In One Chart: ‘Call it fate, call it karma’ — Why the coronavirus is merely ‘the final kick into the abyss’ for the U.S. economy
In One Chart
For the exact opposite, however, keep reading for the latest downer from Charles Hugh Smith.
The man behind the OfTwoMinds.com, which was recognized by CNBC as one of the best alternative financial blogs on the internet, has been calling for the implosion of the U.S. empire for years now, and the coronavirus pandemic has him believing that time has finally come.
“We like to think we’re in charge and that technology conquers all,” he wrote in his latest post. “But history moves in cycles that are larger than any person, corporation, elite or (gasp) technology.”
Can you guess which part of the cycle he believes the U.S. finds itself in this chart?
“The slippery slope to collapse — decadence — is characterized by greed, corruption, irreconcilable internal political rifts, moral decay, frivolity, materialism,” Smith writes. “Hmm, sound familiar?”
The pandemic is merely “the final kick into the abyss,” he said, after the global financial crisis laid bare the fragile nature of an economy kept alive with artificial stimulus.
“Elites have done nothing but kick the can down the road for over a decade,” he wrote. “Nothing that’s broken has been fixed; all that’s been done is trillions in currency has been borrowed or printed to paper over the dissolution, decay and decline.”
Smith warned of a “terminal crisis” that begins in 2021, regardless of any progress made to bring an end to the pandemic and kickstart the ravaged global economy.
“A COVID-19 vaccine, or lack thereof, will have zero effect in terms of reversing these cycles,” he said. “Call it fate, call it karma, call it what you will, but the cycles have aligned and nothing can stop the unraveling of all that was foolishly presumed to be permanent.”
In keeping with the gloomy theme, the Dow Jones Industrial Average
lost its footing to end Tuesday’s session almost 400 points lower. Both the S&P 500
and tech-heavyNasdaq Composite
closed firmly in the red, as well.
Now, here’s a bucket of kitties: