I think speak very well to uh the state of politics in the united states why politics is incredibly useless uh and just how disenfranchised and maybe not just disenfranchised, but also disillusioned. A lot of the american right is who i think i would generally align with um on a lot of issues. I i consider myself, probably politically agnostic and, if anything, im more of eileen anarcho capitalist libertarian, but there isnt really a place for those types of people. In in united states politics, you tend to either fall into the republican camp or the democrat camp, with those two camps becoming more and more stratified and polarized. As time goes on um. You know, but regardless of that, ive said for a long time that the there is no fiscally conservative party in america anymore. There is no such thing as responsible monetary policy in america anymore, its not even proposed. There may be a handful of senators who uh you know, call from the back of the bleachers. Hey, you know were not fiscally responsible, but by and large um the two major american political platforms and and donald trump was a great example of this right like so. I always get a kick out of people who pretend like. I was some sort of donald trump apologist just because i dont like the american progressive authoritarian left, um thats, not true at all, like i have a history of of tweets like going back throughout donald trumps presidency, criticizing things like his his foreign policy, some of his Geopolitical policies, lots and lots of criticism of his economic policies, because his economic policies were par for the course um.
And i think that this story is a really good example of why. The things that i focus on, which is economics and and banking and finance and and in particular money is monetary policy, is so important and why just about everything else is um pretty much just a distraction. So this is a really good story, because i think, at a glance most honest, logical people would look at this and say that its pretty ridiculous right im, not gon na read all these pictures to you. But essentially, what happened was there was a woman flying on an american airlines flight with her two year old child who was asthmatic um her child refused to wear a mask, and anybody who has a two year old knows what its like, when a two year old Decides they dont want to do something its not an easy thing to deal with? I know i have a two year old. I know what thats like and their flight attendant wasnt having it right. She wanted this mother to mask her child, or else she produced a negative covid test that her child had taken the day before showed it to the flight attendant he didnt care. He basically gave her an ultimatum and clearly she wasnt able to get her child to wear the mask because he was having asthma and panic attacks on board the plane, so the flight attendant instructed the pilot – or maybe you may you know, maybe the captain made the Decision you never really know to have the plane turned around um, so everybody on board their their flight was diverted.
They were turned back around to where they departed from and the woman was escorted off the plane where she was met by police. Now, i think pretty much anybody reasonable um would hear the story and be outraged right. Youd think that thats thats ridiculous, like i guarantee nobody on the plane um, regardless of where they stand politically or like how afraid they are of covid, would have wanted the plane to turn around in mid air because it just inconveniences everyone right. It doesnt make any sense its ridiculous. It was only designed, it was only done to humiliate and punish the woman who, in the eyes of the airline, was non compliant with their policy, and i want to highlight um some of the follow up. Statements like after the story posted by this person named tiger lily talking about how no one on the plane stood up for the mom, which which im really not surprised to hear at all um with the society it its kind of go along to get along. As long as theyre not talking to me its fine uh type of attitude uh but, interestingly down here, she posted an update that american airlines released a statement to national file and confirmed the story. Uh offered no apology and said that its their policy um again. This does not surprise me at all right. I am not shocked by this in any way whatsoever and then, if you scroll down like you, can read the comments and of course, theres lots of people who are very sympathetic.
People talking about boycotting american airlines people very mad at the flight attendant and like all like. All of these things, like i would say for the most part, are pretty reasonable reactions right. I dont think anybodys out of line here. I think that its quite obviously pretty absurd what happened, but i want to jog everyones memory. I want to remind everybody who doesnt pay attention to financial news and monetary policy that in may of 2020 american airlines was given a 5.8 billion dollar bailout right. The people forget this stuff, they dont think about this stuff. In in the financial crash of march may march april may, of 2020, american airlines received 5.8 billion from the payroll support program to staff salaries and benefits, which came in two forms: a direct grant of 4.1 billion dollars and a low interest rate loan of 1.7 billion Dollars and in addition, american airlines expects to receive uh from the separately applied for loan from the u.s treasury for approximately another 4.75 billion. Now, where did that money come from? Who gave american airlines that money? Well, it says right there. It was the u.s treasury uh. Where does the treasury get that money right? Does the treasury just have all of that money sitting around? The answer is no, they absolutely do not have all of that money just sitting around. In fact, if you look at the yearly deficit, america hasnt had any money just sitting around since the clinton presidency.
The last time the government had a surplus was in 2001. Actually, that might have been the bush presidency, so were talking about deficits over a trillion, and now you know like in the trillions with an s right the year of the coveted pandemic. So where did that money come from right? The government didnt collect that money from taxes that money comes from. The federal reserve whos the lender of the last resort, to the united states, government right and rewind time back to 2008. And what was the word that you constantly heard being thrown around by the economists and by the central bankers and by the politicians this whole new emergent economic policy called too big to fail right? We were told by these experts that these corporations, these financial institutions, were the backbone of the united states and so critically important that they were too big to fail fast forward 12 years later, and we have uh what ill talk about in a second was the easily Predictable financial crash of 2020 right, a lot of people blame kovid, but it was very predictable. I saw it coming a million miles away and i know a lot of other people who are keyed into this. Did too we see this application of this same emergency measure? Monetary policy, interventionist, fascist, central planning in the economy in 2020, and they bear it out bailed out this airline right. These people got almost 10 billion dollars. Actually they got over 10 billion dollars in basically free money.
They may or may not pay some of it back at the end of the day it doesnt matter, it was money that didnt exist was printed out of thin air, meaning that it was money taken from you out of your savings out of your bank account through The process of debasement, where the person or the entity with the monopoly on the ability to issue currency, debases your existing money, the money that youve worked to earn youve youve worked hard throughout your life. Maybe youve learned some skills. You work for your boss or you work for yourself and you work hard to produce value which you are compensated for monetarily, because society values you you save that money so that you can save your time and energy and capital for when you need it in the Future and the government steals that from you, not in the way that they do with taxes, where the agreement is transparent and overt and upfront, but in a sneaky and covert way, where they debase your purchasing power by the creation of new money and use it to Bail out these businesses that are quote too big to fail. So when you look at what i think here is probably a decent sampling of you know not i dont i dont want to lump people into like categories like i i dont like to do that. I i know i kind of did that at the beginning of this video – and i probably shouldnt do that – i should be more careful to do that.
Um, but just like looking at this girl, like im, sure that this woman, she might be like a bitcoiner. She might be um shes, probably pretty intelligent, like shes, probably pretty down to earth uh. But i see just my like cold read of this. Is i see in her bio? It says shes a my pillow supporter right, which tends to lead him to believe that she leans to the right side of the fence here right and a lot of like you see this a lot all the time on these comments on twitter, where people are like. Oh bidens, america right because they want to blame the left, because the left blames the right and the right blames the left, because thats how this dog and pony shows go because the entire purpose of american political theater is to keep you distracted from the fact that Both the right and the left like like lets, remember who was in office um during the 2008 financial crisis. You know it was george w bush and then shortly followed after that it was obama and there is practically virtually no difference anymore between the fiscal policies of the left and the fiscal policies of the right deficit spending is deficit spending, no matter if its one trillion Dollars or three trillion dollars or 50 trillion dollars uh. The fact is your balance. Your budget is either balanced or its not uh, and – and i mentioned that – i would talk about this a little bit ago, and i talk about this from time to time.
On my podcast, but i think its worth reiterating right, because the point that i know a lot of people make when they listen to arguments like what im making is they say? Well, you know 2020 was a black swan. Nobody could have seen that coming. Nobody had any idea that the markets would have crashed like that. Nobody had any clue. You know we had no choice right, and that was the same thing. They said in 2008 um its really the same excuse that pundits have used to justify every form of intervention by a central planning agency. You know, typically, the government or its its arms uh in any type of crisis. Thats ever existed, whether it be a truly natural, unpredictable phenomenon, or you know like something emergent that happens, but as a byproduct of previous decisions made by central planning agencies, and if you studied the austrian business cycle, you would know that the credit cycle is extremely predictable. In the united states, its extremely predictable, because of the way that the fed acts, especially now as they lose more and more of their ability to manipulate all of these different levers, essentially, things are becoming less and less complex. The closer we get to the endgame of this current monetary system, with interest rates, you know pretty much trapped at the lower bound. The only thing that the fed can really do is increase liquidity in the system and continue to buy back debt and continue to print money and continue to debase the currency right, but look at the date of this tweet guys.
This is from the beginning of the year in 2019, and i want to tell a little story about this tweet i tweeted this shortly after i remember shortly after i tweeted this. I had a conversation with a co worker in february because he told me that he had just sold all of his bitcoin and gone in all in on stocks, and i told him that that was a terrible idea and what i did was i pulled up. The 10 and two year bond curve, which is technically what this is. I believe this is the treasury yield curve. It doesnt say if this is the ten and two year, but i would assume that this was a ten and two year um. It might not be im, not sure, and i showed him the the bond yield curve, and i showed him how it had just inverted, and i showed him how, historically speaking, a 10 and two year bond yield curve, particularly when it coincides with a with a deep Trough in unemployment signals that theres a major recession coming within the next 12 to 18 months, and what happened? You know 18 months after this. Well, we had the march of 2020 crash that everyone blamed on kovid, right and and its you know like set your politics aside, guys and use your common sense think critically and think. Logically, how could someone like me, who you know i have a bachelors of science but im? Certainly not an epidemiologist, and i i dont study those types of things i dont work in a job that requires me to really use my bachelors of science.
I think i took a communicable diseases, collagen class thats about the extent of my knowledge of epidemiology. You know i was paying attention to kovid when it was in china and no one else in the west cared, and i was a little concerned about it then um but set your politics about all of this aside. How could someone like me, you know, have been looking at at credit spreads and the junk bond markets like go back and look at some of my tweets from this time period. Like 2019, i was talking about you know, cracks in the junk bond market and talking about um uh breakdowns in the overnight lending markets and how the fed was injecting all of this qe that they were saying wasnt qe, but it was actually qe um. I saw this coming a mile away this recession that happened in 2020 and it wasnt because of kovid um. You know you dont have to be a conspiracy theorist to recognize these things and say: hmm theres, something going on here and its really. The fact that the government wants to distract us from the fact that theyre totally broke theyre, stealing from us and theyre, engaging in fascist central planning of the economy by keeping businesses that people absolutely hate, um afloat right. Instead of letting this natural process of market liquidation. Take its course by the way, all of this crazy speculation that youre seeing in the stock market, things are, at all time highs everythings getting more expensive all of it every last bit of it shortages in the stores.
All of this quote unquote. Supply chain breakdown. All of it, every last bit of it, is caused by the monetary policy thats put in place by the fed and thats. Why i tweeted today that america is on this process uh.