Category Archive: 5.) Charles Hugh Smith

What Collapsed the Middle Class?

The middle class has already collapsed, but thanks to debt and bubbles, this reality has been temporarily cloaked. What collapsed the middle class? In many ways the answer echoes an Agatha Christie mystery: rather than there being one guilty party, a number of suspects participated in the collapse of the middle class.

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The Top 10percent Is Doing Just Fine, The Middle Class Is Dying on the Vine

Please study these charts as a means of understanding the inevitability of economic stagnation and a revolt of the decapitalized middle class.

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Our Fragile, Brittle Stock Market

This heavily managed 'market structure' is far from equilibrium and extremely prone to instability.

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Silver Swans, Maginot Lines and the Unforeseen Risks of Collapse

Our Nobility's assessment of risk and their war-gaming of vulnerabilities are fatally deficient. Many people have heard of Nassim Taleb's black swan but fewer understand how few events qualify as black swans. Per Wikipedia, a black swan is an unpredictable or unforeseen event, typically one with extreme consequences, an event that is beyond what is normally expected of a situation and has potentially severe consequences.

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The Coming Revolt of the Middle Class

That's how Neofeudal systems collapse: the tax donkeys and debt-serfs finally rebel and start demanding the $50 trillion river of capital take a new course. The Great American Middle Class has stood meekly by while the New Nobility stripmined $50 trillion from the middle and working classes. As this RAND report documents, $50 trillion has been siphoned from labor and the lower 90% of the workforce to the New Nobility and their technocrat...

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The Dangerously Diminishing Returns on Monetary and Fiscal Stimulus

Allow me to translate the risible claims of Jay Powell and Janet Yellen that their stimulus policies haven't boosted wealth inequality to the moon: "Let them eat cake."

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Is 2021 an Echo of 1641?

If you don't discern any of these dynamics in the present, what are you choosing not to see? The reason why history rhymes is that humanity is still using Wetware 1.0 and so humans respond to scarcity, abundance and conflicts over them in the same manner.

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2021: If It Wasn’t For Bad Luck, We Wouldn’t Have No Luck At All

If we have indeed begun a sustained "reversal of fortune", it might be prudent to consider the possibility we're only in the first inning of a sustained run of back luck.

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The Tyranny Nobody Talks About

All the tricks to hide our unaffordable cost structure have reached marginal returns. Reality is about to intrude. There is much talk of tyranny in the political realm, but little is said about the tyrannies in the economic realm, a primary one being the tyranny of high costs: high costs crush the economy from within and enslave those attempting to start enterprises or keep their businesses afloat. Traditionally, costs are broken down into...

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Charles Hugh Smith The Fourth Estate’s Role in Thrusting America into Fascism

Charles Hugh Smith explains the “Fourth Estate” that refers to the press and news media, both in explicit capacity of advocacy and implicit ability to frame political issues.

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The Coming War on Wealth and the Wealthy

Here's looking at you, Federal Reserve--thanks for perfecting 'legalized looting' and neofeudalism in America.

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2020 Was a Snack, 2021 Is the Main Course

One of the dishes at the banquet of consequences that will surprise a great many revelers is the systemic failure of the Federal Reserve's one-size-fits-all "solution" to every spot of bother: print another trillion dollars and give it to rapacious financiers and corporations.

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2020 the “Worst Year Ever”–You’re Joking, Right?

So party on, because "the worst year ever" is ending and the rebound of financial markets, already the greatest in recorded history, will only become more fabulous.

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Big Media: Selling the Narrative and Crushing Dissent for Fun and Profit

The profit-maximizing Big Tech / Big Media Totalitarian regime hasn't just strangled free speech and civil liberties; it's also strangled democracy.

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When Social Capital Becomes More Valuable Than Financial Capital

This devaluation of financial wealth--and its transformation to a dangerous liability-- will reach extremes equal to the current extremes of wealth-income inequality.

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Can 20 Years of Deflation Be Compressed into Two Years? We’re About to Find Out

Extremes become more extreme right up until they reverse, a reversal no one believes possible here in the waning days of 2020.

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One Little Problem with the “All-Electric” Auto Fleet: What Do We Do with all the “Waste” Gasoline?

Regardless of what happens with vaccines and Covid-19, debt and energy--inextricably bound as debt funds consumption-- will destabilize the global economy in a self-reinforcing feedback.

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People Are Now Aware Of What Will Happen

Recently, people are more aware of what can happen. This awareness raises in economic conditions and political realities make people think. Every new choice is a new beginning for people.

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2021 is Already Optimized for Failure

One sure way to identify a system "optimized for failure" is if all the insiders are absolutely confident the system is "optimized for my success". I often discuss optimization here because it offers an insightful window into how systems become fragile and break down.

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A Dimly Lit Thanksgiving

Our overweening faith and confidence in our wealth and power make this a dimly lit Thanksgiving. A public expression of gratitude by victorious sports stars, lottery winners, etc. is now the convention in America: coaches, teammates, family and mentors (or agents) are recognized as an expression of the winners' humility and gratitude for everyone that contributed to the success.

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