[St_Thomas_Aquinas]

——It would appear that in truth we are in FAR worse shape than during the thirties but the smoke and mirrors keep people from realizing that.——

It’s hard to know.90% of our debt is Medicare and SS IOUs written to ourselves. If this debt is repudiated, it will cause societal convulsions, not all of which would be bad.

Families would have to move in together to support the elderly, both for long term care and to pay medical bills. With charities filling the gaps, we could survive this relatively easily, in comparison to the Depression.

The remainder of the debt would require real, annual budget cuts of 5% per year, until annual spending is brought under control.

This approach to debt resolution would allow the economy to flourish, perhaps even increasing tax revenue.

None of this can possibly happen until the alternative is worse: hyperinflation, etc., which would hammer the productive sector.

[.30Carbine]

Your scenario is the way through a crisis for the average Joe, but as the Political Ruling Class will continue to spend other people's money (or imaginary money backed by imaginary money refinanced by imaginary money) there will still be no solution. The Book of Revelation contains this prophecy: "...and do not touch the wine and the oil." While the rest of mankind is dying of war and starvation the luxury class as a whole will remain oblivious until three and a half years before the end.

I heard what sounded like a voice from among the four living creatures,
saying, "A quart of wheat for a day's pay or three quarts of barley for a day's pay.
But do not damage the olive oil and the wine."
Revelation 6:6

[listenhillary]

Good post.

[Smokin' Joe]

Families would have to move in together to support the elderly, both for long term care and to pay medical bills. With charities filling the gaps, we could survive this relatively easily, in comparison to the Depression.

This isn't Walton's Mountain. Families are scattered over huge areas, and many of us are raising grandchildren, so for all practical purposes, we are 'moved in together', but the support mechanism is reversed. If we don't provide for ourselves, no one else will.

[no-to-illegals]

Think business failures on an unimagined scale. Rules out the too big to fail mantra if everything falls in. Think of surviving for the majority. Not only for those in power at that time, but for the people.

Could the majority (leadership and people) be appealed to reasonably to avoid calamity? Has it been tried? Don't know here, another topic to research, as possibly the time ticking away becomes less and less, while more and more is the call from the masses. Scary stuff.

[redgolum]

STA, I think you are wrong.

Most of the people over 65 have their medical bills paid for by the State. Take that away, and all heck will break loose.

We don't have the money to pay for it. Either on the family scale or the State scale, we don't have the money.

I will take my parents in, and my mother in law. That is my duty, and I will sacrafice to do it. But take a good, hard, look around and ask how many can or will do that? There are a good many nearing that 65 mark who are taking care of their parents, and their kids.

And the charities are a in a bad spot. Since the State has taken over the role, most charities function as an arm of the State. Look at the religious adoption agencies (those that remain), or what has happened to the religious medical institutions. They are more and more secular, to the point they have to act like a state agency not a religious institution.

It will be much worse than in the 30’s.