PCR: Apathy Has Destroyed America

From Paul Craig Roberts

Most Americans have no idea how far gone their country is. We not only have the Biden regime announcing solidarity with BLM and flying the BLM flag at US embassies and consular missions, US military recruitment videos stressing recruitment of lesbian females, men dressing as women, and Americans having their genitals removed so they can become “no gender,” we have Democrat school systems teaching white people self-hate and infusing them with guilt and making them effective agents in reconstructing America as a racial caste system favoring blacks.



In the Spring 2021 issue of City Journal published by the Manhattan Institute, Christopher F. Rufo documents with their own words and deeds how the Oregon public school system has abandoned education for cult indoctrination.

Rufo focuses on the school systems in Tigard-Tualatin, Beaverton, and Portland where white Americans account for 98-99 percent of the population. Using their own documents and official statements, he shows that the purpose of the education bureaucrats is to destroy the confidence of white students and infuse them with “white guilt,” “white shame,” and self-loathing. A hate speech code is institutionalized, the purpose of which is “to pathologize any political opposition to the new order.” The cause of oppression is “whiteness” and white values of color-blindness, individualism, and meritocracy:

By perpetuating the narrative that America is fundamentally evil, steeping children in race theory, and lionizing the Portland rioters, they have consciously pushed students in the direction of race-based “revolution.”

In place of advancement by merit there is to be advancement based on “equity,” which means outcomes that favor blacks independently of merit. Color-blindness is denounced as a white trick to uphold a merit-based system. Individualism is to be replaced with group think described by Facebook’s Mark Zuckerberg as his ideal where everyone complies with group thought controlled by him and a handful of others of the “new order.” 

The New York Times’ 1619 Project has allied American media with the attack on the United States Constitution. According to the New York Times and the Oregon public school system, the Constitution is a racist document written for the sole purpose of institutionalizing black slavery in the foundation of the American state.

As Rufo notices, “We have reached the strange reality in which the state, through the organs of education, agitates for its own destruction. Educators have condemned the entire structure of the social order and celebrated those who would tear it down.”

It is clear that white liberals have succeeded in destroying the belief of many Americans in the rule of law and the Constitution by denouncing these historic achievements as “tools of white supremacy.”

Some red states have passed laws prohibiting the teaching of the demonization of white Americans in their states. What is likely to happen is that the presstitutes, the intellectuals, and the anti-white US Department of Justice will overthrow the state laws as a form of McCarthyism that prohibits freedom of expression.

In other words, freedom of expression is limited to denunciation of the founding values of the United States as white supremacist and white Americans as “systemic racist oppressors.”

Today the states are disunited between blue and red to a far greater extent than they were in 1860. There are two countries today occupying the same geographical location. One, the red states, believe in America and its founding documents. The other, the blue states, believe that America epitomizes white supremacy evil.

The message is clear. From the Democrats the message is that white Americans must submit to blacks whom they have wronged. From the Red States the response is that whites freed the blacks from the slavery that their black brothers sold them into, whites passed the 1964 Civil Rights Act and the 14th Amendment to the US Constitution that guarantee blacks equality before the law. The claim that white Americans denied these protections to blacks is a lie by traitors guilty of treason who intend to overthrow the United States of America.

The only way out of this is civil war. We will learn if the red states have enough confidence and will to defend the Constitutional rights of white Americans. Otherwise we will have, as was predicted some years ago, a “dispossessed majority.” White Americans could be dispossessed not only of their legal and Constitutional rights, but also of their lives

World Economic Stagnation is Causing Unrest and the Shift to Socialism, Marxism, Statism

Over this past weekend, while cryptos were crashing, no one noticed a political earthquake in Chile.  Chile, known for it's relative political and economic stability, especially compared to Argentina, had elections over the weekend and elected a Communist mayor of Santiago (where 1/3rd of the country lives) and elected a mostly Left-wing number of delegates to a Constitutional Convention.

This likely marks an end to center-right governance and a lurch to the political Left in the years ahead. This is not good news, but shows how a sluggish, stagnate economy can bring upheaval---just like it's doing here in the US and around the world. Stagnation leads to less non-elite worker pay over time and brings anxiety and frustration to the population as their are fewer employment options and inadequate pay.

This lurch to the Left was a surprise and the previous center-right government was completely routed. 

From Yahoo News:

Chile, Latin America's richest country but deeply unequal [Doug here: like America], faces an uncertain economic future after mostly left-leaning independents swept elections to dominate a body that will rewrite the country's free market-friendly constitution...

Much to pundits' surprise, voters in weekend elections flocked to independent candidates with no party affiliation but overwhelmingly leftist or socialist ideas for the new constitution-writing "convention". [Doug here:  Oh shit, this is NOT good]

Rightwing parties, in power in Chile and backed by the business sector, were left with less than a quarter of seats.

This means the right will have no veto on the body that needs a two-thirds majority to approve the draft constitution it will put to a national referendum next year, in which voting will be mandatory.

The Santiago stock exchange did not like the election result, opening nearly 10 percent lower on Monday while the peso retreated 2.0 percent against the US dollar.

This is one more example of how stagnating economic growth affects a country.  We've certainly seen it in the US and EU and everywhere else.  I discussed stagnation across the globe in my recent post; Why There Will Be No "Roaring 2020s" -- In Graphics in the bottom half of that post where I'm discussing the ever-rising cost of both missing GDP and missing Jobs. Even a slowing trend from the prior trend causes big problems and that's what we're seeing.

Here's a few graphs from that post showing the ongoing effects of economic stagnation (lower and lower growth trend):

And it's not going to get better:

Stagnation brings calls for Marxism, Socialism and ever more government (which only causes further stagnation). From Jeff Snider on Realclearmarkets.com

Essentially high growth equals political stability, the kind which further contributes to high growth.

On the flipside, any economy sure can find itself growing but not nearly enough; history providing ample examples. When its rate of change is and remains too low, the torches get lit and pitchforks find their way out of the backcountry barnyards; imperceptibly at first, then increasingly in more detectable even obvious fashion.

I discuss why we're in a long period of economic stagnation in many of my posts: in part because of unaffordable energy supplies, government interventionism and poor demographics across the globe --- which together causes a rising debt problem, which in turn adds to the stagnation problem. But let's be clear that we are suffering a death of 1000 cuts:

• Our Broken Social Contract?
  
• How the World Got to the Edge of the Cliff 
• 1971: The Beginning of the End--Massive Monetary Disorder
• The Economy is Nearing Collapse, Part 1: Exploding Government Desperation
• Economic Stagnation Is Causing Unrest And Leading to Collapse 
• Declining Global Money Supply Taking World Economy With It 
• The West's Economic and Cultural Suicide 
• Everything is Being Destroyed in One Generation: Our Culture, Our Country, Our Money and Capitalism Itself
• Extremes in Unsound Money and Finance Will (Eventually) Lead to Catastrophe   

When Blacks Are In Charge -- Crime, Corruption, Violence, Collapse

The article below reminds me that "There's none so blind as those who will not see."  

The article below is a warning about Blacks In Charge. But, sorry if I'm being unkind, the same story plays out with Latinos in charge. The result is the same. Why do you think 100's of Thousands of Latinos are swarming our southern border??  The answer is: 1) our Uniparty invited them and 2) Latin-America is in cultural and economic collapse. That collapse is lapping at our shores right now.

Also see my post just below:  Warning! Do Not Read! Just Another Week In Ignorant, Racist, Collapsing America and my 2012 post The Corrupt World of African-American Politicians. Also check out my Essential Gulfcoastcommentary Index for numerous posts about our country's path to ruin.

A Letter to White Americans from A South African Woman from American Renaissance:

Whites arrived in South Africa in 1652, not long after the Mayflower arrival in America. They had as much right to be there as any other new-world settlers. They built a wonderful country against daunting odds. The British were their first real antagonists. During the Anglo-Boer War, Britain built the world’s first concentration camps; more than 26,000 Afrikaans women and children died.

We survived, despite Britain’s greed for our gold, diamonds, and minerals. For 350 years, we toiled to sow the seeds of Western Civilization. Millions of Africans moved to South Africa from other parts of the continent seeking work and security from wars and conflict.

South Africa’s whites are the only substantial white population left in sub-Saharan Africa. There are only about four million of us in a country with a population of some 60 million. No one knows the real population of our country because millions of Africans have streamed across our borders since the African National Congress (ANC) came to power in 1994. Since then, there has been no border control.

Our country was handed over by the previous white government to a revolutionary gang. This happened because of enormous pressure from the West, especially from the United States. The ANC’s first president was Nelson Mandela, and the ANC’s path to power has been well documented. Whatever the world press has said about the “struggle for freedom,” the party took power through terror and the barrel of a gun. Nelson Mandela refused to renounce violence as a condition of his release, and violence continued well after he took power in 1994. It is his party, the ANC, that is destroying what was once a thriving first-world country. It was one of only six in the world that exported food; many neighboring African countries depended on us for jobs, security, and food.

Many of us knew that the dream of a non-racial democracy would end up as a black dictatorship. Many of us fought desperately to stop the takeover, but the West had a bizarre need to see black rule in this part of the world, whatever the consequences. Being right doesn’t mean you win. Giving “democracy” a chance here was a death sentence for our country. Whites voted for “negotiations,” bamboozled by the promise of power-sharing, world approbation, and acceptance into the “community of nations.” Nelson Mandela was never the icon portrayed by the world and especially by American liberals. South Africa today is his legacy.

What we see now in America follows the same pattern. The system is evil; it discriminates. There is no justice. It’s always someone else’s fault. Black Lives Matter has led to increased demands, and once these demands are met, there are always more. But you still have the wherewithal to resist.

In South Africa, conservatives were called far right, fascists, divisive, haters, intolerant. By nature, conservatives are not wild men in the streets, but you must act. The “progressive” philosophy sounds good, but it takes you into quicksand. We know. We saw it here. We lost. Don’t let your country slip through your fingers.

What follows is adopted from an article published by TLU SA — the Transvaal Agricultural Union South Africa.  If Interested, click Read more just below:

Warning! Do Not Read! Just Another Week In Ignorant, Racist, Collapsing America

Warning: Do Not Read this post due to politically incorrect, racist and foul language. Not for the faint of heart!  Warning!

If you must, click more below:

PCR: The Left Is Demonizing White Persons More Than Hitler's Jew Persecution

Demonization of White Americans Now California State Official Policy, Paul Craig Roberts

California mandates that all public and charter high schools teach “critical race theory” which defines all white people as racists and people of color as their victims.  The purpose is to deracinate white students, infuse them with guilt, and base advancement on victim status in place of merit. As whites comprise merely 30% of California’s population, they are an easy mark for second class citizenship. See this Epoch Times article.

California public response was greatly opposed to the critical race theory mandate, but the far left ideologues running the educational system ignored the public, proving once again that government policy is divorced from the people’s wishes.

In many states, especially blue ones, critical race theory, if not a state mandate, is mandated by many local school systems. Whites are everywhere being turned against themselves.

White Americans are too nonchalant to know what is happening to them.  Anti-white ideologues have control of school systems, universities, Hollywood, social media, print and TV media, corporations, book publishing, and the US military and are using these powerful institutions to demonize white Americans even more completely than Jews were demonized in the Third Reich.  White Americans are being moved aside out of power positions, out of the 1st and 14th Amendmens, and out of self- confidence.  They have sat sucking their thumbs while a handful of far left ideologues stole their country.

PCR: Democrats Desperately Blocking AZ Election Audit Shows Conclusively That They Stole Election

Paul Craig Roberts If There Was No Election Fraud, Then Why Are Democrats Desperate to Block Maricopa County, Arizona Audit?

Arizona Democrats have refused to comply with court orders and have declared an audit “racist.”

The criminal gang that masquerades as the US Dept of Justice has declared the election audit “voter intimidtion” as the DOJ attempts to intimidate Republicans to cease the audit.

Obviously, there was massive electoral fraud. If not, why the extraordinary effort to block the audit? If there was no election fraud, the Democrats would welcome an audit to prove their case.

What will Republicans, assuming the DOJ doesn’t scare them off, do with the evidence of election theft? Chances are high they will cover it up. Why? Here are several reasons:

Republicans are largely from the business and corporate community. They don’t know how to fight. They learned that you get to the top by not making waves.

Republicans are patriotic and are concerned to protect America’s reputation. Many will argue that to reveal the fraud will undermine America’s reputation and democracy and that the Chinese and Russians will use the fraud for propaganda against America. Suppressing the evidence of fraud is necessary to protect America’s influence.

Revealing the fraud will undermine the Biden administration and cause a political crisis. It will be clear that America has suffered a coup. To overturn the coup would split the country. The Biden military might intervene in Biden’s behalf, thus legitimizing the coup and ending the authority of law and the Constitution.

Many Republicans will argue that it is best to make a deal with the Democrats. Show them the evidence and tell them that it won’t be revealed if the Democrats will stop blocking electoral reforms such as voter ID and removing dead and out of state people from the voting rolls. Republicans will argue that this is the best outcome. It will preserve America’s reputation and prevent another stolen election.

Establishment Republicans will like this outcome because they are opposed to Trump and oppose anything that would vindicate him.

No doubt the evidence of a stolen election would be leaked, but the presstitutes would never report it and no one would ever know.

In view of the fact that very little is likely to result from conclusive evidence of election theft, the fierce opposition of Democrats and presstitutes to the audit is conclusive proof in itself that the election was stolen.

From the Desk of Donald Trump he said on May 15th:

The entire Database of Maricopa County in Arizona has been DELETED! This is illegal and the Arizona State Senate, who is leading the Forensic Audit, is up in arms. Additionally, seals were broken on the boxes that hold the votes, ballots are missing, and worse. Mark Brnovich, the Attorney General of Arizona, will now be forced to look into this unbelievable Election crime. Many Radical Left Democrats and weak Republicans are very worried about the fact that this has been exposed. The DELETION of an entire Database and critical Election files of Maricopa County is unprecedented. Many other States to follow. The Mainstream Media and Radical Left Democrats want to stay as far away as possible from the Presidential Election Fraud, which should be one of the biggest stories of our time. Fox News is afraid to cover it—there is rarely a mention. Likewise, Newsmax has been virtually silent on this subject because they are intimidated by threats of lawsuits. One America News (OAN), one of the fastest growing networks on television, and the “hottest”, is doing a magnificent job of exposing the massive fraud that took place. The story is only getting bigger and at some point it will be impossible for the weak and/or corrupt media not to cover. Thank you to OAN and other brave American Patriots. It is all happening quickly!

Right on Mr. President.

William Lind: The Chauvin Show Trial and the State’s Crisis of Legitimacy

From William Lind at TraditionalRight

On Tuesday, April 20th, a Minneapolis jury found police officer Derek Chauvin guilty of three counts, including second-degree murder, in the death of George Floyd. The “trial” had the usual characteristics of a political show trial, including an automatic verdict of guilty, even though we still do not know whether Floyd died from officer Chauvin’s actions or because of Floyd’s combination of heart disease, breathing problems, and ingestion of both fentanyl and meth. In show trials, the facts don’t matter anyway.

The markers of a show trail include:

• The President of the United States, Joe Biden, said publicly before the verdict that he was praying for “the right verdict.” Could anyone doubt what verdict he meant?
• One defense witness had his former home vandalized, presumably by people who thought he still lived there. Witness intimidation, anyone? Hello?
• The Left openly threatened riots unless the jury caved and voted Chauvin guilty. In a column in the Saturday-Sunday, April 24-25 Wall Street Journal, Joseph Perkins quoted Congresswoman Maxine Waters, who is black, saying in Minneapolis the weekend before the verdict, “I hope we get a verdict that says guilty, guilty, guilty. And if we don’t. . . we’ve got to stay on the street. We have to get more active, we’ve got to get more confrontational.” Perkins quoted attorney Alan Dershowitz saying Waters’ words were “an attempt to intimidate the jury,” which they certainly were in a city that had already suffered major riots over Floyd’s death.
• In an editorial on April 21, the WSJ noted that, “Even after the verdict, commentators who applauded the jury gave last year’s riots in American cities the credit for inspiring it. Not the facts. Not the law.” If that doesn’t define a political show trial, Lavrentii Beria took in orphans’ washing.
• Blatant show trials are a sign of a regime’s lack of legitimacy, not of its strength. They show a state is afraid of facts. Some of the facts those now running the executive and legislative branches of government fear are:
• Cops react to blacks, especially black men and most of all young black males, the way they do because they have to. Floyd had already done time for violent crimes. The black violent crime rate, almost all of which is committed by young black males, is twelve times the white rate. If cops cannot use force against blacks, they cannot protect other citizens (including innocent blacks, who make up most of the victims of black crime) or themselves.
• The Chauvin show trial is part of a broad assault on policing and order by the cultural Marxists. Cultural Marxism’s goals are purely destructive: they want to bring everything down (“negative dialects,” to use their own term). Since the state arose to keep order, there is no more effective way to destroy a state than to create massive disorder the state cannot stem. The cultural Marxists believe a stateless paradise of all play and no work will arise on the ruins, as per Marcuse’s book Eros and Civilization. What will actually happen is going to be less enjoyable.
• Thanks to the mindless encouragement to “act out” we see “leaders” white and black give to blacks, the 13% of our population who are black have become 90% of our problems. That is a perilous situation for the 13%, and it is not likely to end well. What real leaders need to tell Americans, blacks, whites, and whatever, is that freedom is not some impossible “right” to do whatever you feel like at the moment, i.e., embrace a culture of immediate gratification. Freedom is the right to substitute self-discipline for imposed discipline. Those who cannot do the former are not fit for freedom and must live under the latter. Jim Crow may soon find himself a welcome bird.

Most Americans long ago wrote off both the White House and Congress in terms of legitimacy. The one remaining element of our tripartite system that has retained legitimacy is the courts. [Doug here: I have to disagree here William, the US Court system including the Supreme Court are often severely compromised and barely functioning. Everything in this country is not functioning or corrupted or incompetent. The Supreme Court has become a joke with their abdication of duties in the recent election].  With demands for political show trials rising and court-packing schemes afoot in Washington, soon that element of our system may also shed its legitimacy. At that point, all that can keep a state afloat is terror. Terror will be hard to pull off in America, where states retain substantial leverage against Washington, the population is well armed, and cops are usually conservatives. The war on cops is not moving us toward “racial justice.” It is moving us towards anarchy, followed quickly by an authoritarian state.

Illegal Immigration Cost to US Taxpayers: $133.7 BILLION Per Year and Rising

Each year, hundreds of thousands of illegal aliens deliberately violate our nation’s laws by unlawfully crossing U.S. borders.  We now have 14.5 Million Illegals in the US (minimum) and their cost to US Taxpayers is now $133.7 BILLION. This figure takes into account Federal, State and Local costs minus all of the taxes paid by these people. Much more on this below.   

 

Those 14.5 million illegals (overwhelmingly Hispanic) cost our country $133.7 Billion per year (from FAIRUS).  That works out to be $9,241 NET COST per year per illegal.

These hordes of illegals come with minimal education, little English and little work experience outside of farming/gardening, waiting tables, construction, cleaning and domestic work. Almost 60% of the citizens of Mexico and the Northern Triangle countries have less than a high school education compared to just 10% of U.S. citizens. 

 

The median IQ of Central Americans are the lowest in the Western Hemisphere at 80 to 85 for El Salvador, Honduras, Guatamala and Mexico. Correspondingly, their countries are often dangerous, crime-ridden, poor and poorly developed. 

 

Low median IQ is reflected in their wages: Statutory miniumum wages are very low:  $7 PER DAY in Mexico, $10 to $13 PER DAY for the other countries in Central America. They are all very low. (Data from Minimum Wage in Central America.) From my studies in International Economics at the Master's level, I remember well that wages reflect value-added or productivity. Value added and productivity of Central Americans is extremely low on average. Our country should only be accepting the exceptional ones, ie., ones with college degrees and English language skills.

 

Democrats want to US companies to pay these people a minimum wage of $15 PER HOUR when their labor is worth 15 times less or about $1 PER HOUR! (In their home economies).  

 

It's a massive vote buying scam.

In sum, on average these people have little to offer the US. America should be deliberately targeting the BEST immigrants in the world to power our country forward in the 21st century; NOT the WORST of the WORST.  Of course, the Democrats don't care. They literally WANT the WORST OF THE WORST.  And they don't care about the cost to local, state or national communities.  Republicans don't give a shit either!  Yes, there are outstanding immigrants from every country in the world, but the data shows that we must be very selective: NOT MASS, UNCONTROLLED, NON-SELECTIVE INVASION!!

Worse, it's a case where the Biden Administration is The Third Obama Administration; In Bed With the Cartels to accept delivery of illegals!  It's criminals all around. What a fucked-up bunch of Commies we have now.

 

The following graphs are from the Navarro Immigration report: 

 

 

Navarro concludes: 

“while the Democrat Party ostensibly represents the working poor and blue-collar laborers of America, this political party now advocates unrelentingly for open borders that will afflict maximum damage to these constituencies.” It is often the working poor who lose their jobs when illegal immigration increases. If the Democrat party continues to push for open borders and “dismantles the Secure Order policies” Trump initiated, Navarro warns that “the very worst is yet to come [and] we must brace for the fallout.”

From FAIRUS.COM, the Cost of Illegal Immigration to US Taxpayers (2017) here are some useful graphics showing the costs and benefits of Illegal immigrants in this country:

 

All Costs of Illegals 

 

 

 

All Taxes Paid by Illegals

Net Cost to US Taxpayer (from 2017)  The Net Cost in 2019 is $134 Billion

Fast Facts from Fairus.com (data from 2019):

• Illegal migration costs the American taxpayer approximately $134 billion annually, and could exceed $200 billion by 2025.
• There are at least approximately 14.5 million illegal aliens in the United States as of 2019, a jump of nearly 2 million people since 2017.
• There are 564 lawless “sanctuary” jurisdictions throughout the United States as of May 2018.
• In Fiscal Year 2019, the Border Patrol apprehended a near-record 860,000 illegal aliens nationwide, of which 852,000 (99 percent) were caught while attempting to cross the Southwestern border. 
• Illegal aliens are typically at least three times more likely to be incarcerated than citizens and legal immigrants.

Illegal Immigration and its Effects on the Lives of Americans

Each year, hundreds of thousands of aliens deliberately violate our nation’s laws by unlawfully crossing U.S. borders. This kind of illegal entry is a misdemeanor. When repeated after deportation, it becomes a felony.

Two types of illegal aliens exist in the U.S. today. Those who illegally enter the country are referred to as EWIs. Those who enter legally and then stay illegally are referred to as over-stayers.

Illegal immigration is not a victimless crime. The consequences of illegal immigration are far-reaching.

• Illegal Immigration causes an enormous drain on public funds
• The needs of endless numbers of poor, unskilled illegal entrants undermine the quality of education, healthcare and other services for Americans
• Job-desperate illegal immigrants unfairly depress the wages and working conditions offered to American workers, hitting hardest at minority workers and those without high school degrees.
• Illegal immigration contributes to population growth, overwhelming communities by crowding classrooms, consuming already limited affordable housing, and increasing the strain on precious natural resources like water, energy, and forestland.
• Illegal Immigration undermines national security, allowing potential terrorists to hide in the same shadows

Previous administration policies and hold outs in the current administration are constraining authorities from detaining and deporting most illegal aliens except for those with criminal convictions or threats to the national security.

CLICK HERE:  SERIOUS QUESTIONS THE MEDIA SHOULD (BUT WON'T) ASK ABOUT BIDEN'S BORDER CRISIS

Why There Will Be No "Roaring 2020s" -- In Graphics

I've been hearing from a number of quarters that we're in the "Roaring 2020s." I've seen many headlines to that effect. Yes, it feels that way now because government spending (debt) is positively EXPLODING currently. I have learned not to underestimate the power of the Federal Collosus to "kick the can" with even more inflationism and unsound money.

Just this morning, thanks to outrageous incompetence at every level of government, inflation hit 10% annual rate last month. And bond interest rates are 0 to 1.6% per annum??  It's the biggest fuck-up in economic history, right on par with Zimbabwe. Thanks to troglodytes in our Gov't and the Federal Reserve; some of the biggest dumbasses in the world, America IS a 3rd world country and we're broke as hell. Just our unfunded liabilities are some $165 TRILLION---don't kid yourself those liabilities are debt! Add $29 T for the accumulated deficit and we're talking 10X GDP or 60X US Gov't tax revenue (income)!!

Additionally, the Federal Reserve continues it's emergency program of $120 B of monthly reserve money creation -- which is being used by banks to buy some of that government debt in order to keep rates from rising. And they probably can't stop any of this without everything falling apart.

But the surprising thing is that the data shows that the expansion of money (monetary inflation) or government spending does not create real economic growth. This is the fatal flaw of communists and socialists: they eventually fail.  In my opinion, it is extremely unlikely that our market, economic and societal future is anything but dreadful for much of the 2020s.  I'll explain why.

Market History

The historical comparison to the 1920s vs the present and what it says for the 2020s. First the markets: 

Fig 1: The 1920s Stock Boom Started with a PE Ratio of ~5x . Although the current PE is 44.1, it's elevated since we've just emerged from a recession. See the next figure.

Fig 2: The Current Market (trailing) PE is 44.1, but this is high since we're just exiting a recession. It'll come down to maybe 25x to 28x (just guesstimating) or historically very pricey.

Fig 3: The Period #1 is from 1910 to 1921 which includes WWI and the Spanish Flu. From 1920 to 1921, there was a severe depression that drove down stocks by 49% for that period (11 years). The ending Price to Earnings(PE) ratio for stocks in 1921 was 5x earnings or very low.  This set-up the stage for the roaring 1920s, ie., from VERY low valuations.  We don't have anything like that now!

Fig 4: Period 1, 1910 to 1921 saw a 49% loss of Stock Market prices with an end-of-period market PE at 8.5x (or 5x from Fig 1), The roaring 1920s saw huge returns where the Market PE went from 5x and ended at 19.7 with huge annualized GDP and profit growth. The next period was NOT good for markets (The Great Depression),

Market Indications and Summary:  From market history, secular bull markets start with low, depressed valuations, secular bear markets start with stretched and high valuations. According to Fig.4, our current valuations show a PE of 28 or so are stretched and high. Forward returns based on 100 years of market history say we're going to have a "bad period"soon. The rest of the story is in our declining economic conditions. 

Economic History - Everything Changed in 1971

 In my post 1971--The Beginning of the End. Massive Monetary Disorder I said the following:  

In 1971, Nixon ended this monetary arrangement (Bretton Woods) which ended gold-backed money. It was done at that time to enable the government to run deficits to fund the Viet Nam war without raising taxes to pay for it. As an immediate result, the US dollar plunged in value and our national debt and inflation began to skyrocket. A falling dollar soon caused the oil exporting countries to sharply raise oil prices in 1974 igniting a budgetary and inflationary spiral.

Then came decades of huge, unsustainable global imbalances in trade and debt, inflation, falling living standards, inequality, monetary disorder, instability, the rise of China, the Petro-dollar, endless wars, the massive military-industrial complex, a leviathan surveillance state, mega corporate monopolies, massive US government growth, government malfeasance and corruption, national de-industrialization, wealth inequality, the Eurodollar rise and fall, widespread US intervention and manipulation in nearly every global nation -- continuing to the present day. All fueled by easy (unsound) money and out-of-control spending.

All of the accumulated damage is discussed additionally in my pivotal post: Extremes in Unsound Money and Finance Will (Eventually) Lead to Catastrophe I discuss in the first 5 or 6 paragraphs of that post how the trends since 1971 will eventually lead to monetary, social and economic disaster/chaos. I suggest that we are already facing that chaos NOW and worsening into our future, ie., the next 2 to 8 years. I fully expect complete economic/social upheaval and world war with major inflation and market crashes of up to 80% declines in the decade ahead.

Now for the evidence for a very "bad period" lies ahead for the economy and markets ahead:

Fig 5: Economic Growth has been in a downtrend for many decades. Recent decades, after 1971 have seen inflation and declining wages for the bottom 90% of the population. Note that expected economic growth rate for the 2020s is estimated at only 1.5% or lower. This rate would be MUCH, MUCH lower than the 1920s

Fig 6:  Notice how 1971 (end of sound money) marked the beginning of huge government spending and debt. This is causing annual gains in GDP to decline.

Fig 7: The bottom 90% cannot keep up: they are increasingly going into debt. This trend cannot persist forever Fig 7: The bottom 90% cannot keep up: they are increasingly going into debt. This trend cannot persist forever

 

Fig 8: By definition GDP includes government spending, which is increasingly funded by debt. So, decades of recent "growth" is somewhat of an illusion. It's not organic. Debt does indeed do wonders, but there are limits for individuals AND eventually governments. That's why politicians had to get rid of sound money 50 years ago.  Debt just borrows growth from the future. But the future eventually arrives.

The Real GDP Stories

All of the following graphics from the US, China, EU and Mexico show how the entire world economy is slowing and the lost wages and lost GDP continues to add up despite all the "money" (debt) created and thrown around:

Fig 9:  US Real GDP Versus Government Deficits and Prior Baseline

Fig 10:  US GDP Versus Federal Reserve Balance Sheet and Prior Baseline --Stagnation

Fig 11:  US Real GDP vs Two Different Prior Baselines -- Stagnation

Fig 12:  Europe Real GDP Versus Prior Baseline- Stagnation!! Jobs are stagnate too.

 

Fig 12:  China Real GDP.  The entire world is stagnating due to monetary disorder, limits of resources and their costs

 

Fig 13:  Mexico Real GDP Versus Prior Baselines..Stagnation

All the Missing Millions of Jobs in the US:

Fig 14:  The Dramatic Labor Story in the US: the Labor Participation Rate Shows 21.6 MILLION  JOBS that are missing. Expect this kind of step-down after each crisis (see next)

Fig 15: The Labor Story is likely to get worse and worse--just like a never-ending Recession (Depression). The participation rate will keep worsening. Jobs will keep going "missing"

Fig 16: A reversion to the mean of Corporate Profits to Labor is very, very overdue. Labor's share will increase while corporate profits sink. Notice that corporate profit DID revert to means in 2001, 2009 and will again.

Fig 17: Wealth Inequality is Ominously Back to 1929 Levels. In the next crash, it will be the wealthy that lose the lion's share. They own 88% of the stock market.

 Remember this commentary from Doug Nolan at Credit Bubble Bulletin from February 26, 2021. It's applicable in our discussion and observing the current state of our country and markets:

Inequality, speculative Bubbles and manias, resource misallocation, wealth redistribution and destruction, and deep economic structural impairment are all consequences of years of unsound money. And it’s back to this fundamental flaw I’ve been railing against for too long: it is impossible to resolve Monetary Disorder and the fallout from unsound money through additional monetary inflation. It’s destined for catastrophic failure, and it was another week when inklings of a failing system were observable to those with discerning eyes.

It may be archaic and relegated to the dustbin of history. But one cannot overstate the peril associated with entrenched unsound money. An insidious corruption of price mechanisms over time jeopardizes the very foundation of Capitalism. And as Capitalism decays Democracy flounders. Society frays, while insecurity, animosity, anxiety, and the forces of distrust are left to fill the void. And as we continue to witness, the consequences of unsound money incite only more perilous inflationism.

 Other Relevant Gulfcoastcommentary Blogposts:

• The Economy is Nearing Collapse, Part 1: Exploding Government Desperation
• Tverberg: The Economy is Nearing Collapse, Part 2
• Tverberg: "Headed for a Collapsing Debt Bubble"
• Extreme Bubble Phase: The Fed Trapped in Repo, then QE. Either Inflate Bubbles or World Economy Blows Up
• 1971: The Beginning of the End--Massive Monetary Disorder
• How the World Got to the Edge of the Cliff
• European Banks and the Euro Will Destroy the World
• Our Dystopian Future: Recession Without End
• Rising Potential for a Financial System Collapse
• The US Economy on Life Support -- Masking Economic "Depression" 
• Rising Risk of Financial and Economic Chaos ' 
• Rising Risk of Financial & Economic Chaos, Part 2
• Repost from Jan 2018: Why Our Economy Is In Depression And Will Get Only Worse
• Extremes in Unsound Money and Finance Will (Eventually) Lead to Catastrophe
• Economic Stagnation Is Causing Unrest And Leading to Collapse
• America's March to 3rd World Status, Then Collapse
• Declining Global Money Supply Taking World Economy With It
• Big Picture View of the Brewing World Financial Crack-up
• More Debt Won't Work; Charts to Prove It

Open Letter from 317 Senior US Retired Generals and Admirals: Our Nation is in Deep Peril

See my recent post "Sound Familiar? French People See 'Diversity Disaster' as Attack on French Identity; Risk of Civil War," where I report that about 1000 military service members and 20 retired generals in France who:

...warned President Emmanuel Macron of “several deadly dangers” threatening France, including “Islamism and the hordes of the banlieue,” a reference to the fractured suburbs around major cities with high crime and immigrant populations.

The signatories also blame the “anti-racism” movement for seeking to create a “racial war” by attacking symbols of French cultural cohesion and identity, including statues.

The letter blames “fanatic partisans” for seeking to create divisions within communities that have created a vacuum for Islamists to assert their control.

“The hour is grave, France is in peril,”

Now here is the letter from US Generals and Admirals to warn the American people and specifically the Biden administration:

"Our Nation is in deep peril. We are in a fight for our survival as a Constitutional Republic like no othertime since our founding in 1776. The conflict is between supporters of Socialism and Marxism vs. supporters of Constitutional freedom and liberty.

During the 2020 election an “Open Letter from Senior Military Leaders” was signed by 317 retired Generals and Admirals and, it said the 2020 election could be the most important election since our country was founded. “With the Democrat Party welcoming Socialists and Marxists, our historic way of life is at stake.” Unfortunately, that statement’s truth was quickly revealed, beginning with the election process itself.

Without fair and honest elections that accurately reflect the “will of the people” our Constitutional Republic is lost. Election integrity demands insuring there is one legal vote cast and counted per citizen. Legal votes are identified by State Legislature’s approved controls using government IDs, verified signatures, etc. Today, many are calling such commonsense controls “racist” in an attempt to avoid having fair and honest elections. Using racial terms to suppress proof of eligibility is itself a tyrannical intimidation tactic. Additionally, the “Rule of Law” must be enforced in our election processes to ensure integrity. The FBI and Supreme Court must act swiftly when election irregularities are surfaced and not ignore them as was done in 2020. Finally, H.R.1 & S.1, (if passed), would destroy election fairness and allow Democrats to forever remain in power violating our Constitution andending our Representative Republic.

Aside from the election, the Current Administration has launched a full-blown assault on our Constitutional rights in a dictatorial manner, bypassing the Congress, with more than 50 Executive Orders quickly signed, many reversing the previous Administration’s effective policies and regulations. Moreover, population control actions such as excessive lockdowns, school and business closures, and most alarming, censorship of written and verbal expression are all direct assaults on our fundamental Rights. We must support and hold accountable politicians who will act to counter Socialism, Marxism and Progressivism, support our Constitutional Republic, and insist on fiscally responsible governing while focusing on all Americans, especially the middle class, not special interest or extremist groupswhich are used to divide us into warring factions.

Additional National Security Issues and Actions:

• Open borders jeopardize national security by increasing human trafficking, drug cartels, terroristsentry, health/CV19 dangers, and humanitarian crises. Illegals are flooding our Country bringing high economic costs, crime, lowering wages, and illegal voting in some states. We must reestablish border controls and continue building the wall while supporting our dedicated border control personnel. Sovereign nations must have controlled borders.
• China is the greatest external threat to America. Establishing cooperative relations with the Chinese Communist Party emboldens them to continue progress toward world domination, militarily, economically, politically and technologically. We must impose more sanctions and restrictions to impede their world domination goal and protect America’s interests.
• The free flow of information is critical to the security of our Republic, as illustrated by freedom of speech and the press being in the 1st Amendment of our Constitution. Censoring speech and expression, distorting speech, spreading disinformation by government officials, private entities, and the media is a method to suppress the free flow of information, a tyrannical technique used in closed societies. We must counter this on all fronts beginning with removing Section 230 protection from big tech.
• Re-engaging in the flawed Iran Nuclear Deal would result in Iran acquiring nuclear weapons along with the means to deliver them, thereby upsetting Mideast peace initiatives and aiding a terrorist nation whose slogans and goals include “death to America” and “death to Israel” . We must resist then ew China/Iran agreement and not support the Iran Nuclear Deal. In addition, continue with theMideast peace initiatives, the “Abraham Accords,” and support for Israel.
• Stopping the Keystone Pipeline eliminates our recently established energy independence and causes us to be energy dependent on nations not friendly to us, while eliminating valuable US jobs. We must open the Keystone Pipeline and regain our energy independence for national security and economic reasons.
• Using the U.S. military as political pawns with thousands of troops deployed around the U.S. Capitol Building, patrolling fences guarding against a non-existent threat, along with forcing Politically Correct policies like the divisive critical race theory into the military at the expense of the War Fighting Mission, seriously degrades readiness to fight and win our Nation’s wars, creating a major national security issue. We must support our Military and Vets; focus on war fighting, eliminate the corrosive infusion of Political Correctness into our military which damages morale and war fighting cohesion.
• The “Rule of Law” is fundamental to our Republic and security. Anarchy as seen in certain cities cannot be tolerated. We must support our law enforcement personnel and insist that DAs, our courts, and the DOJ enforce the law equally, fairly, and consistently toward all.
• The mental and physical condition of the Commander in Chief cannot be ignored. He must be able to quickly make accurate national security decisions involving life and limb anywhere, day or night. Recent Democrat leadership’s inquiries about nuclear code procedures sends a dangerous national security signal to nuclear armed adversaries, raising the question about who is in charge. We must always have an unquestionable chain of command.

Under a Democrat Congress and the Current Administration, our Country has taken a hard left turn toward Socialism and a Marxist form of tyrannical government which must be countered now by electing congressional and presidential candidates who will always act to defend our Constitutional Republic. 

The survival of our Nation and its cherished freedoms, liberty, and historic values are at stake.We urge all citizens to get involved now at the local, state and/or national level to elect politicalrepresentatives who will act to Save America, our Constitutional Republic, and hold those currently in office accountable. The “will of the people” must be heard and followed."