In 1979, the movie “China Syndrome” starring Jane Fonda and Michael Douglas ignited a firestorm among the general public about the safety of nuclear plants. In the movie, a reporter believes that if a meltdown occurred in a specific fashion, the radioactive material could melt through the Earth’s core all the way to China. Today, it’s a different story. The meltdown we’re facing is coming from China and it’s a hot economic poison that threatens the rest of the world.
But, as always, there is more to it. It’s China compounding the problems already created by our own leaders.
It is a fact and the evidence is clear; the leaders of our various large institutions have utterly and completely failed and even abandoned us.
The CDC failed. The FDA failed. The Federal Reserve has failed. In every case, the pattern is the same – petty if not pathetic self-interest and greed were more important to those entrusted with important public service roles than your life or our future prosperity
So, now it is all laid bare.
A banquet of consequences is on the way and most people are desperately unprepared for the economic pain in our future.
In this special video report, I lay out a string of financial indicators that all point to a very severe impending recession or worse.
Coupled with surprisingly draconian lockdowns in China that have hobbled the economic and exporting heart of their economy, I see a period of very painful stagflation on the way. That is, high inflation and negative economic activity at the same time. There’s nothing more ruinous than losing income at the same time that prices are skyrocketing.
Is China playing 1D chess with a self-ruinous zero-Covid policy or is it playing 3D chess and using Covid lockdowns as an excuse to hobble the west further with another round of destabilizing supply chain disruptions? You know what? It doesn’t really matter, either way the outcome is the same. Shortages, paralysis and difficult-to-control inflation will result and China is leading the way.
The Fed is out of options here. So too is the ECB as are the other central banks of the world. The choice is now between letting inflation run away or crashing their precious financial asset bubbles. Er, markets.
Add it all up and you need to become as resilient as possible.
from Peak Prosperity https://ift.tt/LSh4XNg
