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Financial sorcery at work.

“The American lifestyle and economy depend on a vast number of implicit guarantees — systemic forms of entitlement that we implicitly feel are our birthright,” he wrote in a post on Monday. “Chief among these implicit entitlements is the Federal Reserve can always save the day.”

In either an inflationary spiral or deflationary collapse of self-reinforcing defaults, Smith warned that the Fed’s “save” would destroy the economy.

“Other than the phantom ‘wealth’ of real estate and stock bubbles, the vast majority of the ‘wealth’ generated by the Fed’s actions of the past 20 years has flowed to the top 0.1%,” he said. “This will become self-evident once the phantom gains of speculative bubbles vanish.”

Nah. Good times are here to stay – forever…