Jim Kunstler Warns "An Unspooling Has Begun"

Authored by James Howard Kunstler via Kunstler.com,

With spring, things come unstuck; an unspooling has begun.

The turnaround at the FBI and Department of Justice has been so swift that even The New York Times has shut up about collusion with Russia - at the same time omitting to report what appears to have been a wholly politicized FBI upper echelon intruding on the 2016 election campaign, and then laboring stealthily to un-do the election result.

The ominous silence enveloping the DOJ the week after Andrew McCabe’s firing - and before the release of the FBI Inspector General’s report - suggests to me that a grand jury is about to convene and indictments are in process, not necessarily from Special Prosecutor Robert Mueller’s office. The evidence already publicly-aired about FBI machinations and interventions on behalf of Hillary Clinton and against Donald Trump looks bad from any angle, and the wonder was that it took so long for anyone at the agency to answer for it.

McCabe is gone from office and, apparently hung out to dry on the recommendation of his own colleagues. Do not think for a moment that he will just ride off into the sunset. Meanwhile, Peter Strzok, Lisa Page, Bruce Ohr, have been sent to the FBI study hall pending some other shoes dropping in a grand jury room. James Comey is out hustling a book he slapped together to manage the optics of his own legal predicament (evidently, lying to a congressional committee). And way out in orbit beyond the gravitation of the FBI, lurk those two other scoundrels, John Brennan, former head of the CIA (now a CNN blabbermouth), and James Clapper, former Director of National Intelligence, a new and redundant post in the Deep State’s intel matrix (and ditto a CNN blabbermouth). Brennan especially has been provoked to issue blunt Twitter threats against Mr. Trump, suggesting he might be entering a legal squeeze himself.

None of these public servants have cut a plea bargain yet, as far as is publicly known, but they are all, for sure, in a lot of trouble. Culpability may not stop with them. Tendrils of evidence point to a coordinated campaign that included the Obama White House and the Democratic National Committee starring Hillary Clinton. Robert Mueller even comes into the picture both at the Uranium One end of the story and the other end concerning the activities of his old friend, Mr. Comey. Most tellingly of all, Attorney General Jeff Sessions was not shoved out of office but remains shrouded in silence and mystery as this melodrama plays out, tick, tick, tick.

None of this makes President Trump a more reassuring figure. His lack of decorum remains as awesome as his apparent lack of common sense. But he has labored against the most intense campaign of coordinated calumny ever seen against a chief executive and his fortitude, at least, is impressive. What is unspooling for him, and the body politic, are the nation’s finances, and the dog of an economy that gets wagged by finance. Yesterday’s 724-point dump in the Dow Jones Industrial Average is liable to not be a fluke event, but the beginning of a cascade into the pitiless maw of reality - the reality that just about everything is grossly mispriced.

There is plenty of dysfunction in plain sight to suggest that the financial markets can’t bear the strain of unreality anymore. Between the burgeoning trade wars and the adoption in congress this week of a fiscally suicidal spending bill, you’d want to put your fingers in your ears to not be deafened by the roar of markets tumbling. A 40 to 75 percent drop in the equity markets will leave a lot of one-percent big fish gasping on the beach as the tide rolls out. But the minnows and anchovies will suffer too, as regular economic activity declines in response to tumbling markets. And then the Federal Reserve will ride to the rescue with QE-4, which will very sharply drive the dollar toward worthlessness. The result: a nation with a sucking chest wound, whirling around the drain en route to political pandemonium.

Comments

DillyDilly Fri, 03/23/2018 - 14:28 Permalink

Look on the bright side Kuntsler ~ You'll keep selling doom porn articles & newsletters so you can keep playing the $2 exacta & daily double tickets at the Saratoga Springs late summer meet.

 

Maybe you'll hit the pick  6

Deep Snorkeler FreeShitter Fri, 03/23/2018 - 14:35 Permalink

America the Dark Vacuum

1. an entire nation made up of disturbing psychographic profiles

2. an economy built of hype and fraud

3. unbelievable stock and house prices

4. daily news: disinformation, misinformation,

myths- by uncredentialed pundits, sinister think tanks

5. a $700 billion defense budget increased by $66 billion

6. your NSA dossiers are up to date as of today

 

In reply to by FreeShitter

Koba the Dread August Fri, 03/23/2018 - 20:00 Permalink

"Perhaps the scales will fall from the eyes of assorted Dems. . ." Had Sessions come on like gang busters, there would have been a civil war. By slowly, slowly unpacking the crimes of the Clintons and the Obama administration, people will begin to see how hideous their crimes were, how destructive they were to the country. These same people will never like Donald Trump, will never approve of his presidency. But slowly, slowly they will begin to understand that the Trump presidency prevented a wholesale co-opting of the entire government by the Clinton crime family.

Anyway, let us hope it plays out this way.

In reply to by August

DillyDilly 11b40 Fri, 03/23/2018 - 15:51 Permalink

I'm not buying much of anything these days...

 

I got guns, rifles, 15k rds of ammo, kukris, tactical tommys, flints, kerosene + lamps, fels-naptha, nitric, hydrochloric, sulfuric & others, erlenmeyer flasks, measuring gauges, food, land, a well, Ag&Au phyzz, a little cash, PVC, generators, seeds, lumber, tools, all terrain vehicles, pickups, & even some cryptos...

 

I was out of fresh garlic this morning & there's 2 feet of snow on the ground ~ so I bought some of that today (even tho I already have a lot of the dry stuff).

 

I take each day as it comes.

 

 

In reply to by 11b40

DillyDilly rent slave Fri, 03/23/2018 - 17:24 Permalink

& hence my ORIGINAL COMMENT

 

"so you can keep playing the $2 exacta & daily double tickets at the Saratoga Springs late summer meet"

 

which is the only one of interest ~ that's where TOM SMITH found Seabiscuit

 

Everybody knows that SS is a late summer meet... It's the DEL MAR of the east... It's hard to run meets at Aqueduct & Belmont, in March, under 6 feet of snow...

In reply to by rent slave

dutch04 GlassHouse101 Fri, 03/23/2018 - 14:52 Permalink

horrendous strategy.  You don't think there's a million and one other poor slobs thinking they'll try to time the PM market? 

Premiums skyrocketed the last time market crashed in '08, and I would LOVE to know what retail investor was able to gobble up all that phyzz at $8 an oz.  No remotely sane dealer was selling phyzz at anywhere near spot price during beginning of GFC.  

Dollar crashes (from its already obliterated value), YOU GET NONE ... at a remotely reasonable USD price ... if you get any at all.

 

lol love the downvote! Cog Diss Much?

In reply to by GlassHouse101

dutch04 GlassHouse101 Fri, 03/23/2018 - 16:19 Permalink

Looking at the 90% increase on phyzz premiums in '08 is YOUR friend.  Unless you're a whale (which I highly doubt), you won't be cutting in front of the mile long retail line waiting to pounce on any metal they can get their dirty grubbing hands on. 

I care not how much FRN you have.   Retail investment phyzz will be even scarcer than in '08, and phyzz dealers will fart in your general direction if you think you can just throw some bennies at them to get MAYBE something worth holding in your possession.  

Not sure if you’re being purposefully obtuse or really that dense on how this scenario will play out.  

In reply to by GlassHouse101

karenm GlassHouse101 Fri, 03/23/2018 - 15:04 Permalink

Contrary to what most believe, the FED DOES HAVE LIMITS TO ITS MONEY CREATION. What are they? It's called hyperinflation, something the FED cannot control if/when it hits, so they must hit the brakes before it sets in, which is what all this inflation talk is about. That is their limit.

 

And folks, they've hit the end of those limits. 

 

 

In reply to by GlassHouse101

Is-Be karenm Fri, 03/23/2018 - 18:15 Permalink

Thinking allowed:

On the other hand money is a claim on resources. Too many claims, too few resources. (Nichol Foss)

But Catherine Austin Fitts says $21T is hiding under sombodies bed. Release that money and all is well? No. All is not well. You've put gasoline on the fire.

Alternative hypothesis; The FED giveth and the FED taketh away.

Closer. 

I like it. The FED Trumpets© the creation of money with a flourish, and then takes it all back with a sleight of hand.

Catherine didn't find a stash. She found the plug hole.

If I'm right (I rarely am), we've been watching a dog and pony show.

Anyhow, Cold Fusion was found in a separate, unrelated experiment. The Sapphire Project over there on the Thunderbolts Project.

And that is the Real News. For without Energy, nothing happens.

Wait right there. I'll go get some really surprised scientists for you.

https://youtu.be/keJAQIWEyzY

In reply to by karenm

Dragon HAwk Fri, 03/23/2018 - 14:35 Permalink

Rose Colored Glasses aren't going to work for Long in This Market.

  Betting against Reality, has this one serious Flaw.

I'd mention it, but that would spoil all the fun for those of us Who Understand.

11b40 Dragon HAwk Fri, 03/23/2018 - 15:43 Permalink

Well, let me mention it for you, just in case some are getting ideas about shorting the markets.

The ONLY reason the market has soared to these levels is because the FED has pulled out all the stops to make it so.  It will crash if, and only if, they want it to.  They will buy the whole freaking market if they think they have to.  

So, short this sucker if you want to, but you better do so with extreme caution, hedges, and minor positions relative to your net worth....and unless you are an experienced pro with deep pockets, stay the hell away from leverage on the short side.

 

This is voice of experience talking to you.

In reply to by Dragon HAwk

wmbz Fri, 03/23/2018 - 14:35 Permalink

"the reality that just about everything is grossly mispriced".

Really? No shit?

I wonder how on earth that could have come to be?

johand inmywallet Fri, 03/23/2018 - 14:37 Permalink

No wonder the commies want a gun free America. When the dirty laundry is hung out to dry, and the petrodollar is dead, markets skanked, the folks with the guns will have half a chance at survival.

Thus country is so fucked!

DemandSider Fri, 03/23/2018 - 14:41 Permalink

Trump's throwing a bone to U.S. manufacturing workers,  time to prick the bubble with more rate hikes from the parasite sector before this democracy thing catches on.