Posted on 05/28/2011 9:10:11 PM PDT by Oculus III
This is what I try to get across to people. It's just math. You can't argue with it. Or at least: you cannot win the argument.
Normally, in politics, one person could say "We should tax oil companies" while another might say "Taxing corporations is bad". There is a disagreement there. People feel differently on the topic.
The budget deficit really isn't like that. It's math. We cannot keep doing what we have been doing. We are going to stop. Doesn't matter if we want to or not. We're going to stop. It's just math.
Now, politicians can acquiesce to this sooner, or they can try to delay it. But all of the politicians will come to accept that they need to fundamentally change our vision of what government can do. Because the money is gone.
We gotta 'Spread the Wealth Around'... National Review
“#3 During Barack Obama’s first two years in office, the U.S. government added more to the U.S. national debt than the first 100 U.S. Congresses combined.”
And we don’t have MSM to tell the people so they will vote more intelligently next time.
Tell everyone you know, because LMSM will continue to cover Obama’s butt.
Going to my high school reunion in a month. I’m lucky I get to go to my 30th, that I’m still alive, and that I was able to live in such a great country for MOST of my life, while it lasted.
And I guess I’ll admit — I’m living it up a bit ...because I know hard times are coming — and I know that the good memories I’ll be making might be all that sustain me in the dreary future ahead.
It’s sad that our young people won’t have the America we had. But I still have hope that people will vote more intelligently, especially with the help of the Tea Party.
Taxation at any level will not solve the problem. Like any home business or government, when liabilities exceed assets and income cannot bring down the liabilities, you have to sell assets. US government needs to sell about 5 trillion in assets to get on solid footing.
Burn the paper, eat the dogs, hang the politicians and drill for our own oil. We still do have a wealth of natural resources. We can still make drill stem and rigs. We're not really that dependent on overseas except for crap like TVs.
'Eff 'em. God will know his own. I'll bet that real Americans come out of this doing just fine. Pretenders? Meh... not so good.
/johnny
Fiat Currency Economic Death Spiral Has Been Triggered
"Sixty percent of disposable income in Asia, according to the Asian Development Bank (ADB) in a major report entitled: Global Food & Price Inflation & Developing Asia, is spent on food. Food is presently expected to average 10 percent inflation in 2011. This has created tremendous pressures on the population and potential social unrest for Asian governments. "
The last I read, our (US) average percent of income spent on food was 9%. Most recently I saw that our food and energy costs combined were 23% of our income.
I can't imagine spending 60% of my income just to eat.
Here’s a good technique for going schizo ...
Your financial adviser believes “recovery” is historically just around the corner, as earnings kick in watch the market climb as its recovered from the real estate crash and can only go up.
I do have a degree in economics from a formerly reputable university. My take is complicated. First we should be heading for Zimbabwe levels of inflation already and yet bonds are near historic lows.
Secret: We’re exporting our inflation and may be able to do so for a while longer. As the dollar drops it makes exporting countries goods more expensive so governments around the world have been buying (propping up) the dollar but this has caused inflation in their own economies with food costs (very important for most people) skyrocketing.
Because we’re still the reserve currency people are still buying treasuries largely for two reasons. First, the EU is still borderline flatline with the PIIGS and whether there will even be a Euro in 5 years.
Oh and realistically what sane country will adopt the currency of a totalitarian dictatorship which by definition and historically make their own rules? So China is out. Japan? No. Russian ruble? No - see China above.
The entire world runs on fiat currency - whose to back with real bucks? Just so you know right now I’m backing the US and our good guys cutting our government outlays drastically - it has to be done.
Over the history of the Euro, the dollar has been E1.20 - E1.60 and is rocking around E1.40 - kind of “normal”
BUT! Bad things are going to happen. EU Breakup. USA failure to control debt must bring us inflation - just look at commodity prices over the last two years - our exported inflation is coming back to roost..
Still I am stuck. How do you get into a safe currency without being taxed to death or prevented from moving your assets to another country? What market for equities and bonds? The most straight forward may be the Canadian Loonie and a world-wide basket of ETFs (stock funds) out of Canada.
Any suggestions would be appreciated as SHTF times cannot be too far off. Oh and with bummer in office nobody really knows what could happen tomorrow. ;-(
In my humble opinion we are head at best for an Argentina type economic collapse ( http://www.youtube.com/watch?v=rH6_i8zuffs ) and I have the feeling it will be soon.
For those who haven’t prepared and would like to start or for those that have and are just interested you may download my Preparedness Manual at:
http://www.tomeaker.com/kart/preparedness1i.pdf
As the LDS say “When the emergency is upon us the time for preparedness has past.”
Or as the bible says: A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.
NIV Proverbs 22:3
PING!
a run on the dollar is pretty much inevitable at this point. Everyone knows the US is going that route, has no political will to even try to contain the gushing of deficit spending, and many are just waiting for the ball to really start rolling. Given the depth of the dollar fx and treasury market, it should be interesting.
\The first thing you do when you find yourself in a hole is quit digging.
Lead, copper and brass are good moves, as are storable carbohydrates. If you have land, pigs, chickens and cows look good for the forseable future. (Only if you eat eggs and sausage for breakfast and beef for dinner).
We're rich. Our land is plentiful. God provided us everything we need. Put not your faith in man.
Unless, of course, he's grilling a freshly killed pig.
Skillsets also help, but they take time to acquire. No royal road to knowledge.
/johnny
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