honey badger stock 2 of 2

HONEY BADGER STOCK 2

Imagine you are a bank.  A central bank, not some Christmas Miracle Mom&Pop retail establishment.  You create money out of thin air and the government pays you interest on that.  No, they don’t just create money to enrich themselves, they need the consent and protection of the government with its monopoly on force.  The interest is their income for doing all the hard work of creating money out of nothing.  Since they had to lower interest rates to keep the economy moving along after their primary resource of oil started declining ( GROSS energy is climbing, but NET energy is declining ), they needed to make many new loans to make up for declining revenue.

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Oops-ee!  You made too many NINJA loans and enough went bust that you nearly imploded the whole economy ( along with loaning money to all those idiots in local government who thought the housing bubble would last forever, spending on stupid crap like more employees who would then break the pension fund ).  Well, that was a stupid business model anyway.  Only 5% interest?  Screw that!  Take over all the housing and turn them into rentals.  A MUCH better return.  You just pay a property management company a small fee to collect rents.  Then most of that sweet rental income is yours.  And screw maintenance!  We didn’t lose actual money on that construction loan.  At most, just the hypothetical lost interest payments.

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Every swinging cheese dingus out there lives in the East with a few honorary Yankee Scum on the Left Coast, so the place is just jam packed with insurance customers.  What a sweet deal for more free money.  Oh, CRAP!!! What do you mean we Gore Warmed the planet extracting all its resources and burning all its carbon fuels to make money?!?!  Does that mean we’ll see actual hurricanes?  And have to pay out on insurance claims!  Well, that sucks.  Quick, make medical insurance mandatory.

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And, WHOA!, what the heck do you mean people are going to want medical care?  We have to pay back on this insurance also?  This is really dipping into my hooker and blow fund, dude!  Kill off those whiney demanding customers with opiates and quack medical practices.  Don’t worry, more healthy 21 year olds will start paying insurance every year to replace profits.  And no, Spankey, I’m not saying this is a giant smoke filled backroom conspiracy.  I’m saying that when you create money you rule the world, and all that is needed is a profit and loss motivation to move levers.

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The Industrialists elected Lincoln and he was their Meat Puppet.  War was wonderful for the factories.  Obammy was some two bit drug dealing homosexual prostitute from Kenya who gave the bankers, our new overlords since Industrialization declined in profitability, exactly what they wanted.  Insurance money and Student Loan money is a lot more lucrative than the declining work force consumption loans.  That included housing.  When all the loan money saving Detroit jacked up autos to Not Long Ago The Cost Of A House levels, used cars shot up in price and auto loans got a lot more profitable.

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So, mortgages fell out of favor and rentals made the banks much more money, and all those old loans to suburbia made everyone dependent on cars, which were priced insanely high to make those loans more profitable.  But then, with those two factors, PLUS yearly doubling of medical insurance, and replacing those whiney McDonald’s workers with robots driving up unemployment, suddenly there is close to zero money for shopping at the mall or in any retailer other than fast food.  And even eating out in endangered.  Look at how much trouble Home Despot and notLowePrices got into when the house flipping phase ended.  No one wanted all those granite countertops, warped wood and poisonous Chinese pieces of sheetrock anymore.  Tool companies consolidated into CheapChineseToolCo. 

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Look at the state of the fast food industry.  It takes $10 to fill yourself up, on meat dishes that are 40% sawdust.  I can’t see how more people aren’t cooking at home.  I’m glad they are not, so that 99cents a pound boneless pork doesn’t get jacked up to $4 like it used to be, but I’m amazed the transition hasn’t occurred.  Not much of anything is doing well retail wise ( and the magical Retail Killer Amazon is only making profit off of the stock market bubble ).  Even those companies doing well, such as Kroger and Dollar Tree are in danger due to the loans taken to consolidate.

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Wal-Mart drove a lot of grocery stores to bankruptcy ( before they themselves were almost there ) and Kroger fed off of that.  But is it sustainable?  Family Dollar who expanded massively ( being too impatient for Dollar General to kill itself doing the same ), AND then bought Dollar Tree.  Which seems bizarre to me as how much longer, even under nominal inflation, can there be dollar stores?  Unless the plan all along is to move a few dollar items into Family Dollar and eventually turn the Trees into Family’s.  Regardless, lots of debt that killed once giants like Woolworth or Sears or Circuit City.

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If you look at most industries or most businesses, it seems to me that once there is no stock market bubble, and if big banks stop loaning again like they did before, I cannot see ANY retailers surviving as currently structured.  Without cheap loans, I’d imagine 9 out of 10 businesses would go under.  And that is being optimistic.

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What will remain?  Drive through any ghetto area and you’ll see the nationwide future of business.  Small immigrant run convenience stores for food, if you are lucky a Mom&Pop mini grocery store that actually sells non-junk food, but at near the mark-ups of those convenience stores ( I believe NYC has this model in “bodega‘s”? ) check cashing places and car lots that “only” charge 15% for its better credit customers, 25% for most everyone else.  So say goodbye to low prices, because without low interest loans and the stock market bubble paying profits this is what you’ll get.

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Will larger retailers survive in the lower rent suburbs?  Sure, at much increased prices.  As the pressure on the cost of auto ownership skyrockets, can you see their customer base staying the same?  Or will the numbers drop?  They either jack up their prices to compensate or they go out of business.  Will there be lots of unlicensed small businesses?  Sure.  But shopping as we know it is going to change drastically.  And soon. 

( .Y. )

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note: sweet Jesus!  Haven't you got "Traveler" yet? Last day at this free price  https://amzn.to/2MBCZj8
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note: backyard permaculture.  I ran across him on a video on making a woodstove much more efficient and am really enjoying his other stuff like chickens feeding on compost.  https://www.youtube.com/user/EdibleAcres 
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