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Coronavirus…. could it cause the crash of our nations economy?

April 24, 2020

Germany during the second world war and money was practically worthless


….we had been on a grizzly hunt in Northern Alaska for almost two weeks now, and though we had a number of opportunities to down a bear we had nothing to show for it except running low on ammunition. Now we were face to face with a charging brown bear and the hunter I was guiding was out of ammo. In that instance the result could have been my or my clients death, today here in the United States it is potentially far worse.

You are probably scratching you head trying to figure how in the world I could come to that assumption, but even blinded by the all encompassing coronavirus threat I can see the writing on the wall and so should you. Two items come to mind that should make you realize the truth in what I say.

First…. In 2013 I wrote a posting about the national debt and what each of ‘we the people’ share in that debt would be. I wrote it at the time because the federal reserve had “misplaced” some gold assets other countries had given us for safe keeping and congress once again was trying to pass a bill to fund the government for three months without passing a balanced budget. Today we mirror this same insanity by the president signing the second coronavirus bill spending money the government does not have, and congress drooling at the thought of yet a third spending bill.


Second…. When the senate majority leader Mitch McConnell says “I would certainly be in favor of allowing states to use the bankruptcy route” rather than the federal government bailing them out due to the coronavirus pandemic I think we are in real trouble because he is basically admitting that the US doesn’t have the funds to bale out every state in the union.


If you add to that the national debt had gone from 14 trillion dollars in 2013 to 24 trillion today you have a financial hole we will never get out of. The nations Bureau of engraving that prints our currency is working around the clock to keep up with the multi-billions congress is doling out to fight the shut down of our nations economy, and with every dollar printed without being backed by assets that dollar becomes more worthless.

Right now we are faced with

the life or death battle

with the coronavirus

eventually

we will face the fact

that the money

we spent fighting it

may be akin to facing

a charging bear

with

no bullets.

Here in this photo many Venezuelan dollars equal only one U.S. dollar, will we end up seeing this here?

4 Comments leave one →
  1. Mike Hohmann permalink
    April 24, 2020 6:48 pm

    You got it, Pete! Bread for $7/loaf soon at a store near you! Gold at $3,000/oz.

    Like

    • April 25, 2020 12:54 pm

      Mike in the remote villages in Alaska I found bread already at that price and coffee going for $17/lb so they are ready for any mega price increase and shortages they are already used too!

      Liked by 1 person

      • Mike Hohmann permalink
        April 29, 2020 12:34 pm

        My point was that we will likely see a doubling of retail prices across the country since about a year ago. It will be interesting to see gasoline prices as the economy opens over the next couple of months… but bread, milk and meat/poultry prices will definitely be inflated! Take it easy, Pete!

        Like

  2. Jon Rukavina permalink
    April 24, 2020 10:12 pm

    We have China to thank while Xi Xinping sits there watching there clasping his hands behind his head. His own special brand of a sanction.
    And now the rest of our not so friendly nations know what to do.

    Like

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