America's financial collapse is at our doorsteps.
Yes, I have written about this before and yes it may even start to sound like the blogger who cried wolf, but for those that are listening the warning signs are piling up. The latest came two days ago in a quiet legislative session where the House quietly mustered another bill to raise the debt level. Surprisingly Republicans have once again formed together and opposed all spending increases in a tight 218-214 vote, Senate will most likely approve. However the AP report does contain information that is especially frightening.
So why is the financial collapse at our doorstep? You are probably wondering what the big deal is, after all we have been robbed for decades now - what else is new? The big deal is that for the past two years our Congress and the central bank have mortgaged our futures in another attempt to inflate our economy. The same economy that has been inflated four times before since the 1980s, the same economy that has been on life support at the behest of Congress and the Greenspan/Bernanke double team. We have lost all semblance of the free market, capitalism or anything that even resembles rational thought. We have been drifting into a fascist/socialist haze and we are headed 100 mph into a reinforced steel wall known as reality.
(Courtesy of Karl Denninger, he created a snapshot of debt for me broken down into 6 important sections, combined debt is over 50 trillion dollars. Any other questions?)
Reality is this. We have hundreds of billions of dollars in debt PAYMENTS and we cannot recover fast enough to pay this debt off. Bernanke is hoping for one last hail Mary bubble to pull us out of this impending doom, but it will not happen. After two years it is time to face the music, no more bubbles, no more cheap tricks, it's over.
What happens next largely depends on the actions of a few men. This is how a central planned economy works - all you desperately misguided socialists out there, pay attention. If these men pull the liquidity plug right now and remove the cheap credit we will plunge into a massive Depression. Unemployment will spike, prices will deflate and bankruptcies will ripple through America. Our banks are not solvent and only exist because of the Fed and none of the industries have worked off all the bad investments over the years. All must downsize or close. If these men DO NOT pull the plug we will limp along like a wounded crack addict for some time only to collapse from systemic organ failure (debt). This means roughly the dollar will implode and cease to exist as the reserve currency and we will be facing an inflation of unprecedented proportions. In both cases the Federal government's takeover of our life will be compromised as every foolish program starting with Social Security and ending with the FDIC will cease to exist. If you are young and you have paid in all your life, the loss will be painful. If you are retired and your payments stop, life will be unbearable.
This is the lesson we must learn, when humanity places it's trust into a benevolent government and this government makes a mistake (like any human can do) the mistake becomes a matter of life and death. When governments screw up the consequences ripple through the universe.
Reality is coming are you going to embrace it? Will you learn from it?
Republicans who helped supply votes to increase the debt ceiling just last year _ unanimously opposed the legislation, which is required to issue new debt to pay for federal operations and deposit up to $50 billion into the Social Security trust funds.You see that? This is the same fund that our honest government is claiming exists, the same government that sends out a pretty envelope to every American each year showing them fancy numbers and how "our" money is being "invested". It is a charade that has been played for decades and today we are seeing a major news outlet flat out admitting reality. THERE IS NO SOCIAL SECURITY FUND. Just like there is no bloody FDIC fund. It has all been raided and spent by out of control politicians who should be plucked from DC, tarred, feathered and put on public display. It is just plain 'theft'.
So why is the financial collapse at our doorstep? You are probably wondering what the big deal is, after all we have been robbed for decades now - what else is new? The big deal is that for the past two years our Congress and the central bank have mortgaged our futures in another attempt to inflate our economy. The same economy that has been inflated four times before since the 1980s, the same economy that has been on life support at the behest of Congress and the Greenspan/Bernanke double team. We have lost all semblance of the free market, capitalism or anything that even resembles rational thought. We have been drifting into a fascist/socialist haze and we are headed 100 mph into a reinforced steel wall known as reality.
(Courtesy of Karl Denninger, he created a snapshot of debt for me broken down into 6 important sections, combined debt is over 50 trillion dollars. Any other questions?)
Reality is this. We have hundreds of billions of dollars in debt PAYMENTS and we cannot recover fast enough to pay this debt off. Bernanke is hoping for one last hail Mary bubble to pull us out of this impending doom, but it will not happen. After two years it is time to face the music, no more bubbles, no more cheap tricks, it's over.
What happens next largely depends on the actions of a few men. This is how a central planned economy works - all you desperately misguided socialists out there, pay attention. If these men pull the liquidity plug right now and remove the cheap credit we will plunge into a massive Depression. Unemployment will spike, prices will deflate and bankruptcies will ripple through America. Our banks are not solvent and only exist because of the Fed and none of the industries have worked off all the bad investments over the years. All must downsize or close. If these men DO NOT pull the plug we will limp along like a wounded crack addict for some time only to collapse from systemic organ failure (debt). This means roughly the dollar will implode and cease to exist as the reserve currency and we will be facing an inflation of unprecedented proportions. In both cases the Federal government's takeover of our life will be compromised as every foolish program starting with Social Security and ending with the FDIC will cease to exist. If you are young and you have paid in all your life, the loss will be painful. If you are retired and your payments stop, life will be unbearable.
This is the lesson we must learn, when humanity places it's trust into a benevolent government and this government makes a mistake (like any human can do) the mistake becomes a matter of life and death. When governments screw up the consequences ripple through the universe.
Reality is coming are you going to embrace it? Will you learn from it?
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