An Economic Game Over and Reboot is as Sure as Death and Taxes

When the economy has nothing to offer, global default has become talking head vacillation. The Fed’s jabberwocky with regional presidents regarding interest rate increases is the only activity moving the American market for months now. And the reality is that there is no way in the world that the Fed can raise rates, as they originally announced back in December. That’s a program that should have started at least two, maybe three years ago. Now it’s just too little and too late. The market didn’t use the lower rates to stimulate investment, growth and new business when it had the opportunity. The market has ground to such a halt, that no type of “stimulation” can bring it back. It has gone brain dead, along with the government, central banks, and anyone holding onto a thread of hope for an honest return of market life.

The upcoming Brexit vote is equally absurd. This too is a concept way past its prime. But it’s been the only thing providing any activity to the European market. A vote to exit will kill the European Union and severely devalue the British Pound. On the other hand, a vote to stay will provide the necessary life support to keep the European Union alive but catatonic. Everyone has watched this economic deterioration from the beginning, but no one offered the slightest glimmer of intelligent programs, or even thought to address and offset the deterioration. Negative interest rates? Really? That’s comparable to conducting brain surgery with a butter knife. It may be all you have in desperation time, but it just doesn’t make sense.

Once the Brexit vote and charade is over, what will be our first step toward global recovery? That’s anybody’s guess, because absolutely no one has a long term plan. But the reason no one is articulating a long term plan is because no matter what “solution” you implement at this point, you will run into a global market collapse before getting to any possible long term recovery scenario. This is why China, smart investors, and even central banks have been stocking up on precious metals and gold in particular. Anyone waiting for “a better time” is simply in denial.