Horse Story

Credit is a gamble that lenders make. Bets on a horse race are a response to the quality of the horses, the speed of the horses is not a response to the gambling action they attract. Think of it like this: do you think you could make a slow horse win the Kentucky Derby by encouraging everyone to bet on that horse? Of course not. Same thing with credit. Credit flows towards opportunity.

The US workforce is a slow horse, because it has been handicapped and starved through a coordinated government/ finance sector agenda to gut the engine of the US standard of living. The rejuvenating powers of deficit spending promised by the Keynesians do not work if the patient is now missing several vital organs.

The fast horses are in Asia. That's where you will find investors pouring money into the real street level economy, where they can watch their money run. These investors view America as a dry patch of land for new growth, a gimpy slug of a horse that eats too much and builds too little. They know that America is this hobbled horse, because they're the ones who broke her down.

I hope Americans now realize that the phony prosperity created by globalization was just a stage curtain that allowed the cartels to change the set while you weren't looking. Now the mirage is burning off like morning fog.