If you’re not saving every goddamn penny you can, you’re going to be fucked. Though the full scope of Great Depression 2.0 might just collapse the economy entirely, devaluing the U.S. dollar to the point of being tissue paper. I’m not saying that will happen, but I wouldn’t rule it out either at this point.
I’ve warned about a pending housing crisis so severe that it would lead to a historical event “closer to the Great Depression”.
The housing bubble managed to expand beyond my Fall 2018 prediction. However, you can see from the chart below that my forecast was a reasonable assertion to make since that’s precisely when the current bubble breached the 2009 median housing price just before that bubble popped. The bigger the rise the bigger the fall, but I underestimated how heavily the Federal Reserve would continue propping up the markets.
Watch “The Big Short” for an entertaining education on how the previous mortgage crisis started, kicking off the 2009 Great Recession. Also listen to this important interview with Matt Taibbi, who studied and reported on the subject for seven straight years and explains what happened in a way that nobody else has managed to translate into understandable terms.
Instead of bailing out the homeowners who had been defrauded by Wall Street, Obama kicked millions of out of their homes and gave trillions to the same corporate criminals who defrauded those people, and then… well, that’s it. That’s how faux-liberal, right-wing, Obama left things.
The most charming puppet of the corporate Establishment literally punished the victims and rewarded the crooks, which shouldn’t have been surprising since half his Cabinet had been selected by a former Citibank executive and was exposed by Wikileaks.
Obama only dumped fuel on the fire and the media didn’t bother to cover the rising flames. Then he left it to burn for years and handed it all off to Trump (who doesn’t give a shit either). Now it’s an unstoppable firestorm and neither Trump nor Biden, Republicans nor Democrats, will be able to put it out. Not without bailing out the people, which they most definitely do not have any intention of doing.
How do we know this is true? Because Congress has already given over 5-plus trillion to corporations under the guise of “coronavirus stimulus” via the CARES Act, yet hasn’t passed Medicare for All even in response to a pandemic or universal basic income to cope with record unemployment or rent relief to prevent millions from becoming homeless. Instead the majority of the House and the entire U.S. Senate, including Bernie Sanders himself, voted to give trillions to the already-wealthy. 95% of the stimulus bills passed so far have gone to those with income over $1 million. There is no reason to believe that this will change course.
Here’s the official White House memo showing the incredibly uneven breakdown of the tax relief provided to the country. The priorities of Congress couldn’t be clearer.
As if there weren’t already enough reasons, the housing crisis alone will ensure a revolution. When tens of millions are left jobless and homeless amid increasing food shortages with little if anything left to lose, desperate times will necessitate desperate measures even for the most adamant pacifists.
My diagnosis remains the same as it was when I started this website. Destroy the gestapo, target the rich, and above all overthrow the U.S. Empire. It is way, way too late to “reform” this dumpster fire of a government that created these colliding disasters with horrific policies and knowingly did so to enrich their donors. Corporations dictate policy under Oligarchy. And that means there is no legislative pathway to change. You cannot fix a rigged system within a rigged system.
The top 1% always gains wealth from an economic crisis because they scoop up all the assets when they hit rock bottom prices, meanwhile the middle-class is left impoverished and scrambling just to make ends end. This is why the gap between rich and poor always increases dramatically after an economic downturn. Every 10-15 years the economy tanks and the rich take a big financial leap forward while the poor are forced to take two steps back. There is no road left to keep kicking the can down it. The jig is up. The decades-long con is over.
Violent revolution is now, as it has been for awhile, inevitable. The coronavirus only triggered what was already baked in to the equation. Without it we were still going to experience a housing crash, an auto crash, a stock market crash, a jobs crash… all of it. COVID-19 only ripped off the bandaid.
I once again maintain that the more proactive we are in pursuit of justice, of revolution, the sooner we act aggressively to topple the U.S. Empire, the more the damage might yet get be mitigated. We must restore democracy by any and all means necessary and then use it to radically alter the distribution of wealth in this country, rejecting the proven failure of trickle-down economics and instead invest in the future of the middle-class majority.
But hey, what do I know? #REVOLT