Sandy & The New Precious Metals Paradigm

Sandy will help lead to a new precious metals paradigm which will thrust the US forward into a new stage dilapidation. The fallacy that devastation can be a net gain is a moral hazard of the modern mind, and must be put into perspective. Suffering cannot help the “economy,” because the economy is merely the action resulting from the cognition of individuals. The stress of devastation will weigh on the public, and can thus only contribute to their overworked and tired conditions. Suchness cannot contribute to the controlled, rigid totalitarian commerce. Sandy & the new precious metals paradigm will only unfold in the midst of continued deterioration of the fabric of the US.

Money will have to be printed as millions are fighting day-after-day in the wake of the hurricane to get to work. Many of them won’t make it to work, which will affect GDP. Individuals and families are being forced to stand in line for hours just to get a little gas (basically as much as they can carry).  Public transportation is compromised and when you can catch a subway, prepare for a situation that’ll turn your hair gray, if the culture hasn’t already done so to it.

Many people are having to commute for four hours to work, perhaps more. This is likely in loud and crunching traffic. This will tatter one’s nerves. Once there, obviously they are exhausted from the stress. There is no time for community to form and deal with the trauma of such an event. The world keeps turning as totalitarian business models (made-so due to totalitarian governance) do not have the means or licenses to take-up the needed tasks to restore sanity.

The new slavery is that people can’t live without working.  Nothing is being cleaned up except by government. Thus, worker-bees go to their offices in the skies – or wherever – and work on tasks with implications for people and transactions far, far away; not in their own communities.  This will mean more printing by the Federal Reserve just to keep one of the biggest metropolitan centers back to “work.”

People are going to come out of this mess unemployed. Who knows, perhaps a swirl of lawsuits will come after employees of multi-national corporations lose their jobs because there is no reprieve for employees during this disaster.  Business are going to shutdown due to Sandy and their bottom line.

This will surely slow down velocity of money in the economy, putting pressure on the illusion that we are not heading into a decades long hurricane of deflation and hyperinflation.

In order to fix the problem, government, with its new monetary excuse, will rebuild large swathes of coastline and everywhere else in the same cramped manner as before and simply wait for the next disaster. This is on a quest towards 100% of individuals residing in large metropolitan areas prone to disaster. The new construction is reconstruction. In the meantime, the clusterchaos will continue as people and businesses continue to operate within their business frameworks, despite demand for their services elsewhere.

Remember Krugman:

If we discovered that space aliens were planning to attack, and we needed a massive build-up to counter the space alien threat, and inflation and budget deficits took secondary place to that, this slump would be over in 18 months.

So, we have our alien invasion in the form of other-earthly winds and rains crushing into the eastern seaboard and New York. But, I think what we will learn is that, although additional printing and construction will send the meme through the nation that GDP is rising, the economy will falter and the fear trade will be bolstered.

There will be no gain from Sandy, and instead additional easing will lead to a new paradigm in the precious metals market. Perhaps we have already seen this, as precious metals have gained modestly, being led by silver,  in the past two days. The shorts have stepped in on this November 1 to play down any price rises.

The hypocrisy of thinking that Sandy might be a net gain for the economy is blatant. When we look to the Caribbean, nobody considers for a second that the devastation there might be a net gain for countries like Haiti and so on. Well, the US is moving much closer to a banana republic model than a free market model, so why think the outcome here would be any different?