readily available to the public after a big-ish drop, in most of the markets, off of a very high cliff, thereby wiping out a lot of businesses that were once thought of as “safe”. These “gov. offerings” (and I do not care where in the world you live) will be “quasi gov.” as the front end will be gov., but the EULA will permit a third party (CORP.) to manage the works.

    (Side Note: Again, if I try to explain this idea further, we will have an EPIC post, so please just ask me any questions if what I am writing seems “bonkers”; I am happy to respond.)

    “Build Back Better” (another concept that is hardly new, think New Deal or Great Society, will just be another layer to bring us all closer to gov. control, willingly) will be a process of having the public citizen buy heavier into the government investments (again a front for CORP. through gov. contracts / partnerships). Then when the time is right, gov. will just go all digital.

    Joe Citizen / Joe Main Street can either lose it all, or accept all of the new fascist controls and learn to “love that blockchain”. Trading will be preserved as a game for the well healed. Joe Citizen / Joe Main Street can be thrown into the streets where they will be hounded by a military state, even while resting under a bridge.

    Fait accompli!


  5. Just had to comment on Russ’ Freudian slip, “stymies” instead of “stimmies”. Or maybe it was an intentional pun of his. When you think about how communism doesn’t work eventually, its “to each according to their need” stimmyfest kind of does stymie production, causes shortages, and ruins prosperity. That’s why Juval Noah Hariri thinks Marx was a genius preparing the world for the infernal tribe’s pet project, Homo Deus. Marx brought economic ruin to the gentiles! Marxism can help Kill Bill take out his ‘excess billions of people, too many people’, fast, through a monkeywrench or sabotage strategy. And the amazing thing is the PTB will simply ride the vortex and step off on their home planet, far from earth when it’s the perfect time. Their poor haids are already in outer space or how else can you explain what little concern they have for themselves stuck here with their fingers in the till, in a self generated Mad Max social collapse, the kind that would make an ordinarily complacent person want to issue their own money and throw out the bums, FOREVER.
    We got to see it all happen in 2020 as the PTB launched their pathetic Endgame, the kind that could take out a three millenium old credit monopoly. We are going to get to see mosiach and the Great Reset dawn and collapse the whole fucking tribe.
    If yer quoting the Rottenchilds on issuing the money, you RIGHT over the target now.

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