Forecast 2025 — Taking Out the Trash

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Posted on 12/28/2024 4:53:32 AM PST by MtnClimber

"A core reflex in these decades of postmodern insanity was constant rejection of things we thought we knew in favor of New, Improved Beliefs packaged from above.” — Matt Taibbi, Racket News.

I would guess that you’re feeling as if anything might happen now. It’s hard to rule out even the possibility that we could all be vaporized before moving onto the next mundane chore of the day. The world order is dangerously in flux. America’s Woke-Jacobin “Joe Biden” regime was defeated in the 2024 election, but they were apparently just a front for the sinister entity we call the “blob” or the Deep State, which in recent years has consistently and garishly acted against our country’s interests. So, the blob abides, and it probably weaves schemes in the deep background of daily life even as a new government awaits. But if the Woke-Jacobin Biden-istas were tied-in with the so-called “globalist” enterprise centered around the EU bureaucracy, with assistance from the World Economic Forum’s network of zillionaires and bankers. . . well, that coalition looks rather broken now. It’s doing a hurt-dance. It’s on the run, a little bit.

What is not broken for the moment — a tenuous moment — is the new Trump regime’s determination to correct the disorders of Western Civ, starting with the affairs of the USA, according to age-old reality-based norms of behavior and good-faith relations between the people and their government. Trust was broken and must be restored. The President-elect has assembled an extraordinary team of reformers, if they can get to their posts without subversion. And, of course, Mr. Trump himself has to evade further attempts to rub him out, to knock him off the game-board before he can take office, and then he must survive the months beyond his inauguration. So, you are correct to be nervous.

Paradoxically, Mr. Trump has to initially manage the US government as if it deserves a sense of reassuring continuity, which, in many respects it does not deserve. So many institutions and relationships between them have been perverted and damaged. How do we pretend that the upper layers of management in any federal agency — the strata who really run things below the top “political” appointees — can continue in-place as if all that perversion never happened? The Department of Justice and the FBI are filled with lawyers and agents who abused their power egregiously and went to war against the American people. The agency’s work will just have to stop for a while. The nation can probably endure if investigations and prosecutions are suspended for sixty days while the personnel issues get sorted out — who goes and who stays.

But what about the Defense Department and the CIA? The country must be able to defend itself. These departments are the lairs of the more dangerously entrenched blob actors. Both DOD and the CIA have come to be organized as racketeering operations. Both are involved in domestic money-laundering activities at the giant scale, and in rackets abroad — such as the many grifts around Ukraine, in which giant financial entities like BlackRock are partnered-in. (You know, for instance, don’t you, that BlackRock was poised to acquire control of Ukraine’s natural resource base, until Mr. Putin’s resolve ended that fantasy.) And the CIA is suspected of being deeply involved in the Mexican crime cartel operations, both around drugs and human trafficking. The imputations are sickening. The DOD and the CIA will fight desperately to preserve their perqs and projects, and to stay out of jail. But until now they have not really been challenged.

The public health agencies, FDA, NIAID, CDC, NIH, and so on have become outright mafias, with labyrinths of money-laundering channels, government grant-grifting, and pharma ph**kery, not least around the still-mysterious, homicidal Covid-19 prank, with the deadly mRNA vaccine program piggybacked onto it. Their nemesis, RFK, Jr., is coming on-board to oversee exactly what happened in these corrupt fiefdoms. If you have read his books about Dr. Anthony Fauci, you know that he is adequately prepared to discover what took US public health off-the-rails. Don’t forget, also, that the entire medical profession lies in a slough of dishonor for going along with the fake-and-deadly Covid-19 treatment protocols (intubation, remdesivir, midazolam, and morphine) that killed so many people needlessly. Plus, the doctors’ dishonest demonization of ivermectin and other viable treatments, plus the disgraceful, mendacious behavior of the medical journals in the whole filthy scam. Next, consider the rickety, cruel, Kafkaesque US health insurance system that is now all but running the doctors’ practices. It is an unholy mess. What can you do but wish Mr. Kennedy God-speed in beginning to unravel it all? Surely, a lot of people involved deserve to go to prison.

For all you know, the heavyweights of blobdom might be plotting some sort of coup during the Holiday season to prevent Mr. Trump from taking power on January 20. Failure to mount a coup would actually signal some essential weakness in the blob’s own enterprise architecture. The blob has certainly tried everything so far up to an actual coup, that is, a sharp discontinuity in constitutional government — like, with tanks around the US Capitol and generals in the Oval Office. The blob’s other problem is that it has no powerful individual leader to rally behind, no one with charisma. It has only its multifarious tentacles — departments, agencies, offices, and operations — which Mr. Trump and his lieutenants can lop off in broad strokes. They can cashier generals, defund projects, shut-down offices and programs, send US Marshals into CIA headquarters in Langley, VA, to lockdown document archives while flushing out employees. Early on, the Trump team has got to assess the patriotism of individuals in these departments. Based on blob behavior of the past decade, no one’s fidelity to the constitution can be taken-for-granted.

It will surely be necessary to begin open inquiries into the recent behavior of some prominent political figures in order to demonstrate a serious intent to reform. For just one example, Alejandro Mayorkas, the Homeland Security chief who threw the US Border wide open for four years, presents a probable cause case for treason. Perhaps the new Attorney General can convene a grand jury away from the blob-dominated DC federal court district, say in Texas where these crimes on the border were actually committed — crimes such as ordering the US Border Patrol to stand down while whole caravans waded the Rio Grande.

Attorney General Merrick Garland needs to answer publicly for his coordination of a massive DOJ lawfare conspiracy. How exactly did Deputy US AG Matthew Colangelo end up in Manhattan DA Alvin Bragg’s office? Who green-lighted the harsh prosecutions of Jan 6 suspects by Matthew Graves, in particular their long pre-trial detentions in solitary confinement? Who in the White House confabbed with attorney Nathan Wade to manage the Fulton County case against Mr. Trump and eighteen other defendants? Why did Delaware federal attorney David Weiss allow the statute of limitations run out on Hunter Biden’s 2014 and 2015 tax evasion cases? Stuff like that.

And, of course, FBI Director Christopher Wray needs to answer for the Jan 6 DNC / RNC pipe bomb caper, and the roles of “confidential human sources” in the Jan 6 Capitol riot — including the antics of the notorious Ray Epps. Plus, the three years of RussiaGate and his cavalier use of the FISA Courts. Please subpoena SC District Judge James Boasberg on that, too, while you’re at it. It will not take many inquiries like these to get the point across. The point will be that after many years of absence, consequence is back on the table for those who abuse power.

During the transition — Nov 6 to Jan 20 — Mr. Trump has equivocated a bit about his intentions to bring back consequence in federal operations. On one hand he claims he’s “not interested in retribution,” while on the other hand he has named appointees such as Kash Patel at FBI and John Ratcliffe at CIA who are intimately acquainted with the illegal activities in those places and on-the-record as eager to set consequence in motion. It’s hard to imagine they will demur from getting answers about what has been going on and who is responsible, and take corrective measures.

If he makes it through confirmation, it may be less difficult for a Defense Secretary Pete Hegseth to straighten out the Pentagon. The military is much more explicitly hierarchical, and orders are orders. Generals and bureaucrats will be ordered out of the building. But then there are large dark pools of activity hidden from the public, things like DARPA and its many offshoots, that may be harder to penetrate. You must imagine that there are operations hidden even from the SecDef. We keep hearing that the Pentagon can’t pass an audit and can’t account for trillions of mis-spent dollars. Guess what? Someone (or many someones) can be court-martialed for that. Again: consequence returns. Suddenly things are done correctly. Perhaps even a lost sense of honor is restored.

The Fiscal Abyss

Who knows what Elon & Vivek’s DOGE group can accomplish? But there are hard limits in the fiscal whoppers like Social Security, Medicare and Medicaid, and veterans benefits that won’t yield much. Blogger David Stockman, former head of the Congressional Budget Office, estimates that even firing three-quarters of all federal employees would only save about $700 billion in savings, which is not enough to avoid a debt death spiral. The carried debt alone could sink whatever else Mr. Trump seeks to accomplish, especially as it can morph into a lethal currency crisis at any time — a runaway inflation and / or collapse of the bond market that would put a lot of people and enterprises out of business, bringing on a new great depression.

There’s always talk about “growing” our way out of debt. I doubt we will be able to do that in the proposed way, based on economic dynamics we’ll get to further below. In his first term, Mr. Trump made noises about defaulting on US debt. I think you will hear chatter about doing just that in the early days of 2025. Though it sounds horrendous, default will happen one way or another: either an honest repudiation of treasury paper (Sorry, we just can’t make the payments anymore), or by allowing currency collapse to do the dirty work for us (Sorry, but our money is worthless. Here’s a billion dollars. . . enjoy the bagel you get for it).

Much of the rest of the world is in similar straits debt-wise, especially Europe and China. The Bretton Woods system for regulating world money has been brain-dead for many years. It’s not hard to imagine something replacing it, including the US dollar’s status as the world’s reserve currency (with all its exorbitant privileges). It remains to be seen what role, if any, cryptocurrencies might play in world trade. Many people are wowed by Bitcoin’s journey above $100,000 lately. I’m still not persuaded that it’s anything but a classic bubble in a speculation that represents nothing — except maybe the electricity expended in processing the math attached to its “creation.” A blogger friend makes this interesting point:

What will matter is that one Bitcoin transaction is equivalent to about a month of electricity for the average US household. As Bitcoin grows, energy “consumption” grows exponentially. Note, I said CONSUMPTION, NOT PRODUCTION. If you believe in infinite cheap energy fueled by infinite free money and debt, then all the power to you! No pun intended. . . . — Wendy Williamson

For all the “wow,” Bitcoin still lacks the principal properties of true money. It’s not a practical medium of exchange (buying stuff), it’s not a useful store of value (with its periodic crashes and zooms), nor a reliable index of prices (ditto). To me, it looks like a fugazy that has made a small number of people very rich within a limited window of history. Naturally, the people who got rich, who converted their Bitcoins into villas, yachts, and shares of Nvidia, are infatuated with Bitcoin and the phenomenon of crypto. If there is one thing that might characterize the new times we are entering, it will be the recognition that real things have more value than fake things. We have been traumatized by fakery, and going forward great effort will go into identifying it. Our survival depends on being able to discern the fake from the real.

Money and Economy

Does the world really need a certified universal money agreement? Nothing like Bretton Woods existed until eighty years ago, and it came into being only because the USA so dominated the globe after a ruinous war in Europe and Asia it could command the world’s obedience — at least the parts that weren’t communist. Before that, currencies, monies, and commodities existed, of course, and people took calculated chances trading in them. Usually, but not always, one nation’s currency dominated for a while, as the pound sterling did before World War Two. But paper currencies are a relative novelty. The US only started using paper money in the 1860s. When “money” was mostly gold or silver coin, exchange rates were easy to determine by the purity and weight of a coin. When paper entered the scene, bankers, speculators, and merchants had to do their own due diligence to discover whether X-tons of iron ore, tons of coal, or wheat were worth trading for X-amount of yen, deutschmarks, pounds sterling, and dollars. Those quandaries birthed hedging in currency and commodity trades — a device now wildly perverted, deforming the dynamics of risk and price discovery in everything.

We are probably headed back into that world of diverse monies with inherent risks, part and parcel with a multi-polar world of regional hegemons. The US dollar can no longer act as the universal collateral guaranteeing all transactions. Hence, the trade in debt, bonds, and borrowing re-acquires layers of risk absent for a long time. Government borrowing — issuance of sovereign bonds — necessarily declines in that milieu as moral hazard reappears in financial affairs and governments can no longer promiscuously float their spending on debt. Other countries have already discontinued their purchases of US Treasury paper. Where will the customers for US debt come from? (Answer: nowhere.) It’s just another way that nations and their people are forced to get real in a new disposition of things.

For now, it has probably been demonstrated that central bank digital currencies are unlikely to work. (Nigeria’s eNaira program, the world’s first large-scale experiment in CBDCs flopped miserably.) Along with the tyrannical surveillance issues, too many citizens rely on transacting business in cash, and if the cash turns no-good, they will find other instruments for transacting, perhaps even things as crude and straightforward as gold and silver, with no counter-party risk, no leverage, and no bullshit attached. To me, though, reversion to hard currency would imply a devolution to far less-complex economies and much lower standards of living.

All that runs counter to the current excitement about technological advances compensating for declining systems of modernity — derived from the 20th century religion of endless, limitless progress — creating evermore available (fake) capital. These are the expectations for Artificial Intelligence, advances in “green technology” (especially enhanced electric batteries), next-generation nuclear power, and energy tech not yet achieved but dreamed about such as atomic fusion and zero-point energy.

Oil

For now, the primary resource of our economy remains oil. All other technologies, including nuclear and “green” tech, still require oil for the production of their hardware and maintenance. US oil production reached an all-time high in late 2024 at 13.6million barrels a day — way higher than the old, pre-fracking era “peak oil” figure of 10-million b/d from 1970, and superficially impressive. Fracking has made all the difference the past two decades, but it is not a permanent installation in the human condition. The continuing production increase has come from enhanced drilling techniques even while the supply of tier-one “sweet-spots” in the Permian Basin of West Texas has markedly declined — and the Permian Basin is the last redoubt of economic shale oil (oil economically worth recovering) in the USA.

Mr. Trump has promised loudly and often to “Drill, baby, drill.” Aggressive drilling and opening remaining frontiers like the Arctic National Wildlife Refuge to oil production could extend America’s oil abundance on the short end, but there are no meaningful “exploration” prospects left in North America beyond that. We’ll be fooling ourselves. It’s been a nice ride, but the end is in sight.

In the Permian Basin, the best drilling locations are increasingly rare as the more productive areas have been exploited. Production In the Permian has declined by 15-percent since 2020, according to data from Enverus. Break-even costs are rising. New well productivity per lateral foot is declining. ZIRP is bygone and the cost of capital (interest on borrowed money) is up with inflation. From 2009 to 2020 — the ZIRP years — investors flocked to shale oil stocks since they couldn’t make a buck on bonds. But the shale producers had trouble making money, even though they produced a lot of oil. Many went bankrupt. After that, investors grew shy about investing in shale oil. Going forward, the capital might not be there for these capital-intensive operations.

With the old oil — say, conventional oil in Oklahoma, 1950, where you just banged a pipe in the ground and oil gushed out — the cost of drilling a well was around $500,000 per well (in today’s money). They produced thousands of barrels a day for decades. Shale oil wells cost between $6-million to $12-million per well, with horizontal drilling and fracking (utilizing vast amounts of water trucked-in, plus chemicals and fracking sand to keep the fractures open). The shale wells produce far less per day than the old conventional wells and they decline by over 50-percent in one year. After three or four years, they’re done. Do you see the difference?

Higher oil prices are required to justify new capital expenditure. Yet day-by-day the declining American middle-class steadily loses its ability to pay more for oil and individuals and households go broke under the strain of higher prices. The overall dynamic of our economy starts to wobble. Fewer people can qualify for car loans, which is mainly the way American acquire cars. Car-makers are stuck with excess inventory. Eventually the car-makers’ business model fails. And, by the way, it ought to be clear by now that we will not transition from oil-based cars to all-electric cars — surely not at the same scale of mass ownership. Electric cars just cost too much.

What happens when mass motoring becomes incrementally less mass, less democratic, something only for the well-off? Answer: It stops. It becomes a focus of resentment and rage. It loses its government subsidies (highway repair, etc). It also leads to the demise of America’s premier living arrangement: suburbia. I have written about this quandary for years. It has been hanging over America’s head, and we are unable to imagine how it plays out — mainly because of the titanic sunk-costs involved. We’ve invested so much of our historic cumulative wealth in building the infrastructure for this living arrangement that letting go of it is unthinkable. Yet, it is already becoming severely dysfunctional. And, of course, as that happens, its components — the tract houses, the strip malls, the office parks — will lose their value, meaning that it will become ever-harder for many people to successfully cash out of it and move elsewhere.

And even so, where would that elsewhere be? That problem is exacerbated by the ruinous condition of American cities and their future trajectory. Many US cities have already failed outright — Detroit, St. Louis, Cleveland, Baltimore, Buffalo etc. They are abysmally governed and falling to pieces. They are filled with purposeless humanity, lost souls, dangerous criminals, and ever-fewer places of employment. Even the arguably still-successful cities — New York, Boston, Miami — have attained a scale of operation that is not sustainable, not consistent with the resource and capital scarcities to come. They will have to contract, drop services, lose population — and the process will be very messy. Eventually, they’ll be smaller, but they still occupy some of the best geographical sites, so they will not disappear altogether. The contraction will take a long time to resolve.

For the present, that leaves the thousands of small towns across America that have been drained of vitality and investment for decades. Despite the damage, they have two big virtues: they already exist at a scale more congenial to redevelopment in a resource-and-capital constrained time; and many of them are geographically proximate to places where food can be grown for their own support. We will discover that this is where the action will move to. This is where much of the remaining population will resettle as the giant cities and suburbia enter their epic decline.

More Change Than You Bargained For

The “Golden Age” euphoria is palpable in these weeks before the Trump inauguration. Wall Street is in a rapture imagining a renaissance of corporate enterprise as a punitive regulatory regime lifts. But, just as gigantic cities tend to fail on the issue of scale, the economy as a whole is in need of reorganizing at a finer grain of enterprise. Gigantism itself, gigantic corporations with their tropism for monopoly, have become increasingly ruinous for communities, households, and individual lives in our time. Americans need more autonomy in their economic lives. The trouble is, we might have to get there the hard way — via a general crash of things organized at too large a scale, which would force the necessary rebuild at a smaller and more local scale. This implies a coming second great depression.

It’s not hard to imagine such a crash occurring in the first year of a Trump regime. For one thing, there are surely nefarious parties and persons who would like to see it happen, who might even seek to engineer a financial train wreck for revenge against Mr. Trump and his followers. Anyway, a severely overvalued stock market is begging for correction. Ditto the housing market (and the over-valued collateral it represents) that so much of finance rests on. Too many banks are insolvent. The debt quagmire ensures that government can’t rush to the rescue as it has in past emergencies to bail out the banks without destroying the dollar.

You might also wonder about the proposition laid out in David Rogers Webb’s book, The Great Taking, about the meticulously planned scheme for central bankers to seize much of the collateral in the world, meaning all your stuff. Sounds a little grandiose and preposterous, perhaps, but the fact is that the regulatory authorities of Western Civ have rewritten the banking rules stealthily over the years so that anyone with a bank account is now considered just a low-order creditor whose assets can be taken in the event of a banking emergency. Your savings are just labeled “collateral,” and your “ownership” of the assets is not what you thought it was. The scam seems fantastic, but the rules are in place, waiting to be sprung. Mr. Webb’s concise 99-page book is available free as a pdf HERE.......SNIP......[This is about one half of the article. Please visit the source site, Kunstler.com, if you wish to read the rest.

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1 posted on 12/28/2024 4:53:32 AM PST by MtnClimber

To: MtnClimber

2 posted on 12/28/2024 4:53:45 AM PST by MtnClimber (For photos of scenery, wildlife and climbing, click on my screen name for my FR home page.)

To: MtnClimber

3 posted on 12/28/2024 4:58:29 AM PST by MtnClimber (For photos of scenery, wildlife and climbing, click on my screen name for my FR home page.)

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