Political Economy

Crack Country

Chill Clowns, Evil, Political Economy

I’ve not seen such insanity since watching a grown-ass man steal his own kids’ clothes to pawn and buy crack in North Florida.

And yes, that is real. So is the entire country being destroyed before our eyes now.

Gadget

Chill Clowns, Political Economy

I Invented a Popular Kitchen Gadget. Tariffs Will Kill My Business.

And this will be happening a lot too; about 20% of the businesses in the US are unsustainable with current tariffs. If the tariff carnage continues this shuttering of previously-viable concerns will have vast follow-on effects. Depression, of course, but more than that. Somewhere between 40-60% of restaurants and service businesses will close. Entire neighborhoods will empty out as people cannot pay their mortgages any longer. Tent cities will sprout up across the land. Crime will rise and many areas will fall into chaos.

Every time massive tariffs have been enacted in the past, a depression has occurred. This time will be no different.

If you have favorite restaurants, visit them in the next few months. They probably will not be there in a year. And after that, you might not have any money anyway.

Ress

Chill Political Economy, Prediction

I’m glad I was old enough to talk to my great-grandmother on what living through the Great Depression was like. She died in 1986 and was born between 1900-1903 (can’t remember for sure).

My grandparents recalled the tail end of it, but my great-gran remembered the whole thing as she was in her twenties when it began. I was pretty young when we discussed it, but I do have a clear memory of her saying that her family went from living in a three-bedroom house to being forced to downgrade to what was basically a converted shed. She also said that food became unaffordable and for several years they were reduced to eating one small meal a day.

A lot of you aren’t going to need Ozempic anymore with what’s on the way. And will be doing a reprise of the life of my great-gran. Hope you like your converted sheds or refrigerator boxes by the side of the road, because to be perfectly frank that’s where many of you reading this will end up in the next few years.

Get ready now to avoid that fate later.

Trils

Chill Political Economy

The market crashed $3Trillion… where did it go?

This is an area where engineers and physicists (and other similar types) have real problems.

The short answer is that the money doesn’t go anywhere as it never existed in the first place. That does not, however, mean it is completely fake and does not mean it had no effect on the real world. A stock’s price is based on the current estimate of future earnings and works to fund company operations both directly and indirectly.

Yes, there are animal spirits, vibes, and short-term fluctuations as well as fraud and shenanigans — but the basic contention in the para above is still true.

Engineer types who are used to conservation of energy and such often simply cannot understand that the money is just gone when the stock market declines. Vanished. And that’s because it never really was anywhere. That is completely counterintuitive to them and their sensibilities.

But that is how it works.

Chase Down

Chill Political Economy

Startup founder convicted of defrauding JPMorgan Chase of $175M by faking firm’s success.

I see no problem here. Many more people should defraud JPMorgan Chase.

Apart from any law broken, it’s the buying firm’s responsibility to conduct adequate due diligence. JPMorgan’s audit of the books seems to have been, “Welp, looks good to me.” That wouldn’t mitigate the actual fraud in the eyes of the law, but were I the judge I’d just laugh at JPM and sentence Charlie to time served and let her keep the money1.

  1. Yes, I realize the judge cannot do that in reality.

DOGE Gone

Chill Evil, Political Economy, Politics

I’ve been planning for Social Security not to exist when I retire and looks like DOGE might make that happen. Glad I started planning for that more than 20 years ago.

Poverty rate is gonna jump and elderly are gonna be dying in the streets. But we all knew it was coming. Well, the smart ones did. The rich absolutely despise Social Security and covet that money. It was only a matter of time before they stole it all.

Superior

Chill Clowns, Political Economy, Politics

That’s right. She doesn’t understand it because it makes no sense. But people always want to feel that they’re better than someone else, even if the average contractor or construction worker should have more solidarity with the waitress in the café than the billionaire being a clown on TV.

But everyone in America sees themselves as a temporarily-embarrassed millionaire so class solidarity isn’t much of a thing.

He Found the Self-Destruct Button

Chill Evil, Political Economy, Politics

I thought the idea absurd in 2015-2016 that Trump might be a Russian agent, or least on their payroll. Now I think it’s probably substantially true.

Has a country so large ever destroyed itself so quickly? Maybe Germany in the lead-up to WWII, but even that was slower if I’ve read my history correctly.