Why This Market Needs to Crash (And Likely Will)

Editor's Note: The following is a guest post by Chris Martenson with PeakProsperity.com.

Like an old vinyl record with a well-worn groove, the needle skipping merrily back to the same track over and over again, we repeat: Today's markets are dangerously overpriced.

Being market fundamentalists who don’t believe it’s possible to simply print prosperity out of thin air, we’ve been deeply skeptical of the financial markets ever since the central banks began their highly interventionist policies. Since 2009, they have unleashed over $12 Trillion in new money into the world, concentrating wealth into the hands of an elite few, while blowing asset price bubbles everywhere in the process (see our recent report The Mother Of All Financial Bubbles).

Our consistent view is that price bubbles always burst. Which is why we predict the world’s financial markets will implode spectacularly from today's heights -- destroying jobs, dreams, hopes, economies and political careers alike.

When this happens, it will frighten the central bankers enough (or merely embarrass them enough, being the egotists that they are) that they will respond with even more aggressive money printing -- and that will then cause the entire money system to blow up.  Ka-Poom!  First inwards in a compressed ball of deflation, then exploding outwards in a final hyperinflationary fireball (see our recent report When This All Blows Up...).

It really cannot end any other way.  Money is not wealth; it is merely a claim on wealth.  Debt is a claim on future money.  The only way to have faith in our current monetary policies is if one believes that we can always grow our debts at roughly twice the rate of GDP -- forever.   That is, compound the claims at twice the rate of income year after year from here on out.

This would be like having your credit card balance rolled over every month as the balance grows at 10% each year, while your income advances at only 5% per year.  Eventually you simply have a math problem: your income becomes swamped by your debt service payment.  First you are insolvent, then bankruptcy eventually follows.

At the national level, the US is already insolvent, meaning liabilities exceed assets.  The US has been spending far above our means for decades and decades, amassing a tremendous amount of public and private debt (as well as entitlement promises) along the way. And, yes, even nations can go bankrupt.

But bankruptcy is a legal process, and it’s not possible for an entire economy to enter a legal process, so what do we mean when by talking of a looming bankruptcy? Simply put, all those the claims represented by all the debt and excess printed currency have to be destroyed, or reduced, to bring things back into balance. 

The Austrian economist Ludwig von Mises said it best: “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

Sadly, there’s been absolutely no demonstrated willingness on behalf of our national leadership for  “voluntary abandonment of further credit expansion”. In fact, it’s been the exact opposite.  With the Federal Reserve leading the way, the ‘plan’ has been the voluntary, increasingly desperate, attempt to expand credit even more aggressively than before.

To understand just how dangerous this has become, we need look no further than this chart:

Our current debts and other national liabilities now total more than 1,000%(!) of the nation's annual income, a.k.a GDP.

US economic growth began slowing due to its accelerating ‘too much debt’ problem back around 2000. Instead of allowing natural market forces to clear out the excessive debts, the Federal Reserve chose to go into overdrive to ‘remedy’ the problem. It's remedy? Drive interest rates to 0% to reduce the service burden of those debts, and print trillions of fresh dollars that in turn can fund new borrowing.

Of course, no true ‘solution’ for having too much debt involves piling up even more of it.  That's like treating cancer with more cancer.  Or alcoholism with more alcohol. But such has been the twisted logic of our central bankers.

The only path that history has shown works involves fiscal austerity and reducing debt.  Or, as von Mises put it, "a voluntary abandonment of the credit expansion".  But, that requires real political courage and a willingness from society to endure actual ‘pain’ in the form of living below its means to make up for the prior periods of living too lavishly. Don't expect that to happen anytime soon? Nether do we... 

Returning to the chart above, it’s sufficient to know that no country, ever, in all of history, has ever dug out from such a mountain of excess claims.  Never.  Not once.

The only possible way we're avoiding crisis is if the economy suddenly returns to extremely rapid economic growth for an extremely long time.  And that’s if AND ONLY IF during such a period of rapid growth, we use that windfall to pay down the debts and other associated IOU’s -- rather than as an excuse to once again look the other way because, hey, everything's awesome now!

At any rate, what we can divine from all of this is that there’s been zero effort towards ‘voluntary abandonment’ of the credit cycle. And there's been every effort made towards extending it farther. We're simply climbing ever higher up an extension ladder from which we will someday fall.  We passed the ‘moderately painful’ height a long time ago; now we're up at the ‘quite possibly lethal’ altitude.

But make no mistake, pushing us further up this credit ladder is exactly what 0% interest rates were meant to do.  The openly-stated intent of the central banks in treading into the never-before-tried ZIRP and NIRP waters was to spark more borrowing (and spending). 

The fact that savers and pension plans have been utterly decimated by these low (even negative rates in some parts of the world) is not even a passing concern to the Federal Reserve.  Their only goal has been to get credit expanding again as fast as possible.  Ditto for the European Central Bank, The Bank of England, and the Bank of Japan, as well as The People’s Bank of China.

All of them have the same plan: Expand!

But this ‘plan’ does not pencil out.  It fails basic math both here in the short term, as evidenced by more than a decade of sub-par GDP growth, but especially later over the long term. Why?  Because there’s no such thing as perpetual exponential expansion of anything. Even the universe itself is expected to one day stop expanding and eventually implode in a "big crunch".

Regrettably, though, that’s the ‘plan’ of every major central bank around the world right now.

Because it's mathematically guaranteed to fail, our only job as private individuals is to understand the situation accurately and to then take actions that are in alignment with the reality of living within such a broken system.  If we can’t stop the lunatics, at least we can foresee the consequences of their actions and begin to unhitch ourselves as best as possible from their nutty trajectory.

Just how reality-detached are these bankers?

As Adam Taggart recently wrote:

Janet Yellen just poured more gasoline on the anti-bank fire smoldering in my heart...

Speaking today at the 10th Biennial Federal Reserve System Community Development Research Conference in Washington, D.C, she delivered a short speech titled "Strong Foundations: The Economic Futures of Kids and Communities". In it, she focuses on the difficulties of growing up poor and is clearly trying to present herself as an advocate for raising families out of poverty.

Really, Janet? Really???

What about the record-low interest rates you've presided over?

The ones that have destroyed all incentive to save?

The ones that have starved American households of savings income, especially for those on a fixed income?

The ones that have created asset bubbles everywhere, making it nearly impossible for young families to buy a house and sending the cost of rent and other living expenses skyrocketing?

The ones that have made it tremendously cheap for companies to borrow and invest in automation, gutting future demand for unskilled/low-skilled workers?

The ones that have led to the greatest wealth disparity in our country's history?

This is a classic example of the shameless pathological hypocrisy/evil of those running our monetary and financial systems. It's akin to a bloody-handed serial killer lecturing to his dying victims "You know, someone should really do something about the murder rate in this town")

Janet has a strong tradition of “blaming the victim” which she did a few years ago by lecturing poor and working class Americans that their own lack of advancement had nothing to do with Federal Reserve policies that literally hand money to big banks and wealthy insiders. Instead, she saw the root causes as shoddy early childhood education, a lack of entrepreneurship, and not having had wealthy parents who passed down a reasonable inheritance.  I kid you not, she really said all that back in 2014. 

Maddening?  You bet.  But only if you're of the mind that Janet Yellen cares about connecting the consequences of her actions to real people and their increasingly poor outcomes.  Once you understand that Janet, et al., are psychologically unable to cross the chasm between their personal views of themselves and the consequences of their actions, it’s much less surprising. And much more sad and pathetic.

But also very human.  All throughout history, oppressors and genocidal maniacs have always deployed elaborate psychological defenses to protect their fragile egos from the sort of crushing destruction that would result from a clear-eyed view of themselves and their actions.  It’s hard to transition from one's self-inflated view of being a virtuous superhero to admitting you're actually the source of untold misery and heartbreak.

At Peak Prosperity, we hold out hope, dim though it may be, that the bankers and their bought-and-paid-for-politicians will be held accountable for the lives they are ruining, as well as the immoral and criminal acts they've committed in the process.  Without accountability, nothing ever changes. You only get a repeat of the same bad behavior that got you into trouble in the first place.

That right there, in a nutshell, describes the systemic abuse by the banking elite that began under Greenspan when he bailed out Wall Street in 1998 (during the LTCM debacle). This was followed closely by the repeal of Glass-Steagall under Clinton in 1999.  Since then, it has been an orgy of exploitation. And after a brief pause during the Great Recession (during which the banks paid themselves record bonuses while receiving taxpayer bailouts), it got worse than ever.

Conclusion (To Part 1)

All of the efforts to extend today's sky-high asset prices are drawing to a close. And the ending will be ugly. As prices correct, dazed investors will lose $trillions of market value, likely quite swiftly. 

But how was it ever supposed to end any differently?  The entire premise of what the Federal Reserve has been attempting to do is completely preposterous.  They have ignored (or just as alarming, have been ignorant of) the risks of everything from moral hazard, to historical precedent, to the role of incentives on human behavior, to common sense.

And just as happened in 2008, the accumulating instabilities within the system will reach a tipping point where they can no longer be suppressed. The deflation monster will escape from the box the central banks have been desperate to confine him within, and he will very quickly set about making up for lost time. A lot of wealth will get destroyed very quickly.

Strange as it may sound, it's our opinion that the sooner this happens, the better. Crash now while there’s still chance of picking up the pieces afterwards and making something useful from them. The longer we push off the inevitable correction, the more destructive it will be and the more difficult it will be to recover from.

Why risk taking the overdrafts to such extreme levels that the future is ruined for generations? Or ends in the sort of global warfare that can result from economically-wounded nations lashing out instead of holding themselves to proper account? 

The boomer generation in charge has a lot to answer for in this story; from their inability to lead boldly, to their selfish pushing-off of the repercussions of their own poor decisions onto future generations

More simply put: We not only need a market crash, but deserve one.  

So, with that somber realization in mind, what to do? Well, for individuals like yourself, our strongest advice is to position yourself for crisis before crisis arrives.

In Part 2: Positioning Yourself For The Crash we detail out the steps a prudent individual should seriously consider taking now, while things are still relatively tranquil.

You want to make sure the bulk of your investment capital is positioned for safety, and you want to make your lifestyle as resilient as possible so that, no matter what jarring developments the future may bring, you and the ones you love are least impacted by them.

Click here to read the report (free executive summary, enrollment required for full access)

On "GlennTV," host Glenn Beck argued that the World Health Organization has been knowingly helping the Communist Party of China spread disinformation about the coronavirus.

Why?

Well, it turns out that the current WHO director-general is a politician from Ethiopia (the very first director without a medical degree) — and apparently Ethiopia owes China a lot.

"This outbreak has revealed the WHO as nothing more than a Chinese Communist front," Glenn said. "China knew early on just how dangerous the coronavirus was, how it spread, how fast it spread, and the fatality rate, but were more concerned with getting the blame than protecting lives. So, they had their front man, the World Health Organization, tell the world there was nothing to worry about."

On Jan. 14, the WHO repeated the Chinese Communist Party's claim that the coronavirus does not travel human to human.

On Feb. 3, WHO Director-general Tedros Adhanom Ghebreyesus announced there was no need for measures that "unnecessarily interfere with international travel and trade" to combat the spread of COVID-19.

On the exact same date, a spokesperson of the Ministry of Foreign Affairs of the People's Republic of China released a statement criticizing President Trump for restricting travel to China.

"[S]ome countries, the US in particular, have inappropriately overreacted, which certainly runs counter to WHO advice. The US government hasn't provided any substantive assistance to us, but it was the first to evacuate personnel from its consulate in Wuhan, the first to suggest partial withdrawal of its embassy staff, and the first to impose a travel ban on Chinese travelers. What it has done could only create and spread fear, which is a very bad example. Even American media and experts doubted the government's decision, saying that the US government's restrictions on China are precisely what the WHO rejects, that the US is turning from overconfidence to fear and overreaction, and that banning the entry of visitors who traveled to China in the past 14 days is suspected to be violating civil rights instead of reducing risks of virus spreading," spokesperson Hua Chunying said.

Hua went on to say, "As the WHO Director-General noted, China is setting a new standard for outbreak response."

Indeed, Tedros has been very consistent in his praise for China's response to the coronavirus outbreak.

"The steps China has taken to contain the outbreak at its source appear to have bought to the world time," he told the Munich Security Conference in mid-February.

Watch the video below for more details:

In response to the COVID-19 crisis, BlazeTV is offering our BIGGEST discount ever! Get $30 off your subscription when you use promo code GLENN. Claim your special offer at https://get.blazetv.com/glenn/.

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream

On Monday's radio program, Glenn discussed claims that the Obama administration depleted and never replenished the federal supply of emergency gear, including N95 respirator masks, during the H1N1 flu, or swine flu epidemic, in 2009.

Last month, Bloomberg News, and the Los Angeles Times, among others, reported that the Obama administration used, and failed to restock supplies of N95 respirator masks, and ignored recommendations that the U.S. Department of Health and Human Services should replenish the "Strategic National Stockpile." Read more on this here.

USA Today followed up with a fact-check article titled, "Fact check: Did the Obama administration deplete the federal stockpile of N95 masks?"

On Sunday, 2020 Democratic candidate Joe Biden accused President Donald Trump of "failing to prepare our nation to respond."

President Trump fired back, "You and Obama depleted America's stockpile of N95 masks after the H1N1 swine flu pandemic. You were advised to replenish the national stockpile but FAILED. STOP LYING AND EXPLAIN!"

Watch the video below for more details:

In response to the COVID-19 crisis, BlazeTV is offering our BIGGEST discount ever! Get $30 off your subscription when you use promo code GLENN. Claim your special offer at https://get.blazetv.com/glenn/.

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream

Glenn gives the latest coronavirus numbers, updating YOU on everything needed to know as Americans and officials monitor China's new COVID-19 virus:

Daily Stats as of 5:30 AM CT (from John's Hopkins)

  • Total Confirmed Cases Worldwide: 1,359,010 (up from 1,284,805 yesterday)
  • Total Confirmed Deaths Worldwide: 75,906 (up from 70,906 yesterday)
  • Total Confirmed Recovered Worldwide: 293,454 (up from 271,782 yesterday)
  • Still Just 5% of Active Cases are considered serious (requiring hospitalization) Steady from 5% yesterday, and down from the 19% high back in February
  • Note that about 11% of US Confirmed Cases require Hospitalization, roughly on par with Italy at 12% requiring hospitalization but lower than Spain, where 17% of patients require hospitalization.
  • US has 367,650 Confirmed Cases and 10,943 Deaths, up from 336,851 cases and 9,620 cases yesterday
  • The US currently has 336,897 Active Cases of COVID-19, with about 1.2% of the US Population tested
Motor City Nightmare: More Than 700 Employees in One Detroit Hospital System Test Positive https://thehill.com/homenews/state-watch/491484-more-than-700-employees-at-one-detroit-hospital-system-test-positive-for
  • Hundreds of staff at a Detroit-area hospital system have tested positive for coronavirus.
  • Dr. Adnan Munkarah of the Henry Ford Hospital Campus confirmed 731 cases of the coronavirus among employees at the hospital, accounting for 2 percent of the hospital system's 31,600 employees.
  • As many as 1,500 at another hospital in the state have reported symptoms similar to coronavirus, though those numbers are not confirmed cases.
  • "If we are to test the whole population, you are going to see large numbers of people who are testing positive...Testing positive is just a measure of how contagious this virus is." said the hospital director.
  • "Our team members are our greatest asset and their health and safety is a top priority as we continue to respond to this pandemic," Munkarah said in a separate statement Monday evening confirmed the total number of positive test results.
  • "We know we are not immune to potential exposure and we remain grateful for the courage and dedication of our entire team," he added.
  • Detroit, Michigan's largest city, has seen a surge of coronavirus cases in recent days while the state itself has seen just over 17,000 cases of the virus – the third-largest total of any state in the U.S. More than 5,000 of those cases were reported in Detroit, where hundreds have died.
The Invisible...Invisible Enemy: Can COVID-19 Hide In Cells? https://www.the-sun.com/news/645016/fears-coronavirus-hide-cells-reactivate-recovered-patients-test-positive/
  • COVID-19 may be able to remain in the body and "reactivate" later after 51 recovered patients tested positive again.
  • The patients, from the city of Daegu, South Korea, had all spent time in quarantine while recovering from the disease but were diagnosed again within days of being released.
  • The center said it did not believe the patients had been reinfected, but that the virus had remained at undetectable levels in their cells and later "reactivated".
  • The claim runs contrary to the bulk of current evidence about how the virus works.
  • Investigators said the most likely explanation was that the clearance samples for the patients were false negatives, a common issue with nasal swab tests.
  • "Still, we remain vigilant and open to the possibility that the virus can remain dormant for some time," Dr Leong Kwok, Director of Viral Epidemiology at the National Health Institute in Seoul said.
Maybe Don't Go To the Grocery Store After All https://www.foxnews.com/health/los-angeles-braces-itself-more-coronavirus-deaths-warns-residents-not-go-shopping-warns-residents-not-to-go-out-shopping
  • With coronavirus related deaths spiking in Los Angeles County and "a critical week" ahead, health officials advised residents on Monday to stay at home and avoid shopping to limit the spread of the virus.
  • "If you have enough supplies in your home, this would be the week to skip shopping altogether," said public health department Director Barbara Ferrer, according to the Los Angeles Times.
  • Officials confirmed 420 new coronavirus cases in the county and 15 deaths on Monday.
  • Over 6,360 cases and 147 deaths have been reported since the outbreak started, per data from Johns Hopkins.
Mexico's Slow Response May Cause Problems for Texas https://www.houstonchronicle.com/business/article/mexico-slow-response-coronavirus-texas-us-15181201.php
  • As recently as March 15, some 40,000 concert goers crowded into the Foro Sor venue for the popular Vive Latino music festival.
  • Tourists from Europe and the United States were able to enter the country without any restrictions until late last week.
  • Restaurants, airports, subways and grocery stores remain open in Mexico City, though churches and large markets have closed.
  • The rapid spread of the COVID-19, however, has begun to increase the urgency of the government's response. Mexican health authorities reported on March 16 that the country had 82 cases of COVID-19, the disease caused by the coronavirus. Two weeks later, the number swelled to nearly 2439, including 125 deaths.
  • Deputy Health Minister Hugo Lopez Gatell, who two weeks ago dismissed US social distancing restrictions as "an extreme tactic" and "irresponsible" is now urging citizens to "stay at home, stay at home, stay at home."
  • "If you have food at home, stay home. There is no reason good enough to go out, period," he said.
  • Mexico is just one of many nations that reacted slowly to the coronavirus pandemic, in large part because government leaders failed to understand how contagious the virus is.
  • President Lopez Obrador spent the first half of March dismissing the gravity of the virus, encouraging Mexicans to frequent restaurants and posting videos of himself in crowds, kissing babies.
  • He said Mexico's spirituality would protect the country against the virus and made a public display of pulling out two religious amulets that he said would be his shield.
  • Mexico shares over 1,200 miles of border with the United States.
Hong Kong Closed to All Foreign Travelers, Indefinitely https://www.scmp.com/news/hong-kong/health-environment/article/3078633/coronavirus-five-hong-kong-residents-flown-back
  • The city extends its ban on arrivals after most cases over past two weeks have come from overseas.
  • Only six of 24 newly infected yesterday are local transmissions, but all are linked to entertainment venues already closed.
  • All entertainment venues are closed until further notice.
  • Hong Kong recently issued a new state of emergency order revoking travel into the country from any outside nation, including China.
  • The order will prevent Hong Kong from 'opening up' it's economy through at least early May
Drug You Can't Pronounce May Be Saving Lives https://www.freep.com/story/news/local/michigan/detroit/2020/04/06/democrat-karen-whitsett-coronavirus-hydroxychloroquine-trump/2955430001/, https://abc7.com/coronavirus-drug-covid-19-malaria-hydroxychloroquine/6079864/
  • A Democratic state representative from Detroit is crediting hydroxychloroquine — and Republican President Donald Trump who touted the drug — for saving her in her battle with the coronavirus.
  • State Rep. Karen Whitsett, who learned Monday she has tested positive for COVID-19, said she started taking hydroxychloroquine on March 31, prescribed by her doctor, after both she and her husband sought treatment for a range of symptoms on March 18.
  • "It was less than two hours" before she started to feel relief, said Whitsett, who had experienced shortness of breath, swollen lymph nodes, and what felt like a sinus infection. She is still experiencing headaches, she said.
  • Elsewhere, a Los Angeles doctor said he is seeing significant success in prescribing hydroxychloroquine in combination with zinc to treat patients with severe symptoms of COVID-19.
  • The drug has been touted as a possible treatment for COVID-19 by President Trump among others, but it remains controversial as some experts believe it is unproven and may not be effective.
  • The drug has long been used for treatment of malaria and conditions such as lupus and arthritis but is not technically approved by the FDA for COVID-19. The agency, however, is encouraging trials and has provided limited emergency authorization for its use to treat COVID-19 patients.
  • Dr. Anthony Cardillo said he has seen very promising results when prescribing hydroxychloroquine in combination with zinc for the most severely-ill COVID-19 patients.
  • "Every patient I've prescribed it to has been very, very ill and within 8 to 12 hours, they were basically symptom-free," Cardillo told Eyewitness News. "So clinically I am seeing a resolution very consistently."
Belt and Road, COVID-19 Style https://spectator.us/italy-china-ppe-sold-coronavirus/
  • After COVID-19 made its way to Italy, decimating the country's significant elderly population, China told the world it would donate Personal Protective Equipment (PPE) to help Italy stop its spread.
  • Reports later indicated that China had actually sold, not donated, the PPE to Italy. A senior Trump administration official tells The Spectator that it is much worse than that: China forced Italy to buy back the PPE supply that it gave to China during the initial coronavirus outbreak.
  • "Before the virus hit Europe, Italy sent tons of PPE to China to help China protect its own population,' the administration official explained. 'China then has sent Italian PPE back to Italy — some of it, not even all of it … and charged them for it."
  • China also recently donated PPE to Sweden and Spain, with many doctors reporting that masks and respirators included in the shipment were defective or already used.
  • "Someone got very sloppy," said a senior health official in Spain. "It must have been a mistake."

"This was a sneak attack, like a thief in the night."

"A wartime President."

"A great battle, against an invisible enemy."

"We will win and declare a great victory for our country."

All of these are direct quotes from President Donald Trump, all uttered since March 1st of this year.

And of course, all of them ring decidedly true and make perfect sense. Even Trump's most ardent opponents have referred to the current situation in which America finds itself as a once in a generation emergency, and that we should be on a wartime footing. They've called for more and more power to be handed to, no, more explicitly they've called for more power to be taken by the President to do battle against "The Invisible Enemy," everything from commandeering manufacturing plants to logistics and shipping companies to pharmaceutical manufacturing and research, to nationalizing the banking sector and all mortgages.

On the other hand, the President has preferred to form a partnership with private industries to wage the war. Turning to America's great companies to produce masks, respirators, ventilators, medicine and vaccines that will ensure our country can and will prevail.

The United States – and the entire world – is engaged in a great battle, against an unseen enemy. An enemy that threatens to kill our people and destroy our nation and our way of life. It's an enemy that we have seen and fought before, as a people. We have faced this enemy throughout human history, over and over we've had to battle it. All of us are descendants of survivors of the countless previous wars that humanity has had to fight against this hidden enemy of man.

The enemy is a disease. The enemy is a virus.

The enemy is not SARS-CoV-2, Coronavirus.

No, the virus we're battling against is Slavery.

Call it what you want. Socialism. Collectivism. Communism. Statism. Despotism. A one-world government. Those are all forms of the same thing: some people's individual liberty captured for the betterment and benefit of others. All of those are forms of enslaving some men to the will and needs of others.

A virus is a biological construct. It's a biological disease caused by a virus, an unliving, unthinking sliver of organic material and takes over cells to turn them into factories that produce more viral particles to take over more cells until, ultimately, the host is killed. Doing battle against a virus requires treating both the symptoms caused by infection as well as finding a vaccine that can destroy the virus itself.

But slavery is a political and moral construct. It's a social disease caused by an immoral idea, spread by unthinking, unfeeling human beings who transmit the disease to others turning them into factories that produce more unthinking, unfeeling human beings. They take over the lives of more and more people within a society or a country until that country is destroyed. Doing battle against slavery requires treating both the symptoms caused by the infection within a society as well as finding a cure that can destroy the idea itself.

President Donald Trump is absolutely correct. This is a war.

President Donald Trump is absolutely correct. This is a war. He's also correct, we have fought this type of war before.

But this is not a war against a coronavirus. That's child's play. Terrible though it may be and despite the thousands of lives we may lose to COVID-19, it's relatively straightforward how to defeat it. Prevent the spread, find a cure. And we will. America and the world will survive this pandemic as it has survived a million others in our past. Each of us is the descendent of survivors of a thousand biological plagues.

The President rightly stated, we cannot let the cure for COVID-19 be worse than the disease itself. And he has the right idea in terms of the outcome here: we can't let our response to coronavirus destroy the American economy.

But saving the American economy isn't really the objective. A healthy, productive American economy that enables people to generate wealth and accumulate things is a consequence, an outcome, it's not a cause in itself. What has enabled the American economy to be the most robust and powerful engine for human ingenuity, productivity and wealth generation in world history is individual liberty? Men free to think and build, to seek new achievements and to be rewarded for doing so, to collaborate with each other, to challenge and compete with each other, driving each other to be smarter, to work harder, to find the better way to solve problems.

That is America. That is the battle we're in, what we're fighting to save. Beating COVID-19 is easy, it's only a matter of time. This particular virus may be new to us, but we know the formula for its defeat, much like the long-march to destroy the NAZI war machine in World War II, the writing was on the wall long before Berlin fell. Germany's defeat was inevitable once America entered the war. So too, the defeat of SARS-CoV-2 is already a foregone conclusion, the application of human ingenuity and thousands of years of human inventiveness and knowledge ensures our ultimate victory over this latest scourge.

But that is not the great threat. If the cure for COVID-19 is the slavery of some men for the benefit and betterment of others, then perhaps it would be better for COVID-19 to take us all. If the cost of defeating the biological virus is that we succumb to the political and moral disease of collectivism, then Trump's fear will have been proved right and the cure will have been worse than the disease.

Look at what's being proposed here. In the US, the government should take over every major industry, from healthcare and pharmaceutical companies to grocery and food delivery to airlines to shipping and transportation. Construction, take it over! Banking system, take it over! Stock market, take it over!

And on the global stage, the United Nations is now calling for a permanent 10% global tax on the GDP of every country.

And on the global stage, the United Nations is now calling for a permanent 10% global tax on the GDP of every country.
Ostensibly designed to fight COVID-19, but made permanent to enable the UN to fight future pandemics, as well as the ongoing pandemic of Climate Change…oh, and Poverty and Income Inequality, and sexism and nationalism and a thousand other isms they believe are unfair.

The United States is less than 5% of the World's population, but we represent over 25% of the world's GDP. So, the UN is effectively proposing that about 4% of the population transfer 10% of our wealth each year to support the remaining 96% of the human race, including supporting countries who are our enemies and who seek our very destruction.

What is proposed here is nothing short of the permanent enslavement of the United States for the betterment and benefit of every other national on earth.

There is no doubt the human race will survive COVID-19. Human beings have survived a thousand similar pandemics with barely more than a blip in our progress as a species.

But the plague of collectivism, the idea that some men should be slaves to others, that some people have some sort of right to lay claim to the intellect and productive energy of others, that is the real battle. That is the true invisible enemy that we must yet again defeat.

Ask yourself, would you have some right to charge into Mike Lindell's My Pillow bedding factory and point a gun at him and his workers to force them to produce cotton face masks to avoid being shot? No, of course the idea sounds preposterous and all rational thinking human beings would clearly see that as an immoral, criminal act. And yet many people are proposing that we do exactly that, just the gunman wears a blue UN Helmet or carries a US Marshall's badge.

Alternatively, does Mike Lindell have the right to choose to convert his factory over to making cotton face masks, at his own expense and to pay his workers to make those masks instead of making pillows? Yes, that is moral, that is a human being engaged in activity that he believes to be virtuous and right and, yes, for the love of all that is holy — profitable.

Just as with COVID-19, the defeat of all forms of slavery should be an inevitability. And yet from every corner of our country, the call is for the forced enslavement of some people for the benefit of others.

President Trump has this right. We cannot let the cure for COVID-19 come at the cost of our economy. And if that is the objective, then it is our original principles: individual liberty, freedom of movement and speech, that is what must be defended. That is how we protect and restore our economy and our country. That is how we ensure that our children's children will also be descendants of survivors of plagues and pandemics, whether they are the biological - or the moral kind.

UPDATE: Here's how the discussion went on radio. Watch the video below.


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