The Ultimate Panacea is… [drumroll]

“The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists”.

– Ernest Hemingway

Addison WigginDear Reader,

I’m completely aware that Hemingway’s quote is overused. But guess what? Panacea is Merriam-Webster’s word of the day. You’ll just have to suffer this lead.

That’s not to say Ernest’s comment isn’t accurate. Or even more pointedly appropriate to our current time.

We concern ourselves with permanent ruin. Some of our colleagues call it a hobby.

But we know some other folks who do the same. We first met James Howard Kunstler right after he published The Long Emergency. He was talking about climate change mostly. But after speaking with him this past week, I gained a more nuanced view of his understanding. Climate change is a thing, but the long emergency is really our response to it.

The same could be said of mass shootings.

Jim’s an interesting guy. He wrote for Rolling Stone for some time. Then went out on his own. I admire him for having the temerity to choose his own path. You’ll probably agree. Take a look:

Click here to learn moreTo learn about the greatest misallocation of capital in human history, click here

“It’s a hallucination du jour,” Jim tells me, “a hallucination of the moment. It’s a figment. And that’s exactly why so many people in the financial world are afraid of a real King Hell crash because they know if the bond market goes up in a vapor, our money’s going to disappear.

‘We’re going to be in the most unbelievable deflationary depression that world history ever saw because the money is just going to rush out of here into a black hole. And it will, of course, take the equity markets down with it as that occurs.”

There’s more where that came from at the link above.

Follow your bliss,

Addison Wiggin

Addison Wiggin
Founder, Financial Reserve

P.S. For a while on his website, Jim was offering oil paintings of roadside signs like Mobile or McDonald’s. I tried to buy one once, but he’d sold the one I wanted. He said he was painting these “landmarks” along I-87 near where he lives outside Saratoga Springs, NY because they represent an era he thinks is heartwarming but unsustainable.

Jim offered to don his Carhart jumpsuit and go out to paint another one. I said no. But now I’m thinking maybe I should reconsider.


Addison Wiggin

Addison Wiggin

Addison Wiggin is founder and executive publisher of Agora Financial LLC, an independent economic forecasting and financial research firm. He and Bill Bonner began writing the firm’s flagship Daily Reckoning in the midst of the tech boom and bust. It was one of the first widely distributed email newsletters on the Internet. The publication’s critical eye on finance and economics continues today. He’s also creator and editorial director of Agora Financial’s daily missive The 5 Min. Forecast.

Recent Alerts

Sleepwalking Into Nuclear War

We return today — however reluctantly — to the unsettling topic of nuclear war. Read More

Debt Dominoes Fall

The countdown clock begins: Russia defaults on a $100 million payment… But it’s not that Russia’s government lacks the money. Read More

What Really Wrecked Crypto

Here’s the problem for crypto: At this moment in financial history, it trades like a “risk asset” along with stocks. Read More

“This Is Not Dystopian Science Fiction”

“Weaponizing health apps — foreshadowing of things to come outside of China?” writes one of our longest of longtime readers. Read More

The System Turns “Critical”

For an update from the Prospectors and Developers Association of Canada (PDAC) in Toronto, we turn to energy, mining and precious metals expert Byron King. Read More

Reality Check (Energy)

It fell to Treasury Secretary Janet Yellen to take the bullet on the talk show circuit… and deny that Team Biden policies have anything to do with high gas prices. Read More

IRS Springs a Surprise

“They will find you, they will find your assets, they will find your account[s],” says Mark Steber of Jackson Hewitt about the goons at the IRS. Read More

Crashing the Economy to Crush Inflation

It’s becoming painfully apparent the Fed no longer has the economy’s back. Read More

The Fed Will Fail

The media won’t have the Fed’s back Read More

Worse Than 2008

The financial media are starting to invoke memories of 2008. Read More