The Global Economy Is Thomas Cook

Written by Nick Hodge
Posted September 25, 2019

What I enjoy most is the forced rationalization. 

“It’s not a new $75 billion every day. It’s the same $75 billion every day.”

That was how the mainstream defended the Fed’s actions this week to intervene in the overnight funding market. 

No matter the very simple fact that the Fed HAD to intervene. No matter that repo market dysfunction was the VERY THING that sent Lehman Brothers under and kicked off the last financial crisis. 

It’s the same $75 billion. Got it?! So it's fine.

You’ve seen these anti-Austrian sycophants at work before. And now they’re working harder than ever. 

They’re the ones who try to normalize negative interest rates. They say things like “the Fed still has tools it can use” or “why does zero interest matter? It’s just a number.”

They wouldn’t know a tool if they looked in the mirror. 

What they’re really saying is “reality doesn’t matter.” Of course, it does. 

Would you pay me to borrow money from you? Not in a million years. 

Right now, that’s what the entire financial world and its mouthpieces are trying to rationalize as normal. 

It. Is. The. Farthest. Thing. From. It. 

They and the gullible they’ve seduced are out in force. 

Unemployment is low they say. 2% growth is plenty they say. 

Meanwhile, GM is laying off people by the thousands as the United Auto Workers continues to strike — the first such spat since 2007. 

In the same week, the $2 billion travel company Thomas Cook vanished into thin air, ceasing trading and leaving half a million travelers stranded worldwide. 

That’s the world’s oldest travel firm. 

Poof. 

Gone. 

Overnight. 

Its crime? It had $2 billion in debt, could not secure additional or alternative credit, and was denied a bailout. 

Reality came quick for Mr. Cook, and the problems it was facing were no different than those with which the global economy is currently confronted. 

There will be more stranded travelers.

Oh, hey there gold... I almost didn’t see you standing there at six-year highs. 

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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