No ruler ever intentionally crashes the economy. Go through history and find anyone that ever tries to crash their economy and there are none.
The blue states locked down their economy because they believed their own hype and the media hype that the wu flu is the worst disease in a thousand years.
They wrongly believe that the benefits of shutting down outweigh the costs of being open. They fully committed to that policy and will not back down even when proven completely wrong because they are ideologues.
In the same sense the Federal Reserve keeps blowing bubbles that keep blowing up. They think that they are doing the right thing and will do mental gymnastics to justify it and will never admit they are wrong.
Their policies made the Great Depression worse and have destroyed purchasing power over the last hundred years.
Congress believes that minimum wage laws will help the common man even though it causes more unemployment. They are not trying to cause unemployment but they are committed to an ideology that runs opposite to reality.
These are just some tangible examples of how the institutional elites think. They are not trying to destroy the economy. They think they are able to engineer a better economy but they are wrong and will not admit it.
Fortunately the market has limits and the 10 year yield hit 35 basis points last year. Interest rates can only go up. The Fed can try buy bonds to make rates go down but that will only undermine bond market confidence, the spreads between the 10 year yield and corporate yields will widen to by double digits, and all food and energy costs will increase by double digit percents this year.
Food riots will be occurring throughout the 3rd world probably by this summer and global political instability will give a negative feedback loop of disrupting supply lines, thereby increasing the costs of goods further.
No ruler ever intentionally crashes the economy. Go through history and find anyone that ever tries to crash their economy and there are none.
The blue states locked down their economy because they believed their own hype and the media hype that the wu flu is the worst disease in a thousand years.
They wrongly believe that the benefits of shutting down outweigh the costs of being open. They fully committed to that policy and will not back down even when proven completely wrong because they are ideologues.
In the same sense the Federal Reserve keeps blowing bubbles that keep blowing up. They think that they are doing the right thing and will do mental gymnastics to justify it and will never admit they are wrong.
Their policies made the Great Depression worse and have destroyed purchasing power over the last hundred years.
Congress believes that minimum wage laws will help the common man even though it causes more unemployment. They are not trying to cause unemployment but they are committed to an ideology that runs opposite to reality.
These are just some tangible examples of how the institutional elites think. They are not trying to destroy the economy. They think they are able to engineer a better economy but they are wrong and will not admit it.
Fortunately the market has limits and the 10 year yield hit 35 basis points last year. Interest rates can only go up. The Fed can try buy bonds to make rates go down but that will only undermine bond market confidence, the spreads between the 10 year yield and corporate yields will widen to by double digits, and all food and energy costs will increase by double digit percents this year.
Food riots will be occurring throughout the 3rd world probably by this summer and global political instability will give a negative feedback loop of disrupting supply lines, thereby increasing the costs of goods further.