Get Ready For The Pushback Against Austerity Measures: The welfare state comes to the rescue in France, or so it seems! – March 19, 2020,

Now, for the record and if you’re reading this post, I want you to understand something right now. If any Government sends you money during this period if you can save it, save it if you’re a gold or silver bug buy god and/or silver with the money the Government may give to you. Because once the excuse to waste money on COVID-19 settles down, the reality is going to settle in. Making matters worse is are the U.S elections.

Currently, there’s an expectation that Donald Trump will win the reelection bid to be the U.S President, but this isn’t guaranteed. I personally think Donald Trump will win, but this is not something that’s settled in March of 2020. With that said, during the U.S elections, if COVID-19 is yesterday’s news, the chance that a Democrat could be the U.S President will start to spook the markets and in an era with very easy lending and Government Welfare propping up markets, expect frequent fluxations in the Stock market.

This will be very, very, very bad for countries with bloated public sectors. When the money is pumped into the Stockmarket from the Government, imagine a drunk person ready to throw up, this drunk person might be holding in their vomit for as long as they can, but their internals are telling them to let the poison out of the body, why this will be happening to the stock market is that there will be a lot of bad stock buys for sale at inflated prices, the consumer will be financing an inflated retail market and debtors will be financing their debts with retail debt prices.

What this means for people who actually work in the private sector is they’ll be paying more for less, with no hope of escape and this quickly translate to more bankruptcies outside of America. Will America have bankruptcies? of course, but the problem is more than likely going to start outside of America, in countries that are reliant on U.S dollars.

In easy to understand terms the U.S has exported it’s debt problems to the rest of the world, however, the rest of the world has been using U.S dollars to finance their public sectors. You see countries like France as an example, their welfare state is already under-water. Although it didn’t look like it to me, Macron apparently was trying to shrink the welfare state in France, according to Cole Stangler a Paris-based writer, Emmanuel Macron is reversing course, however when I look at the numbers, Emmanuel Macron is kicking the can down the road and I personally think Emmanuel Macron can see the writing on the wall, however current President Donald Trump along with the U.S Federal Reserve and all the central banks in Europe have all made a coordinated effort to combat the COVID-19.

With that said these stimulus packages and all of this free money being thrown around shouldn’t be confused with where the money is coming from. The money is being printed, it’s being borrowed and it’s going into areas of the economy, which won’t need it, when this COVID-19 disaster is yesterday’s news. What I mean by this is a lot of the investments into these affected COVID-19 effected zones will be worthless investments in the future.

As an example, there’s a coordinated effort to make masks, imagine a cure for COVID-19 is found tomorrow, all the money pumped into making those masks is money wasted and once this starts to settle down and prices for things begin to normalize based on n already inflated market, the cost to service the public sectors al over the world is going to start to show itself.

A lot of public sector workers all over the world are overpaid and a lot of these public sector workers have the best pensions in the world, which are not only financed via taxes, but they’re financed via the stock market. Macron is well aware that this bill is coming due as more and more people retire every day. Now, there’s a simple way to help people to retire but it also involves shrinking the size of government and that’s called normalizing interest rates.

But what’s the problem with normalizing interest rates you say? Well, the problem with normalizing interest rates is the number of people and companies which are over-leveraged! If your mortgage is $500,000+ and you only make $70,000 per year you’re over-leveraged if mortgage rates become 5-9%. If you’re a company that uses debt to restock your inventory and lower rate or if you use borrowed cash to pay your employees paychecks, well then you’re over-leveraged. I could go on and on about overleverage, but worst of all will be the price of stocks and dividend payments if national debts globally have to be restructured.

Ok, the debt is restructured, what’s the problem after the debt has been restructured? The problem after the debt has been restructured is the public sector, public sectors in most countries are unionized and will not accept lower pension payments nor will they accept job cuts or lower paychecks. This is the event most people and most countries aren’t comprehending right now. Anyway, no sense I waste any more time on this topic, people will see for themselves in the coming years!

Opinions | The welfare state comes to the rescue in France | MSN

interesting times ahead!