Clusterfuck Nation

Clusterfuck Nation

Home
Notes
Contact / Bio
Eyesore of the Month
Podcast
Paintings by JHK
Books by JHK
Forecast
Archive
About

Share this post

Clusterfuck Nation
Clusterfuck Nation
Happy Landings
Copy link
Facebook
Email
Notes
More
User's avatar
Discover more from Clusterfuck Nation
James Howard Kunstler’s Clusterfuck Nation blog is updated Mondays and Fridays. The KunstlerCast podcast and Eyesore of the Month are monthly features. Read & comment here.
Over 31,000 subscribers
Already have an account? Sign in

Happy Landings

James Howard Kunstler's avatar
James Howard Kunstler
Jan 26, 2018

Share this post

Clusterfuck Nation
Clusterfuck Nation
Happy Landings
Copy link
Facebook
Email
Notes
More
Share

Clusterfuck Nation
For your reading pleasure Mondays and Fridays

Support this blog by visiting Jim’s Patreon Page


The blow-off orgy in the stock markets is supposedly America’s consolation prize for what many regard as the electoral bad acid trip of the Trump presidency. Sorry to tell you, it’s just another hallucination, something you’re going to have to come down from. Happy landings!

While the markets have roared parabolically up, in Technicolor, with sugar-on-top, that ole rascal, Reality, is working some hoodoo in the other rings of this psychedelic circus: namely the dollar and the bond market. The idiots on NPR’s Marketplace and the Cable TV financial shows haven’t noticed the dollar tanking the past several months or the interest rates creeping up in the bond markets. Well, isn’t that the point of living as if anything goes and nothing matters, the mantra of the age?

Alas , things are connected and consequences await. It would be rich if a flash crash ripped the Dow, S & P, and the Nasdaq to shreds twenty minutes after the Golden Golem of Greatness finished schooling the weenies of Davos on the bigly wonderfulness of his year in office. In fact, it would be a crowning comic moment in human history. I can imagine Trump surrounded by the fawning Beta Boys of Banking as the news comes in. Poof! Suddenly, he is alone in the antechamber backstage, nothing left of his admirers but the lingering scent of aftershave. The world has changed. The dream is over. In the mirror he sees something that looks dimly like Herbert Hoover in a polka-dot clown suit, with funny orange wig….

A financial smash-up is really the only thing that will break the awful spell this country is in: the belief that everyday life can go on when nothing really adds up. It seems to me that the moment is close at hand. Treasury Secretary Mnuchin told the Davos crowd that the US has “a weak dollar” policy. Is that so? Just as his department is getting ready to borrow another $1.2 trillion to cover government operations in the year to come. I’m sure the world wants nothing more than to buy bucket-loads of sovereign bonds backed by a falling currency — at the same time that the Treasury’s partner-in-crime, the Federal Reserve, is getting ready to dump an additional $600 billion bonds on the market out of its over-stuffed balance sheet. I’d sooner try to sell snow-cones in a polar bomb-cyclone.

When folks don’t want to buy bonds, the interest rates naturally have to go higher. The problem with that is your country’s treasury has to pay the bond-holders more money, but the only thing that has allowed the Treasury to keep borrowing lo these recent decades is the long-term drop of interest rates to the near-zero range. And the Fed’s timid 25-basis-point hikes in the overnight Fed Fund rate have not moved the needle quite far enough so far. But with benchmark ten-year bond rate nosing upward like a mole under the garden toward the 3.00 percent mark, something is going to give.

How long do you think the equity indexes will levitate once the bond market implodes? What vaporizes with it is a lot of the collateral backing up the unprecedented margin (extra borrowed money) that this rickety tower of financial Babel is tottering on. A black hole is opening up in some sub-basement of a tower on Wall Street, and it will suck the remaining value from this asset-stripped nation into the vacuum of history like so much silage.

Thus will begin the harsh era of America screwing its head back on and commencing the salvage operation. We’ll stop ricocheting from hashtag to hashtag and entertain a few coherent thoughts, such as, “…Gee, it turns out you really can’t get something for nothing….” That’s an important thought to have when you turn around and suddenly discover you’ve got nothing left.


New Paintings by JHK 2016 — 2017


Great Winter Reading… JHK’s new book!

“Simply the best novel about the 1960s.”

Read the first chapter here (click) on Patreon

Buy the book at Amazon or click on the cover below

or get autographed copies from Battenkill Books


Other Books by JHK

The World Made By Hand Series: Book 1:

World Made by Hand

Book 2:

The Witch of Hebron
Buy World Made By Hand Signed and local from Battenkill Books
Buy World Made By Hand on Amazon
Buy World Made By Hand at Northshire Books
Buy The Witch of Hebron signed and local from Battenkill Books
Buy The Witch of Hebron on Amazon
Buy The Witch of Hebron at Northshire Books

Book 3:

A History of the Future


Book 4:

Harrows of Spring
Signed and local from Battenkill Books
Available on Amazon
Available at Northshire Books
Signed and local from Battenkill Books
Available on Amazon
Available at Northshire Books
Geography of Nowhere
The Long Emergency
Available on Kindle
Buy The Long Emergency signed and local from Battenkill Books
Buy The Long Emergency on Amazon
Buy The Long Emergency at Northshire Books

Support this blog by visiting Jim’s Patreon Page


Subscribe to Clusterfuck Nation

By James Howard Kunstler · Thousands of paid subscribers
James Howard Kunstler’s Clusterfuck Nation blog is updated Mondays and Fridays. The KunstlerCast podcast and Eyesore of the Month are monthly features. Read & comment here.

Share this post

Clusterfuck Nation
Clusterfuck Nation
Happy Landings
Copy link
Facebook
Email
Notes
More
Share

Discussion about this post

User's avatar
The Great 'Splainin' Cometh
The meltdown has gotten so heavy liberal bureaucrats are ready to form antigovernment militias and fretting about black helicopters —Max Blumenthal
Nov 15, 2024 • 
James Howard Kunstler
1,063

Share this post

Clusterfuck Nation
Clusterfuck Nation
The Great 'Splainin' Cometh
Copy link
Facebook
Email
Notes
More
726
How It Worked
"They never prepared for algorithms that could map everything. For personnel pre-positioned everywhere. For a president who counts every week like it's…
Feb 7 • 
James Howard Kunstler
825

Share this post

Clusterfuck Nation
Clusterfuck Nation
How It Worked
Copy link
Facebook
Email
Notes
More
767
Kamala Unwinding
“. . . we are facing a catastrophic collapse of governance. With democracy reduced to a tragedy or a farce (probably both things). . . ." — Ugo Bardi
Oct 11, 2024 • 
James Howard Kunstler
970

Share this post

Clusterfuck Nation
Clusterfuck Nation
Kamala Unwinding
Copy link
Facebook
Email
Notes
More
697

Ready for more?

© 2025 James Howard Kunstler
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More

Create your profile

User's avatar

Only paid subscribers can comment on this post

Already a paid subscriber? Sign in

Check your email

For your security, we need to re-authenticate you.

Click the link we sent to , or click here to sign in.