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Tough questions indeed. Austerity programs are needed. It’s a matter of survival for our children and grandchildren.

But some 40 million Americans get their incomes from the various levels of bloated government now. The only way to get the President elected was to drop hints that he would keep the big spending going. You saw the reaction in so many voters of both political parties to the idea of nominating Scott Walker.

No one’s going to give with spending cuts or higher taxes for wealthier constituents. Needed spending cuts would cause the markets to fall some (unemployment, even less consumer spending, etc.), while investors are nervous. On the other hand, great cuts in spending might save us from a near-future bond collapse. The corporate rate had to be adjusted radically downward to compete with other nations on exports.

So now what? Are defaults and repudiations still going to be the final answer in the very near future? How many of you see that world oil demand will continue to go higher and cause inventories to fall toward a panic?

Do you folks in the West know that regular gasoline is around $2.199 a gallon and lower in some places in the U.S.? Do you know why?

We’re living in an economy that is more managed than ever before. It’s on the verge and has been for a long time. That’s why it’s so weird. That’s why formerly extremely risky commodities and land have been so popular.

Oil production is running on debt and has been largely taken over by bankers (indirectly or directly, whatever). We’re running on debt.

One way or another, it’s probably likely that many very wealthy and influential people will lose some very large fortunes. That’s been known, with their influence suddenly absent (diplomacy to keep markets stable), to release the onset of some mighty scary international conflicts and other problems.

Nations’ leaders have been biting at the bight (the bit) to fight over natural resources. The more controlling, authoritarian communist/fascist governments tend to take extreme measures to keep their populations pleased with hints and movements toward conquest against other nations. So that’s another probability in the mix.