Tag Archives: bonds

Tell your sons and daughters not to have kids for your grandchildren are out of luck: The art, physics, and calculus of the future political economy ….

During the 2024 election, Democrats will be blaming Donald Trump for the slump in the economy. What Democrats will not tell you is the slump will be due to the falling prices of assets as Baby Boomers, born between 1946 and 1964, who have been deemed as useless and/or unemployable, will be forced to sell off assets on the cheap to make up for lost and non-replaceable income. As prices for bonds fall because of their increased availability in the market, interest rates will rise causing increased difficulty in long term, credit based purchasing and education. Those who started hoarding cash after the last so called great recession will be able to buy these assets on the cheap while enjoying the income derived from increased interest rates paid on the hoarded cash and cheap assets purchased.

Whoa onto the man or woman running for office during this period. They will not be able to use the old, “It was the last administration, stupid” argument. By this time the current growing frustration with “democracy”, on the rise now for the better part of the last decade, will reach its breaking point as market-driven democracies find themselves unable to deliver. Elected officials will have to make hard decisions as their tax bases shrink due to falling incomes and the ability of people with excess capital to build moats around themselves by replacing traditional police and community services once provided by government with the same services provided by private contractors and artificial intelligence.

As government finds it more difficult to implement effective public policy for alleviating the burdens of increased prices, it may seek more draconian approaches to reining in monetary practices while implementing more burdensome fiscal policy. Government only knows how to tax and inflict violent police action. I “pray” for the unborn and curse the current mentality that just because they have a car, a job, and can take a vacation that life is good. That delusion will have to be paid for and very soon.

Bubba, Bonds, and Blacks …

As much as blacks loved Bill Clinton, blacks never applied the most important political lesson Bubba himself learned: He who controls the bond markets, wins. Collective or group politics hasn’t gotten blacks much of anything over the past 50 years, but a collective, focused targeting of the bond markets just might.

Yes, there are a few “here and there” types posting on LinkedIn about how well their panel discussions are going and how many awards they are receiving from some social justice warrior group, but the masses are not winning because most of the cream is staying in the cups on the top.

What Mr Clinton realized back in 1994 was that re-election hinged on a happy bond market. Maintaining an economy with low interest rates meant increases in asset prices leading to higher valued collateral upon which more credit could be issued.

Now imagine if 13% of the American population were able to take a 13% position in the bond market. The potential shock waves that synchronized buying and selling would cause would have policy makers asking that group, “Hey! What do you want?”
Blacks wouldn’t need another “get out and vote drive” ever again. The Montgomery bus boycott would pale in significance.

Unfortunately, the inside the box, plantation mentality of partisan politics, especially as orchestrated by liberals, keeps blacks in “Massa ain’t gave me permission yet” mindset. I am seeing cracks in that narrative, but there is still more work to be done….

“You mean to tell me that the success of the economic program and my re-election hinges on the Federal Reserve and a bunch of fucking bond traders?” — William Jefferson Clinton

“I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” — James Carville