Inflation Is Coming

All the discussion of the current economic decline and whether the stock market has bottomed is missing the point. The damage being done now by Federal Government spending and Federal Reserve money printing to cushion the immediate impact has adverse consequences worse than the Coronavirus. 

The money the Federal Reserve is printing isn't going to have value. It isn't going to buy anything. Prices are going to skyrocket. And in fact, this coronavirus is accelerating that process because it's reducing the supply of goods available to buy.

This Crisis Is Economic, Not Merely Financial

The financial crisis of 2008 was a cake walk compared to this. All that happened in 2008 was real estate prices fell, borrowers defaulted, and lenders lost money. Today global commerce is grading to a halt. Production is shutting down. This crisis is economic, not merely financial.

Game Over!

In 2008 we bailed out the banks and GSE's, as they owned the mortgages. Today it's not just mortgage debtors who can't pay, it's all debtors. It's not just banks that need to be bailed out, but every leveraged business in every industry. Who is left to do the bailing? Game over!

The Russell 2000 Index Is Down 33% From Its High

The Russell 2000 Index, the purest stock play on the U.S. economy, is down 33 percent from its record high set in August of 2018, wiping out all the gains from June of 2016, 3 months before real Donald Trump was elected President. A Presidency that lives by the stock market dies by it as well!

Related trading instruments: iShares Russell 2000 Index ETF (IWM), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), SPDR Dow Jones Industrial Average ETF (DIA)

This Is Similar To 2008

CNBC anchors keep repeating that what is happening now bears no resemblance to what happened in 2008. Not only is this extremely similar to 2008, as in both cases a credit bubble popped, but it's also similar in that none of the anchors on CNBC saw that crisis coming either!

Why Own Bitcoin?

Bitcoin was created after the 2008 financial crisis and hodlers always assumed that it would be the safe-haven of choice during the next. Looks like they assumed wrong. If Bitcoin is not a currency, not a store of value, and not a safe haven, then what is it and why own it?