As far as I know, I am the only economist in the world who is predicting the collapse of the United States of America. I don’t mean that we are just going to experience a depression. I am talking about our political system collapsing as well. Expect an event of the same nature as what took place in the old Soviet Union when that system collapsed.
Why am I so sure? While other economists focus on numbers alone, I look at the forces in nature that cause those numbers to be what they are. All one need to know is that the ingredients that cause prosperity and peaceful living have been removed from our system. Our free market system has been dismantled. In politics, belligerence has replaced democratic principles. as the driving force. Without these two items, the country has no prayer of recovering from a depression or restoring itself politically. From this point on we are living in an every man for himself situation. The country is going to collapse. Watch and remember who told you so.
The same people who have no doubt that the 2020 presidential race was tampered with and rigged are completely unwilling to entertain the idea that the stock market is completely rigged. The stock market is not just rigged, it is micromanaged higher. What the GameStop retail traders on steroids are doing on a daily basis has been going on with high frequency firms for decades.
So, what is driving GDP? It is high asset prices and government spending. The collapse will come when the stock market finally breaks. The driving force behind economic growth since 2009 has been nothing other than the purposeful elevation of stock prices. So, what is driving stocks higher right now? In many cases, we might as well be trading bags of sand from the beach. There is no actual thing causing stock prices to rise other than the staunch determination to keep them moving higher.
There are two scenarios that are reasonable. Prices can continue to mush down in a tepid downtrend until a serious decline accelerates the process. Or, it can all happen on one day from hell that comes out of nowhere. I am inclined to go with the second potential case.
With limit down rules in place, it could take days or weeks for retail customers to liquidate. The stock market really is all there is to the economy. Once it breaks, everything in the world will change suddenly.