America Has An Epic Choice
Sat, 10/10/2020 – 17:00
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
– Ludwig von Mises, Human Action 
Crisis Now or Total Catastrophe Later?
On Tuesday, while still hopped up on anti-coronavirus goofballs, President Trump had a moment of clarity. After 40 years of near uninterrupted credit expansion, it was finally time to cut it off. And he was just the guy to do the cutting.
Trump took to Twitter to make his first snips. He announced that stimulus bill negotiations were severed. Minutes after, the Dow Jones Industrial Average hit a 400 point air pocket. Several hours later, and perhaps following a little tutelage from Mnuchin and Kudlow, Trump reversed course.
We don’t know what Mnuchin and Kudlow said to Trump. But we suppose they informed him that, at this point, the immediate health of the American economy is contingent on delivering printing press money to citizens and non-citizens alike…who cares if the long-term consequences are catastrophic? Thus, Trump called on Congress to approve a second round of $1,200 stimulus checks.
This course of action eschews voluntary abandonment of further credit expansion. This, no doubt, is the path of least resistance for politicians. Unless Trump wants to lose the election, he can’t tell voters there’s no more free money.
The choice is real simple. Voluntary abandonment of further credit expansion and a crisis now. Or further credit expansion and the final and total catastrophe of the dollar system later.
For a politician this isn’t really a choice at all. If you recall, Nero clipped coins in 64 A.D. and fiddled as Rome burned. The decision every president makes is to avoid a crisis now and, with a little luck, leave total catastrophe for some other sucker.
We’ll have more on this in a moment. But first, some perspective…
Between a Rock and a Hard Place
In the Spring of 2003, 27-year old Aron Ralston found himself between a rock and a hard place. While solo canyoneering within the rock fissures and tapered caverns of Bluejohn Canyon, in eastern Utah, something heinous happened.