The Fourth Turning Is Accelerating Towards Climax

“At some point, America’s short-term Crisis psychology will catch up to the long-term post-Unraveling fundamentals. This might result in a Great Devaluation, a severe drop in the market price of most financial and real assets. This devaluation could be a short but horrific panic, a free-falling price in a market with no buyers. Or it could be a series of downward ratchets linked to political events that sequentially knock the supports out from under the residual popular trust in the system. As assets devalue, trust will further disintegrate, which will cause assets to devalue further, and so on. Every slide in asset prices, employment, and production will give every generation cause to grow more alarmed.”

– Strauss & Howe – The Fourth Turning

(Jim Quinn) I’ve been writing articles about the Fourth Turning for over a decade and nothing has happened since its tumultuous onset in 2008, with the global financial collapse, created by the Federal Reserve and their Wall Street co-conspirator owners, that has not followed along the path described by Strauss and Howe in their 1997 book – The Fourth Turning.

Like molten lava bursting forth from a long dormant (80 years) volcano, the core elements of this Fourth Turning continue to flow along channels of distress, long ago built by bad decisions, corrupt politicians and the greed of bankers. The molten ingredients of this Crisis have been the central drivers since 2008 and this second major eruption is flowing along the same route. The core elements are debt, civic decay, and global disorder, just as Strauss & Howe anticipated over two decades ago.

“In retrospect, the spark might seem as ominous as a financial crash, as ordinary as a national election, or as trivial as a Tea Party. The catalyst will unfold according to a basic Crisis dynamic that underlies all of these scenarios: An initial spark will trigger a chain reaction of unyielding responses and further emergencies. The core elements of these scenarios (debt, civic decay, global disorder) will matter more than the details, which the catalyst will juxtapose and connect in some unknowable way. If foreign societies are also entering a Fourth Turning, this could accelerate the chain reaction. At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability – problem areas where America will have neglected, denied, or delayed needed action.”

– The Fourth Turning – Strauss & Howe

The initial spark for this Crisis was the massive mortgage fraud perpetrated on the nation by the Wall Street banks and enabled by their drug dealer at the Fed – Ben Bernanke. Once he took his Wall Street payoff, becoming a multi-millionaire after departing the Eccles building and reaping his rewards (aka bribes), Yellen stepped into the breach, shoveling billions into the deep pockets of the ruling elite. QE to infinity for the connected billionaire set and .25% interest on granny’s dwindling retirement nest egg.

Then another spineless academic dweeb took over the reins of money printing for the .1% in 2018. Jerome Powell had the gall to raise rates all the way back to 2.25% and wind the Fed’s balance sheet all the way down to $3.8 trillion from $4.5 trillion, before he was sternly told who he works for. And it’s not you and me. I wonder what threats were made to convince him to fall into line.

The financial engine driving the American economy blew a gasket in September 2019. Overnight repo rates soared to 10%, indicating a major malfunction under the hood, threatening the wealth and safety of our beloved Wall Street bankers and billionaire hedge fund managers, picking up nickels in front of steamrollers. Jerome jumped into action, to save his billionaire owners. The QT was turned off and QE spigot was back on. He ramped the Fed’s balance sheet by over $400 billion in three months, with three 25 basis point cuts going into 2020.

Powell, Mnuchin and their buddies at Goldman, Blackrock, JP Morgan and the rest of the banking cabal looked back at what Bernanke, Paulson, Blankfein, and their cohorts pulled off in 2008/2009 and said hold my beer. The chutzpah of what they have done in two months is breathtaking to behold, as the greatest wealth transfer from the former working class to the champagne and caviar class in the history of mankind has been executed with precision and flawlessness by high tech criminals and their propaganda spewing corporate media compatriots.

This global pandemic is the crisis they couldn’t let go to waste. There is a myriad of theories on where, how, and why this global pandemic began. The accidental release of the virus from a bio-weapons lab in Wuhan appears to be the most likely scenario, with the Chinese authorities covering up the nature and seriousness of the virus and allowing infected citizens to spread it throughout the world. This narrative will likely play into the bloody climax of this Fourth Turning.

What we do know for sure is Trump was convinced by government bureaucrat medical “experts”, using seriously flawed models, that more than 2 million Americans would die unless he quarantined the entire nation. Extrapolating the disastrous NYC results across the entire U.S. and shutting down the entire economy will prove to be one of the most disastrous decisions ever made by a U.S. president.

Instead of addressing a virus only marginally more lethal than the yearly flu in a rational fact-based manner, we allowed ourselves to be snowed by “experts” and authoritarian politicians who originally downplayed the threat, instructed everyone to not use face masks, and purposely put infected patients into nursing homes. Cuomo is hailed as a hero by his brother’s joke of a news network, when he should be scorned as an inept bungler who caused the deaths of thousands.

Democrat politicians declared racism when Trump tried to shut the borders. Instead of protecting the most vulnerable in nursing homes (40% to 50% of all fatalities), closing the borders, encouraging the vulnerable to self- quarantine, encouraging people to wear masks, and letting those under 50 years old continue to work and keep the economy from crashing, we used the Chinese tyrannical method of total lock down.

We let the overbearing reach of government and the egomaniacal authoritarian governors, mayors and Karens lock down an entire nation under the threat of incarceration. They had plenty of room in the prisons because they released pedophiles, rapists, and thieves for fear they might catch the virus. The government hammer saw everyone as a nail. And they have been hammering away for two months, with plans to keep hammering for many months to come.

The corporate fascists have utilized the government-imposed shutdown to implement their plan to increase and consolidate their power, control and wealth. The first order of business was the Fed using the shutdown as its excuse to buy the toxic assets, junk bonds, and junk government treasuries in order to bail out hedge fund managers, Wall Street CEOs and government politicians dishing out $4 trillion of payoffs to constituents with the best lobbyists.

The 32% drop in the stock market in March was unacceptable to Powell and his minions. They vowed to do whatever it took to restore the billions in wealth of the .1%. The bottom 99% be damned. Everyone knows you can’t catch coronavirus at Wal-Mart or Target among hundreds of shoppers, but can catch it alone on the beach or in your local hair salon with three people in the shop.

So, Jerome and Neel decided to slash interest rates by 150 basis points, back to virtually 0%. So much for senior citizens getting 2% in their money market fund; Wall Street needed free money again. They’ve increased their balance sheet by $2.7 trillion in seven weeks, a 65% increase. Shockingly, the stock market has skyrocketed along with the Fed balance sheet, as 33 million non-essential workers have lost their jobs and we enter a 2nd Great Depression.

The Fed pretends to care about wealth inequality even though they are solely responsible for the grand-canyon like divergence between the super-rich and the rest of us. Their vow to pump $6 trillion into the financial system will only benefit the Hamptons crowd. Lance Roberts describes what is happening:

“To no one’s real surprise, the driver of the market is simply “The Fed.” As the Fed engages in “QE,” it increases the “excess reserves” of banks. Since banks are NOT lending to consumers or businesses, that excess liquidity flows into the stock market.”    

And there you have it. Bailing out Wall Street and screwing Main Street, again. Everything the Fed has done, or will do, does not benefit the 33 million who have lost their jobs and the millions of small businesses which are purposely being snuffed out by tyrannical government overlords, so the mega-corporations, with their patriotic “we’re in this together” bullshit Madison Avenue identical ad campaigns, will be left with 90% of the economic pie instead of the 75% they had before the plandemic.

Even the worst employment figures since the Great Depression (last Fourth Turning) were spun by the government drones at the BLS to appear far better than they really are. The reported 14.7% unemployment rate is complete and utter bullshit fake news. But the mouthpieces for the oligarchs, the propaganda media outlets, had their spokes models and talking head “experts” report the gibberish as if it were true.

Maybe these faux financial journalists should have examined the 42-page press release and found the BLS purposely fudged the number by 5%:

If the workers who were recorded as employed but absent from work due to “other reasons” (over and above the number absent for other reasons in a typical April) had been classified as unemployed on temporary layoff, the overall unemployment rate would have been almost 5 percentage points higher than reported (on a not seasonally adjusted basis).

So that means even the massaged and manipulated BLS number is 20%. One look at the data shows how ludicrously low they have manipulated the number. The BLS reported the labor force as 164.5 million in February and now says it is 156.5 million. Poof!!! – 8.3 million people willingly left the workforce because they felt like it – not because they were forced out of the workforce by the same government paying the BLS to spew this fake data.

These people did not leave the workforce, they are unemployed by government mandate. The number of employed people is now back to 1999 levels and headed lower. And as if you didn’t already know, the job losses have been borne mostly by blue collar, retail and restaurant workers (heavily skewed towards women and young people), self-employed, and small businesses.

Wal-Mart, Target, Amazon, Wall Street banks and the rest of the mega-corporations are doing just fine – even better since they don’t have those pesky small businesses eating into their profits. At least the Fed was able to propel the stock market 455 points, back towards all-time highs, as 33 million people wonder where their next meal will come from. Winning!

The plain simple fact is there are 260 million working age Americans and 127 million, or 49% are not working. Of the 133 million who are working, 23 million are part-time workers and 19 million are government workers. In another shocking development, while the number of workers in private industries dropped by 18%, the number of government workers only dropped by 8%. It seems our authoritarian rulers know what is good for us, but don’t feel the need to share the pain equally.

But at least our beloved government heroes have time to stage daily parades with their fire engines and $70,000 police vehicles and do patriotic flyovers to keep the unemployed and mandatory masked plebs entertained. Something has to make up for the lack of the normal bread and circuses of double bacon cheeseburgers and watching overpaid privileged athletes play games. I can’t wait to see more tik-tok dance videos from the hero nurses and doctors overwhelmed with coronavirus patients in their empty hospitals.

If you don’t feel the mood of the country turning towards confrontation and civil chaos, you are either a lackey for the establishment, a government paid drone, or propagandized to such an extent you have chosen to be willfully ignorant of your surroundings. This Fourth Turning seemed somewhat dormant since 2012, but government, corporate, and consumer debt continued to balloon; the divide between left and right grew as the Deep State conducted a coup against a duly elected president; and global disorder accelerated in the Middle East, Europe, Asia and South America.

The core elements of debt, civic decay, and global disorder are now coalescing into a perfect storm of consequences for a nation and world built upon a teetering edifice of unpayable debt, unfulfilled promises, the unbridled greed of a blood thirsty ruling class, and the unbelievable delusions of people who think a world built upon borrowing to consume is sustainable.

The dichotomy between what is happening in the real world and what is happening in the world of the financiers will lead to violent upheaval on a timeline not anticipated by the ruling class. There is a good reason gun stores were overwhelmed with business at the outset of this over-hyped flu pandemic. As Strauss and Howe pointed out twenty three years ago, trust in the government, central bankers, the corporate media, and “experts” is disintegrating rapidly. The anger and disillusionment grows by the day and pockets of resistance are propagating throughout the country.

The un-Constitutional destruction of rights and liberties by overbearing governors, mayors and Federal bureaucrats is pushing desperate citizens towards insurrection. The police who carry out the unlawful orders of their superiors for a paycheck should realize they live among those they are bullying and pushing around. There is blow back coming and they should act accordingly. When people have lost everything they had and any hope for the future, while witnessing the privileged continuing to reap the benefits of a rigged financial system, civil disobedience will increase and blood will begin to be shed. The bubble of abnormalcy will be popped.

It is weirdly fascinating to watch a Fourth Turning unfold, while in the midst of it, and knowing we are entering the phase where people have died in numbers that put this pandemic fatality count to shame during the previous two American Crisis periods. From 1861 to 1865 almost 5% of the male population of the country were killed. That would equate to about 8 million today. From 1939 to 1945 an estimated 65 million people were killed.

The 100,000 or so who will die in 2020 from this virus is just a prelude to the death and destruction to follow. The trigger for the climactic phase of this Fourth Turning is not a virus that will not kill 99.97% of the American population, but the economic consequences of the over-reaction and authoritarian response to the virus. I’ve lost respect for numerous bloggers who desperately try to paint Sweden’s response as disastrous in an effort to support their own narrative of doom.

Sweden’s decision to allow its people and businesses to use reasonable precautions and not lock down their country in the dictatorial Chinese way, has resulted in cases per million being in line with the rest of European countries and lower than the U.S. The louder these bloggers scream, the surer you can be they have been proven wrong.

It is mesmerizing to watch those on the left, along with the Republican “Never Trumpers”, flail about as the Obama/Clinton attempted coup against Trump unravels before their very eyes. The reaction of these people, along with their toadies at CNN, MSNBC and the other left wing media, reveals an unbridgeable chasm between those believing in the rule of law and people who are willing to do anything for power.

The pure hatred from those on the left for Trump and his followers can not be contained. They despise the deplorables in flyover country with such a passion, the spittle foaming on their lips as they describe them as gun toting, uneducated, white racists, is an indication of their fury and hate. What these entitled, suit wearing, botox injected, arrogant idiot yet idiot establishment whores fail to realize is we despise them equally and we’re armed and ready. While psychopaths in suits, worthless politicians, government errand boys and remote working white collar parasites of the establishment continue to get paid, they continue to prohibit the lowly wage earner from making a living. A price will be paid.

Trump is not a nice guy. Grey Champions (Lincoln, FDR) use their power in ways not conducive to making everyone happy. They are leading during a time of crisis and will use any means necessary to win. The coup attempt by Obama, Clinton, Comey, Clapper, Brennan, Mueller, and their minions has failed and now the tables will be turned. Trump, Barr, Grennell and Durham have the power to prosecute some of the most powerful left wing politicians and Deep State operatives on the planet.

How this plays out before November will ignite further civil strife and discontent. People have already begun taking to the streets and as this unnecessary shutdown further impoverishes the masses, things will turn nasty. Government attempting to have neighbors rat on neighbors for not obeying the Nanny State commands will backfire on the rats. Animosities and grudges will sway the actions of many, once the gloves come off.

The majority of rule following sheep believe what they are being told by their elected leaders, non-elected self proclaimed medical “experts” and the feckless shills on their boob tube. They do not see what is coming, just over the horizon. The divergence of opinion on how we should proceed from this point onward is immense, with biases, delusions, and inability to grasp the unintended consequences of the actions taken thus far, driving the narratives. Listening to Trump bloviate about the tremendous economic boom which will occur when we re-open the country is laughable. He sounds like a carnival barker.

He allowed himself to be bamboozled by medical “expert” hacks and their immensely flawed garbage in-garbage out models into destroying our economy, and he may end up paying the price in November as the economy is mired in a 2nd Great Depression. But the Dow should be at 50,000 by then, so he’s got that going for him. Trump thinks you can turn the economy on again and things will be as good as new. He evidently has never read Bastiat or Hazlitt. The broken window fallacy now can be called the broken country fallacy. The financial gurus crow about the fantastic job Powell and Mnuchin have done, based upon what they have seen (31% increase in S&P 500), while that which is unseen has yet to reveal itself.

“The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

– Henry Hazlitt

The hacks who pass for economists and central bankers don’t practice the art of economics. They are enablers of plunder, as their actions benefit a small group of men who have created a legal system that allows and glorifies this as a way of life. Abnormal, morally ambiguous and in many cases illegal actions taken by those pulling the levers of power will have far reaching consequences unseen by these myopic arrogant water boys for the oligarchy.

The destruction caused by this man-made depression is permanent. The millions of small businesses demolished are not coming back. The unemployment rate will never approach 3.5% again, unless the BLS says 30 million people just left the labor market because they got independently wealthy in the stock market.

The number of corporate and personal bankruptcies will exceed anything seen in history. The mortgage, credit card and auto loan defaults are going to make 2009 look like a cake walk. The fear and panic inflicted by the government upon the psyches of the masses has insured bars, restaurants, airlines, cruises, stadiums, movie theaters and anywhere crowds formerly gathered will draw a fraction of what they did three months ago. This will lead to more bankruptcies.

The remote working arrangements forced upon companies will result in a glut of office space, as companies save money by no longer renting overpriced offices. The coming commercial real estate collapse will be one for the record books. Malls, which were barely staying alive before Covid-19, are done, as major retailers declare bankruptcy on a daily basis. Closed stores no longer employ workers.

People whose jobs are gone, with their meager savings depleted, will not be spending on frivolous gadgets and baubles. They won’t be eating out three times per week. They will just be trying to sustain themselves. A society built upon 70% of its GDP coming from consumption is now doomed. The well oiled mechanism of lending money to people so they can buy shit they can’t afford and paying them just enough to make the minimum payments has malfunctioned.

The state and local governments dependent upon sales taxes, gasoline taxes, income taxes, tolls, and property taxes to pay for their bloated bureaucracies are going to be overwhelmed with massive deficits, as their revenue streams have evaporated. This will bring the government pension crisis to a head years earlier than expected. The normal government action would be to increase taxes on the plebs. The plebs are broke and will not stand for higher taxes. They’ll demand government layoff workers. This will just throw another log on the fire of discontent. The us versus them mindset will grow ever larger until violence breaks out.

The average American suffered economic hardship throughout the 1930s, just as average Americans continued to suffer economic hardship since 2008. But the real economic hardship has just begun. As Americans dealt with privation and poverty in the late 1930s the coming global conflict was brewing. Animosities, prejudices and resentments, exacerbated by economic turmoil, stirred militaristic ambitions of hubristic rulers in Europe and Asia. The parallels with the current international dynamic may not be the same, but they do rhyme. Three months ago, the truly chaotic perilous segment of this Fourth Turning seemed far off in the distance. Now it approaches with the speed of a ballistic missile.

The possibility of global catastrophe is not taken seriously by the vast majority of Americans. Their ignorance of history is appalling and a pathetic indictment of our educational system. It’s been seventy-five years since the last global conflict and most of the people who experienced the horror are dead. We’ve forgotten the past and are condemned to relive it, just as we do every eighty or so years.

The extreme volatility seen in financial markets over the last two months only happens during bear markets. The historical perspective and insight into market valuations of the 30 something Harvard and Wharton MBA traders doesn’t reach past last Tuesday. This bear market bounce, generated on nothing but Fed liquidity and belief in Powell’s infallibility, will give way once again to a waterfall like collapse in the equity markets. This will be the final nail in the coffin of trust in the Fed. If this crackup occurs as the election approaches, the consequences and actions taken will propel the global disorder into a new stratosphere. A storm is brewing.

Do you get the feeling the War on Covid-19 will work out just as well as the War on Drugs and War on Terrorism? Do you get the feeling the models being used to panic the world into obeying and submitting to our authoritarian surveillance state benefactors are as accurate as the climate models that said the ice caps would be gone by now? Do you get the feeling this is about control and power and wealth, and not about your health or well-being?

Do you get the feeling the left wingers and their media propagandists want to keep as much of the country locked down for as long as possible in order to defeat Trump in November? Do you get the feeling these people actually want a second wave to kill as many as possible, just to prove they were right? Do you get the feeling the destruction of our economy is being cheered by those waiting to enact their green new deal and using MMT to keep the plebs sedated and non-violent? I get the feeling this is not going to end well for those initiating this take down of a nation. The existing social order is always swept away during a Fourth Turning.

I see a foggy outline of where this crisis is headed. The debt situation is untenable. The inflationists and deflationists both make strong arguments in favor of their disastrous outcome which will beset the nation. The only thing that matters is we will experience a disastrous outcome in the very near future from this reckless issuance of debt. The civic decay has entered the confrontational stage, with sides taken, weapons at the ready, awaiting the spark which will ignite the dynamite.

Fighting in the streets will be next. Which leaves us with global disorder. The attempted take down of the US oil industry by Russia and Saudi Arabia has ramped up the potential for conflict in the Middle East. But, the proxy wars of the last two decades will give way to real conflict, where the losers really lose. Putin is a wily leader who never shows his cards. He probes at our weaknesses and takes advantage when our arrogant leaders make mistakes.

This leads us to Donald J. Trump and what he does and doesn’t do over the next five months and possibly next four years. He is a proud man with a huge ego, prone to impulsive actions, and war-like in his vengefulness against perceived enemies. And his enemies are many. He has every right to throw the full weight of the law against the high-level members of the attempted coup.

In an election year, a strategy of aggressiveness against his enemies, will play well with his base and possibly distract people from the economic depression. When faced with domestic trouble, politicians have always tried to distract the masses with a foreign threat. I believe Trump is angry he allowed Gates and his vaccine squad at the CDC and WHO to bamboozle him into a national quarantine that destroyed “the best economy evah”. He can’t blame himself, so he has turned his ire towards China.

It is the consensus belief this virus originated in Wuhan, China, either from a bio-lab and/or wet market. The narrative now being spun by the U.S. and German spy agencies is China knew they had a major issue in December and colluded with the WHO to cover-up the danger and transmit-ability of the virus, while allowing its citizens to travel the globe, spreading the virus far and wide for at least a month before admitting they had a problem.

The Chinese brutally locked down Wuhan and have supposedly stopped the virus dead in its tracks. The American MSM has bought this bullshit, just like they believe their economic data. Trump has now openly accused China of causing the economic damage to our country, demanding reparations. This war of words is likely to lead to more economic sanctions and retaliatory actions designed to hurt each other’s already dire economic situation.

Just as economic sanctions against Japan in the 1930s and early 1940s backed them into a corner and convinced their leadership to attack the U.S., pushing China and/or Russia into a corner through the use of economic sanctions designed to hurt them, will provoke a reaction that will lead to war. Impossible says the linear thinkers who can’t conceive of such foolish actions. History teaches otherwise.

Egomaniacal leaders, with terrible domestic issues, overestimating their abilities to comprehend the actions of their foes, and miscalculating the odds of war, will stumble into conflict, resulting in the deaths of millions. Global war in this technologically advanced age will not resemble the wars of eighty or one-hundred and sixty years ago. Civilians will likely bear the brunt of the casualties as attacks on electrical grids, water supplies, and computer systems would paralyze our economy, causing death on a grand scale. Maybe a really deadly virus could be released by our enemies.

As Strauss & Howe warned, history offers no guarantees. Many empires before ours have fallen and counting on Providence to protect us is wishful thinking. Any war could go horribly wrong, with all potential enemies capable of launching a nuclear exchange, ending life as we know it. We have gotten our first taste of tragedy with this pandemic, and the early returns on leadership, courage, fortitude, and common sense have been found wanting.

This does not bode well for the trials and tribulations we will face over the next decade. A failure to meet the challenges ahead with bravery, grit, good judgement, adherence to our Constitutional principles, and a fair amount of luck, could lead to a defeat from which we will never recover. No one knows how and when the climax of this Crisis will play out, but the acceleration towards our rendezvous with destiny is in motion. Strauss & Howe laid out four potential outcomes to this Crisis. It’s time to steel yourself to the possibilities.

  1. This Fourth Turning could mark the end of man. It could be an omnicidal Armageddon, destroying everything, leaving nothing. If mankind ever extinguishes itself, this will probably happen when its dominant civilization triggers a Fourth Turning that ends horribly. For this Fourth Turning to put an end to all this would require an extremely unlikely blend of social disaster, human malevolence, technological perfection and bad luck.
  2. The Fourth Turning could mark the end of modernity. The Western saecular rhythm – which began in the mid-fifteenth century with the Renaissance – could come to an abrupt terminus. The seventh modern saeculum would be the last. This too could come from total war, terrible but not final. There could be a complete collapse of science, culture, politics, and society. Such a dire result would probably happen only when a dominant nation (like today’s America) lets a Fourth Turning ekpyrosis engulf the planet. But this outcome is well within the reach of foreseeable technology and malevolence.
  3. The Fourth Turning could spare modernity but mark the end of our nation. It could close the book on the political constitution, popular culture, and moral standing that the word America has come to signify. The nation has endured for three saecula; Rome lasted twelve, the Soviet Union only one. Fourth Turnings are critical thresholds for national survival. Each of the last three American Crises produced moments of extreme danger: In the Revolution, the very birth of the republic hung by a thread in more than one battle. In the Civil War, the union barely survived a four-year slaughter that in its own time was regarded as the most lethal war in history. In World War II, the nation destroyed an enemy of democracy that for a time was winning; had the enemy won, America might have itself been destroyed. In all likelihood, the next Crisis will present the nation with a threat and a consequence on a similar scale.
  4. Or the Fourth Turning could simply mark the end of the Millennial Saeculum. Mankind, modernity, and America would all persevere. Afterward, there would be a new mood, a new High, and a new saeculum. America would be reborn. But, reborn, it would not be the same.

Source: ZeroHedge