Albert Edwards: "We Just Had A Small Taste Of The Coming Financial Collapse"

What is the outcome when three market skeptics sit down for dinner to discuss the future of the global economy? Whatever it is, it's hardly optimistic.

In his latest note released moments after the big CPI upside surprise and titled, what else, "We just had a small taste of coming financial collapse. Still feeling lucky?", SocGen's permabearish Albert Edwards writes that he had dinner this week with "two of the great, London based, sellside macro analysts," George Magnus (formally UBS Chief Economist and now at the China Centre, Oxford University), and Nomura's Bob Janjuah. This is what was discussed:

In the aftermath of last week’s surge in equity volatility among many of the topics we discussed was the extraordinary ballooning of the US budget towards 6% of GDP at this late stage of the cycle. My view is that this fiscal expansion is probably the most foolhardy escapade in modern economic policy history.

Here Edwards posits that while he agrees that US corporate taxation is anomalously high, "it is the timing of the fiscal stimulus that is utterly ridiculous and will only accelerate the collapse of US financial markets as the Fed hikes rates even more quickly."

That also happens to be his key thesis: Trump's tax cuts will so overheat the economy, that the outcome will be another deflationary crash.

While he returns to the topic of the unprecedented fiscal stimulus at a time when the economy already appears to be overheating, Edwards first points out two charts we showed last week, namely the technical breakout in the 10Y and what that could mean for risk assets. Quote Edwards:

We are on the cusp of two key technical breakouts. Although most believe the US 10y has already broken above its long-term downtrend when it rose above 2.64%, our Technical Analysis team believe 3% is the proper breakout level to watch. Nevertheless as the chart below shows kissing this downtrend has typically been very bad news indeed for  equity markets (H/T to Zero Hedge).

​How much do bond yields need to rise before equity markets break? After last week, I think we now know the answer; above 2.85% seems to be enough to cause equities to slump.

Alternatively, Edwards also points out something else we touched upon last week, namely the record speculative positioning in the 10Y, and notes that "huge speculative shorts have now been built up in the US 10y, which may reduce the magnitude of for any near-term selling pressure (see left-hand chart below)."

Besides the 10Y, Edwards also highlights the recent relentless surge in the yen (and plunge in the USDJPY) and says that unlike the US 10y, where speculative excess makes it less likely to cause a breach an important technical level, "the yen positioning makes it far more likely the dollar will fall below Y107.90, and the yen could quickly surge once this key trendline is decisively broken. Certainly it was dollar weakness that helped set off the recent market flap as Mario Draghi got the heebie jeebies and accused the US of not keeping to the G20 agreement."

To be sure, the paradox of the falling dollar at a time of rising interest rates has stumped many. Here, Edwards offers his explanation for this ongoing phenomenon:

One explanation I have seen cited as driving the dollar (and US bond prices) lower is the reckless fiscal stimulus that is being enacted in the US. Normally one will expect a loose fiscal policy and a tight(er) monetary policy to result in a stronger, not weaker dollar, but I have seen dollar weakness being attributed to the likely inflationary implications of  the fiscal stimulus.

Of course we all know that market moves are always justified ex-post by a plausible macro narrative and if the dollar  decisively breaks below the Y107.90 support and yen shorts rapidly unwind, commentators will no doubt attribute this to the inflationary consequences of the Trump fiscal stimulus. Certainly the US manufacturing sector is booming – as witnessed by the ISM hovering just below 60 level, and this economic expansion is set to become the second longest on record (surpassed only by that of April 1991-March 2001).

Edwards than hands the mic to the just as critical George Magnus, who likewise slams the Trump fiscal stimulus:

“Trillion dollar deficits are just over the horizon, which will cause US government debt as a share of GDP to rise in the next several years to over 100 per cent. While debt levels alone cannot predict what will happen to bond yields, the markets fear that significant unfunded government borrowing—especially when the economy is doing well—will cause the Federal Reserve to carry on raising interest rates, in turn pushing bond yields higher. On current trends, this cyclical shift will eventually, maybe in 2019, puncture the stock market, corporate profits, and most likely the economy.”

Similar to what we discussed here last week after the budget details were leaked, Edwards then quotes the Committee for a Responsible Federal Budget, which sees stubbornly high fiscal deficits for the foreseeable future despite rosy official projections. "They see the red ink rising in fiscal 2019 to $1.2 trillion. The -adjusted- deficit projection (adjusted to more realistic economic forecasts) was set to surge from 4% in this current fiscal year to 5¾% next year and that was before the latest two-year debt-limit budget agreement which will likely see the deficit breach 6% of GDP next year!

To be sure, the shocking thing is that most Republican fiscal conservatives signed up to the fiscal madness, something we asked earlier this week when we mused rhetorically if there are any fiscal conservatives left. There were notable exceptions such as Senator Rand Paul of Kentucky who waged a lonely filibuster accusing his party of hypocrisy after it railed against deficits under Obama.

Here, Edwards gives his own view:

Whatever the arguments are in favour of tax reform in the US (and there are many), this is probably the singularly most irresponsible macro-stimulus seen in US history. To say it is ill-timed and ill-judged would be a massive  understatement.

Stating that his forecast is not clouded by political bias, the SocGen strategist doubles down, "warning that the outcome of this front-end loaded stimulus package is patently obvious. It will rapidly accelerate the end of the economic cycle."

Edwards then points out what we showed previously, namely that "things changed" not on February 2 with the spike in hourly wages, or with the passage of the Senate deal, but well prior:

Even before Congress passed the expansive two-year debt-limit budget agreement last week, bond markets were belatedly recognising the irresponsibility of the fiscal package. The surprise surge in wage inflation in the payroll report may have been the match that lighted the equity market turmoil, but it was the irresponsible fiscal stimulus that provided the kindling.

The genie is now out of the bottle and the markets will react very badly to any sign of inflationary pressure. Tim Lee of pi Economics opined recently on why the Vix will struggle to regain the very low levels of a couple of weeks back (H/T The FT's Authers' Note), “We are much further into the cycle of what might be thought of as underlying tightening of monetary conditions. The Fed is contracting its balance sheet and raising interest rates. On top of that ... US imbalances are worsening with the personal savings rate set to fall to a new low while US government finances deteriorate further. Nominal and real bond yields are rising.”

Edwards then goes on to make another prediction on the US deficit:

Because of the starting point of US fiscal policy, I have a very high confidence that in the next, not so distant, US recession, the US general government deficit will soar way beyond the 13% the OECD say was the peak for 2009. A ruinous fiscal deficit in excess of 15% of GDP will be Trump’s legacy.

At the end of the day, however, the biggest risk comes from an acceleration in the Fed's hiking intentions, as Edwards admits.

I was chatting to my colleague Kit Juckes about this and he pointed out the Fed Reserve own blog (Liberty Street Economics) had just published a three part series on the appropriate natural rate for real interest rates (or r* as the eco-geeks call it). Essentially they, like most central banks, fully subscribe to Larry Summers' secular stagnation view of the world, which means that the equilibrium real rate of interest rates is lower than before (see chart below)

Now that the Fed Funds futures strip has converged with the Fed dots, the risks to the equity markets from a further bond sell-off are twofold. First that the market raises its prediction of the number of Fed rate hikes it expects this year, and second and much more problematic, will there now be a re-appraisal of where Fed Funds are heading in the long-term?

What can force the Fed to reassess its rate hiking timeline? A burst in wage inflation, which was already observed earlier this month.

We have reported previously that the US Phillips Curve is not dead. Instead of looking at the headline unemployment rate, we should be looking at the prime-age employment rate relative to the total population and not the labour force - ie to take account the low participation rate. Certainly, as the St Louis Fed charts show below, recent wage data has not been anomalously low over the last two years and should carry on accelerating as the tightness in the labour market is exacerbated by Trump's fiscal stimulus.

But what about the nearly 100 million Americans out of the work force? Don't they provide a natural buffer to rising wages in terms of cheap potential employment? Edwards is not convinced, and cites a recent article by the FT's John Authers to make his point:

John Authers' blog posits a disturbing thesis that “there is a group of people who have been unemployed for a long time and are now unemployable. This implies that "underemployment" is not as severe as it seems, because many of those shown in the statistics as not seeking work would – indeed be incapable of – holding down a job. They lack the skills and they have been left behind. This latter theory implies a human tragedy. It also implies that the labour market is tighter than it looks, and the supply of qualified workers is limited—meaning that there is a risk of inflationary wage rises as the economy improves.”

At this point even the deflationary bear who coined the "Ice Age" term throws in the towel and predicts that either way, "wage inflation will begin to rise more quickly, driving market expectations of longterm Fed Funds higher. Just like the peak of the last two economic cycles, it will be the implosion of financial markets that causes the next recession. And President Trump's grotesquely ill-timed fiscal stimulus will be identified in retrospect as a - if not the trigger."

And just in case it was not clear how, in Edwards' opinion Trump will be the reason for blowing up the stock market that he used to swear by on twitter almost every day, here is the SocGen analyst's conclusion:

After some eighteen months of surprising to the downside, US wage and price inflation are rising briskly, putting intense downward pressure on financial markets. Yet another Fed-inspired financial Ponzi scheme now looks set to collapse into the deflationary dust. But the post-mortem will identify President Trump’s ludicrously timed fiscal stimulus as a key trigger for the collapse. A 15% deficit will be his legacy.

Maybe... but not just yet: after tumbling on today's stagflationary reports of surging inflation offset by slumping retail sales, stocks stayed in the red barely for half an hour before they burst in the green as "someone" decided to slam the VIX sending it back under 20  for the first time since Volocaust Monday. Rinse and repeat.

Comments

Pumpkin stizazz Wed, 02/14/2018 - 16:13 Permalink

Won't be just a collapse. It'll be a CATACLYSM.

 

If Trump is truly part of the solution instead of the problem, we won't waste the crisis, and will jail all who benefit at the expense of the people.

 

And for the record, well fair, snap, unemployment insurance and anything else that trickles down to the actual people IS NOT THE PROBLEM!!  But just other scapegoats to point at.

In reply to by stizazz

EddieLomax Stan522 Wed, 02/14/2018 - 11:38 Permalink

Yep, its traditional to have a boom before any bust.

The only good thing to say about the Obama years is that despite juicing the markets up with trillions of debt and printed money, his socialist policies of redistribution and regulation managed to strangle any serious economic activity.  Only the Elon Musks of the world could prosper in that sort of enviroment.

There will be a bust, but I'm waiting for the boom first, the money shuffling on the stock market isn't a boom.

In reply to by Stan522

Benito_Camela EddieLomax Wed, 02/14/2018 - 12:15 Permalink

Yes, I truly wish Obama hadn't redistributed all that taxpayer money to the military, NSA, CIA and the government contracting community. During Bush II and Obama many a fortune was made. There's a reason that the ZIP codes surrounding Washington D.C. are the richest in the country.  Socialism for the rich (or connected) and capitalism for the poor.  Since the Clinton reforms the welfare state has shrunk drastically but the amount of money flowing to the financial services and corporate MIC sectors has nearly quintupled. 

In reply to by EddieLomax

BetterRalph JimmyJones Wed, 02/14/2018 - 11:25 Permalink

A welfare cutoff needs to be followed up by a nutrition/farming education program.  Most of the people in for obese, heart attacks are because they eat high carbs and poor diet choices taught from the FOOD PYRAMID in public school for the past 50 years.

Reduce cost 80% using Karl's one-line health-care bill, but THEN eliminate even more people NEEDING the hospital in the FIRST PLACE by teaching nutrition and getting them reversed obesity/heart disease in two years.

With these plans in place, people are not going to hospitals cause they are HEALTHY, and they are able to afford to PAY CASH when they GO cause the prices for everyone are "THE SAME."

In reply to by JimmyJones

JimmyJones BetterRalph Wed, 02/14/2018 - 11:30 Permalink

Agreed, I like the new Food Stamp overhaul that Trump is suggesting.  Who knew eating a almost completely Meat and Veggie diet with plenty of fats was actually good for you and your teeth as well.  My buddy has been doing it for about 6 months now and looks good, feels good and his doctor just recently said, keep up the good work after he had some blood testing done.

In reply to by BetterRalph

Bring the Gold JimmyJones Wed, 02/14/2018 - 13:04 Permalink

You’re such a fucking tool. I hope your skull gets caved in by a canned meat can. You sick fuck with total lack of empathy practically begging for the poor to die due to poor diet while Jeff Bezos is now worth 123 Billion and the Federal Reserve grows that disparity every day while family farms continue to fail and be absorbed by big agribusiness. People like you make me sick and I am excited at the thought of your demise. You deserve nothing but death at this point if you are blaming the poor rather than the cabal destroying the country and the planet. In closing go fuck yourself with a rusty band saw. 

In reply to by JimmyJones

JimmyJones Bring the Gold Wed, 02/14/2018 - 13:39 Permalink

It my empathy that is the reason for taking a masculine approach to the issue of multi-generational welfare.  People like you enable sloth and laziness, not growth and self-improvement.  The Federal Reserve is un-constitutional and a scam on everyone.  I don't blame the poor, I blame a system that enable people to be as lazy as they can be.  Poor people that are perfectly fit to work should not EXPECT something from someone else, they need help then they need to ask and be prepared to be told NO, or told Yes but first you must do "this".  I know there is a Cabal and I hope they are brought to justice but if you think that the Cabal doesn't use the Poor as a tool then you need to wake up.  Enjoy living in Fantasy land, where its everyone but your own's fault for your own situation.  Bottom line, people that have no sense of honor will take advantage of every "safety Net" made available and call anyone that doesn't suckers if they are allowed to.  You might as well be the guy that gives a heroin addict more smack because they look so sad.

Having more kids then you can afford, not my fault, not my expense, I got my own kids to feed not yours.

Want things you can't afford, not my problem, get a second job, learn a new skill, go to the library.

Your nothing but Feminized.

 

In reply to by Bring the Gold

Ophiuchus I woke up Wed, 02/14/2018 - 12:24 Permalink

 

I would have attached a sarc/ tag or word like jest to your comment. (would jest be)

About 23 years ago a puppy was born in a litter of 2 that the mother did not want to feed. My wife forced the mother to feed the puppy she named Tootsie. The pup did not walk for about two months. We tried to give it away but no one wanted her. It lived for 16 years and did nothing but eat, defecate and urinate on the hardwood floors of the home for it's entire life.

Nature has a way of weeding out those that can not self-support. The current flavor of Socialism/entitlement is unnatural but it can serve the whole with cheap labor to build infrastructure. Once high-technology infrastructure is built and full automation enters the realm, entitlements must be eliminated and that's what we are beginning to witness at this juncture in time. Obsolete human resources will be liquidated as it becomes more of a drag on the whole.

Utopian socialism with a greatly reduced world population is the future and if you, the reader of this post, can not figure that out then you are not capable of logical deduction.  

 

Note: The infrastructure plans that have been bandied about over the last couple decades by the politicians is nothing but a bunch of malarkey. Bridges, roads, dams, and most city service infrastructure is quickly becoming obsolete as well. 

 

I'd love to be around to watch the coming world celebration of the Hoover Dam being blown. 

In reply to by I woke up

TrustbutVerify BetterRalph Wed, 02/14/2018 - 11:38 Permalink

Any welfare reduction would need to accompanied by an equal increase in the buying of American-made goods by Americans.  Where are these people, cut off from welfare, supposed to work?  At near useless low wage service jobs? - a bloated sector as is.  

Its easy enough to call for the reduction of welfare but the rest of us have to make it possible with our spending habits.  (Although it should be considered how their self initiative and, otherwise, their lives have been destroyed by welfare, perhaps intentionally to maintain an entitlement addicted underclass that will vote to maintain the monetary heroin.)  

I see the economy is doing better and I hear cheering.  But then I see our trade deficit ballooning.  It looks to me like as our personal spending increases - much of it with borrowed money - its main beneficiary is foreign manufacturing.  

Imagine if that incredibly large outflow of money that is the trade deficit stayed here.  It would be a "win" in every conceivable way.  To stay on subject; the manufacturing sector would be hiring former welfare recipients.  

In reply to by BetterRalph

Bring the Gold BetterRalph Wed, 02/14/2018 - 13:05 Permalink

They are obese due to processed foods and junk food. The former is ALL they will be given in the make America 1789 France Again program Trumpsterfire is suggesting. All the heartless fucks in here blaming the poor are so pathetically clueless as to warrant a Darwin Award. Enjoy the chaos you helped seed by blaming the poor and bending your neck for the wealthy parasites!

In reply to by BetterRalph

TBT or not TBT Bring the Gold Wed, 02/14/2018 - 13:33 Permalink

I blame the stupidity for poverty.   While you can’t fix stupid you can mitigate the damage it does and possibly condition more functional habits that bypass the pitfalls of stupidity.    Encouraging stable marriages of the classic nuclear family form goes a long way.   Encouraging the opposite (Democrat Policy) took our dumb people way backwards, but that can ground can be regained.    As Jesus didn’t quite Say:  We will always have the Dumb among us.  

In reply to by Bring the Gold

JimmyJones TBT or not TBT Wed, 02/14/2018 - 13:57 Permalink

I believe its something like 60,000 dollars a single mother of one can get in total "benefits".  That means she would have to make about 28 bucks an hour to match that and be willing to give up 40 hours of her life a week.  Thats insane and doesn't encourage people to ever get out of the system.  A masculine approach of Tuff love is the only answer, I am all for providing education and Job training but no more free handouts, all that is, is the Tax man putting a gun to the working person and taking their money and giving it to the lazy SOBs in exchange for their vote.

In reply to by TBT or not TBT

Endgame Napoleon JimmyJones Wed, 02/14/2018 - 12:28 Permalink

They’ve already cut off the able-bodied adults without dependents—the ABAWDs—and it did not make a dent in welfare usage. Anyone who has ever worked in social-welfare jobs knows why. Childless people qualified for almost nothing before they kicked them off. They were never eligible for anything but 3 months of food assistance every three years

Almost all of the welfare recipients are single moms, working part time to stay below the income limit for welfare. The other big group is illegal alien households with a sole, male breadwinner and US-born kids. They stay below the income limit in [traceable] income.

Instead of cutting welfare, the Swamp increased THE most frivolous form of welfare: refundable child tax credits, which maxed out at $6,444 until doubled by the Swamp.

This is added cash assistance that the moms can spend on anything, including mom-pampering items, even though many moms get monthly cash assistance, in addition to free rent, free food, electricity assistance and the [EITC] child tax credit. The earned-income limit for [monthly] cash assistance is only about $50 less per month than the earned-income limit for EBT and subsidized housing.  

Most people on assistance are working, contrary to the misleading debate on this subject, but NONE of them work full time unless they do it under-the-table, like illegal aliens.

Even a full-time job at $8 per hour brings in more than the earned-income limit for welfare. Womb producers cannot get welfare when they exceed the income limit, so they don’t exceed it. It is funny how the illegals, though they cannot speak a word of English, have figured out how to “work the system,” just like the citizens.

When I worked at the Department of Human Services, right before Obama was elected, the earned-income limit was slightly below $900 per month. Obama raised the limit as part of his stimulus. It did NOT result in fewer welfare recipients.

When you look at the EARNED INCOME screens at DHS, seeing the work histories of client after client in your 800-per-month caseload, you see that they go in and out of part-time jobs, just like millions of underemployed American citizens who are not fed and housed by governent to make up the difference between low, sporadic paychecks from part-time work and the cost of living.

Government rewards irresponsible sex and reproduction, bigly, much more than employers reward hard work. Employers do not have to; they have a constant supply of moms and illegal alien males who are incentivized by government to accept low pay and part-time work.

Employers also have a lot of willing, part-time-worker, married moms who are bored with their kids and equally bored with the jobs, leaving work every day at 2:30 with phones ringing off the hook with paying customers and for tons of things like weeks of baby travel soccer. They are taking jobs out of this underemployed economy to add keeping-up-with-the-Jones’ money to a spouse’s ample income. They, too, got a doubled child tax credit, while citizens struggling to cover rent that absorbs more than half of full-time, earned-only income got an upgraded tax refund that will cover a Costco membership.

This rigged system is destroying huge swathes of the US population, specifically the ones who cannot get their major household bills paid by government for sex and reproduction, which makes part-time work adequate.

Stop Rewarding Part-Time Work, Sex, Reproduction and Single-Earner Parents Through the Rigged Welfare and Tax-Welfare Codes.

There is also a massive upsurge in disability in this country. Is this a biological phenomenon, or is it one more sign of a withered economy? The truly disabled should be assisted, of course. That is not a choice, unlike the choice to have more kids than you can afford to feed in or out-of-wedlock. That is just the humane thing to do.

However, some people get hurt on a job and then stay on that stuff forever, even though they do not have dramatic and permanent disability that prevents them from attaining employment or working. 

But that does not address the issue of the dearth of full-time jobs that cover rent and groceries. If more non-working welfare recipients seek work, there will be even fewer jobs, especially since moms have to work in the fake-feminist era OR PRETEND to be working, retaining jobs even through enormous amounts of absenteeism.

The thing about all of this is not just the opportunism and the working of the welfare / tax-welfare system, but the shortage of full-time jobs that actually cover a full range of household bills without unearned income from a spouse or welfare and child-tax-credit welfare. 

Many say the shortage of quality jobs is automation-based.

This makes sense, explaining why massive amounts of absenteeism is tolerated for working parents at the top and the bottom of the economic food chain. Naturally, employers prefer a governent-supported workforce that can accept low pay and part-time hours at the bottom, explaining their tolerance for extreme absenteeism in the lower ranks.

BUT.....

Even the so-called talent — the skilled workers who are paid nine / ten / twenty times more than everyone else — take more excused and lengthy babyvacations than ever before. It is not just their frequently absentee mom-gang employees, making the low wages, who are constantly absentee with no repercussions.

If machines were not doing more of the work, all of that glaring absenteeism would not be possible. Those “skilled” working parents would be needed AT WORK.  

 

In reply to by JimmyJones

Bring the Gold Endgame Napoleon Wed, 02/14/2018 - 13:00 Permalink

I can’t wait to see people like you murdered in the streets by angry mobs. You stupid fucks pushing anti poor propaganda rather than dealing with the real issues of central banking, endless war and parasitic rentier Class you are blaming single moms for working to try and get by. The minimum wage is low as fuck and rents are sky high, medical is sky high and on and on.

 

Anyone blaming poor people for attempting to survive will be amongst the first to die when these same poor people finally rise up. Why? Because that’s what the elite are using YOU for, the buffer between them and the angry hordes and you WILL be sacrificed by them as they use your murder as an excuse to institute martial law. First though the petit bourgeoisie will swing and good riddance you collaborator with murderers. Blaming poor people would be fucking hilarious if it wasn’t so fucking dangerous. You idiots are working over time to recreate 1789 conditions and again I take cold comfort in the fact that you and yours will be the first to die.

 

A pity you don’t actually join with regular people against the parasitic elites. Your choice and eventually your neck people are reaching the boiling point and Federal reserve chairs will be on flights to Switzerland when the great zombie masses come for you. 

In reply to by Endgame Napoleon

TBT or not TBT Bring the Gold Wed, 02/14/2018 - 13:46 Permalink

Poor people are just dumb.    We shouldn’t subsidize their reproduction so much as spend and regulate in ways that mitigate the damage caused by progeny with a double whammy of parental dumb DNA in their own DNA.     Environment is half of the result, and even the slow and/or impulsive can be shown/taught ways of living that get them down a happier path for all.  Taxpayers included.    What not to do?  The Great Society.   Humans are a pair bonding species.   Use that.  Encourage that.  

In reply to by Bring the Gold

Bring the Gold JimmyJones Wed, 02/14/2018 - 12:52 Permalink

You stupid fuck there is no “labor problem” there is a “growth and profit distribution problem” namely the parasitic rentier Class is fucking everyone else with sand filled Vaseline as lube. They have been working overtime at keeping all the newly created wealth for themselves while choking out any entrepreneurial spirit before it can grow into a competitor. 

Anyone blaming poor people is a worthless piece of shit. It’s the fucking wealthy that are the problem and always have been since the damn of time when their ancestors started murdering everyone and then indoctrinating idiots like you into blaming the poor, immigrants, women, children anyone but the wealthy pulling the levers of power. Jesus Christ on a cracker. People like you will be the first to swing because like a fucking idiot you are protecting the people who need to be strung up and thusly you will serve your purpose as a buffer to protect them from the poor who eventually WILL rise up as every last drop of blood is drained from them by the fucking vampires at the FED and elsewhere at the pinnacles of power. Poor people create about 0.01% of problems. 99.99% are created by the wealthy ruling elite you illogical twat. 

In reply to by JimmyJones

optimator JimmyJones Wed, 02/14/2018 - 13:44 Permalink

Dump Food Stamps, EBT cards and the rest.  Government operated healthy food store ration cards, gift cards to each family member in their name for any of the "Goodwill" type stores.  Extra ration cards for anyone joining volunteer groups that do community service such as picking up the trash on streets and sidewalks. 

In reply to by JimmyJones

TBT or not TBT optimator Wed, 02/14/2018 - 13:52 Permalink

Government operated healthy food stores would end up stocked with grains.    Lots and lots of grains.    The USDA, the industry and big education -captured federal  ag department, is the home of ethanol subsidies, corn syrup, toxic seed oils, grain subsidies...and drum roll...food stamps.      They ensure that plenty of cheap farm products are shoveled into tanks and mouths.     Primaries start in Iowa for a reason.  A bad reason. 

In reply to by optimator