Remember the bit about ‘60 percent of sovereigns become insolvent‘? That in a financial system leveraged 37-to-1?
We have a timeline on that now.
This weekend we will hear many stories about the Cyclone in Mexico, the chances of it harming every small town in the southern US.
Let me know when you see the discussions of how the government is going to pay SS, military pensions, VA MDs, ranger salaries, … when the rate for US bonds is 5%. That rate went over 20% back in the ’80s. Big dent real quick in a country that rolls its debt over every 4 years.
Note that we continue to hear none of this in presidential debates, discussions of party leadership, betrayal of voters by candidates, OpEds by leading public intellectuals anxious to seize our attention on the most important issues of the day, …
Did you know that the standard way out of the mess our government has gotten us into is very serious inflation, which always has consequences of its own, as all measures do. So long as government’s rate of expenditure continues to increase faster than an inflation rate, government is insulated. As long as payouts raise slower than budgets, people working in government are protected. The many adjustments to the CPI guarantee that. So gov has arranged for serious inflation, all that is required is selling bonds to the Fed, and that requires an increase in the debt ceiling.
A characteristic of what happens next is more jobs lost and unemployed people, whatever the statistics, so increased welfare costs at the same time as taxes fall, especially taxes from the businesses that used to serve all of the unemployed people who now can’t live at what they have come to believe is a normal level.
My advice is to get well out in front of that curve of declining consumption, save your pennies and learn your skills, get to know your neighbors and be known as a friendly, good guy, someone to turn to for help. Store up some favors for the future, make your block of the world a better place.
If you have immigrant neighbors, I guarantee you they are out in front of that.
That is how they got here, remember? They lived the culture America used to consider its defining set of values : frugal, hard working, neighborly, always looking for the next best chance, dreamers pretending to be intelligent risk takers. These people know how to be poor and still prosper. One never knows what kind of skill might be useful in the world ahead.
In fact, when is the last time you heard of someone talk about a balanced budget?
I believe that rapid change of direction jarred you. It did me, too. Why do you think that is?**
*I am taking over your mind, bit by bit. We know that because you have been to my web site before.
Did you see the genuinely insidious way the above set you up to distrust the future? So obviously dissed accepted assumptions? Probably made you worry about your family’s future. That is the kind of thing that changes minds and thereby changes futures, not always for the better, that depends on the quality of the mind and discipline of thought.
**Do you see that? A standard technique, leaving you with something of a puzzle for you to turn over for a bit, to come back alive in an idle moment in the future. Usually tied with some ‘feeling’ they put into your head, in this case great distrust of authority. There, first, I made you do some mental work by not quoting the phrase, you created the nugget of meaning ‘great distrust of authority’, and it thereby has more mental weight in your mind. Second, I tagged that ‘feeling’ for you to carry along with the bit of thinking, infecting your mind with insidiousness.
Are you passing these tests? I do performance art. You do performance appreciation. Your appreciation should be of the hyper-critical variety, imho as a very sophisticated propagandist, which I just proved to you again.
Hope you noticed.
Just so you know who you are dealing with here, I tell you that I crack me up sometimes. Good propaganda.
Can’t say I didn’t warn you.