"...The Entire Internet Has Doomer Fatigue"

Authored by James Howard Kunstler,

"I can tell the entire internet has doomer fatigue."

- Catturd on X

The mysterious financial repo markets - which practically no one outside of banking understands (and even some banking insiders don't) - started showing some signs of stress recently (forward rates spiking: 1Y1Y SOFR has risen nearly 50 bps in two weeks, signaling growing concern among dealers and investors about future funding costs); though not near the level they did in September 2019, just before You-Know-What sucker-punched the world with lockdowns, stolen elections, and fake vaccines. Half of America still hasn’t got its head straight... and here we go again.

The private equity outfits, like giant BlackRock, are wobbling so hard that they had to “gate redemptions” — meaning, investors can’t pull their money out of funds going dark with dubious collateral. It’s exactly what sparks panics. Money can only stand so much unreality. The Rube Goldberg machine of finance — a scaffold of insane complexity designed to bamboozle the rubes — is threatening to fly apart. The world only needs so many pre-owned yachts.

Plus, there’s a war on, which has disrupted the regular flow of the world’s primary resource: oil.

That’s the really-real side of the picture. The Strait of Hormuz remains closed.

You’ve got to wonder how much additional pounding the lunatic state of Iran can take.

It’s not clear who is even in charge there. Iran’s supposed foreign minister, one Aras Araghchi, is suddenly offering to give up those 440 kilos of 60-percent enriched uranium that are at the heart of this quarrel.

Sounds a little surrender-ish, though he made the offer with a certain defiant bluster. Let’s see where that goes.

Maybe the war will be over sooner than you thought.

Watch and listen starting at 13:00-minute Mark:

With all this in motion, things slip-sliding all over the place, the week ahead may be one in which nobody can think straight or get a straight answer.

Here’s something to chew on: do you think Great Britain is our dear friend because we speak the same language? Great Britain has been allowing Iran’s ruling Revolutionary Guard to park its money in London for half a century while Lloyd’s offers jacked-up insurance rates to all those tankers faring through the Strait of Hormuz.

This dynamic has made world oil up to 15-percent more expensive since the 1970s, and Britain’s banks have been creaming off the premium all the while. Trillions. Mr. Trump is putting an end to that racket while he also terminates Iran’s ability to export Jihad thuggery throughout the Middle East. That’s the meaning behind the Abraham Accords and the new Board of Peace set up to figure out Gaza — and probably to replace the broken United Nations as a mediating force in the region’s long-running conflicts.

Mr. Trump is also sending a message to China: the US will have something to say about the flow of oil going there out of the Persian Gulf, which is to say most of China’s imported oil. (The US imports relatively little oil out of the Persian Gulf, two to three percent of total US oil consumption which is 20-million barrels a day.) This is pretty serious power politics, but notice that China has not started World War Three over it. Mr. Trump and Xi are still talking, and are scheduled to meet in Beijing in April. Meanwhile, Xi is having plenty of trouble of his own with twitchy PLA generals, a staggering deflationary export economy, and a lot of angry young people thrown out of work.

One thing our country will not get a straight answer on this week is the SAVE Act. Senate Majority Leader John Thune made noises over the weekend about staging a half-assed “debate” on the floor, a demi-filibuster. . . then holding a guaranteed-to-fail cloture vote. . . making it impossible to reach a place where the bill might be subject to a simple majority vote. The procedural bullshit at issue is surely a challenge for the general voting public to understand. The bottom line is that Majority Leader Thune is entirely in-charge of the filibuster process and could make it work to advantage the SAVE Act if he wanted to. He could call for a full, “standing” filibuster that would require the bill’s opponents to explain themselves — that is, to explain why they prefer election fraud.

So, for now, the Save Act will fail to pass. The public will register the failure, if not the twisted route that got it there, and they will be mighty pissed-off. The really interesting part is what happens after all this is acted out, especially Senator Thune’s comic attempt to explain why he did this. And especially if, in the weeks just ahead, the nation watches federal indictments rain down for election fraud in Georgia, Wisconsin, and other states where so many weird things happened right before our eyes in November, 2020, 2022, and 2024. Sometime after that, the SAVE Act will come up for a vote again, and with a vengeance!