Well said.
We are on the same path that many failed nations followed in recent history.
Where we are headed is a devaluing of the currency. Once that happens, the dollar will be on the fast-track to total replacement.
Unfortunately, the pink-tie wearing cry baby will play golf with Obammie the Commie, who will smooth-talk him. Boehner will cave. The debt ceiling will be raised. Not only will there be no spending cuts, there will be additional spending. I’m still undecided whether they can pull off a QE3, but tend to think it will happen. This is what Obammie the Commie needs to hold off sheer economic collapse before 2012. This is all to get him reelected.
I said 6 months ago that in June or so you’d start hearing throughout the media how the economy is headed for a crisis. This is because the stimulus is running out and all the central-planners and socialists and communists want another round of monetized debt.
But they are forgetting the law of diminishing returns. If they do a QE3, it may not carry us through 2012. That play has been run and the laws of monetary science will react against it.
Yes, I suspect Obama’s new golfing buddy Boehner is going to cut a deal. Eventually the rising multi-trillion dollar debt will collapse the economy and austerity measures will be unavoidable. It is just a matter of when.