What to Expect

With the new rush to "austerity" in places like the U.K. and Germany, the U.S. monetary authorities can no longer rely on the rest of The West to ride herd with more Quantitative Easing. So, the powers that be are bound to set events in motion that will allow them to do that which they are so desperate to do. As the economy, and its bellwether, the stock market, which under girds every pension in the land, are knocked for even more of a loop than before, the way will not so gradually or gently be paved for the cowardly and corrupt Federal Legislature to enact QEII.

Our legislature wouldn't go for it today, but when the public starts screaming for largesse as they witness their pensions disintegrate, and as war in the Middle East is inevitably intensified, all will be made to feel it is their patriotic duty to get behind a money printing exercise that will make the last one seem tepid by comparison. And just in case appeals to patriotism do not have the desired effect, rest assured that, by hook or by crook, what is left of our devalued assets will be coerced into such flagging instruments as municipal and Treasury bonds, all while the price of basic necessities go though the roof.

In the meantime, as pointed out here, President Obama is doing his best imitation of a bland, if not benign, despot, as he bars access to The Gulf of Mexico disaster, assists BP in covering it up, and helps the wayward oil major and a lapdog press to manufacture and disseminate copious amounts of disinformation and propaganda about the prospects for capping the gusher. Enjoy the rest of your summer.