Yep. I’m gonna go do it here in a few minutes…
I wish there was a decent other option, but there isn’t. So off I go to the Polls.
Whatever choice you express today, do go express it.
But while you’re doing so, spend the neural energy to contemplate that all the so-called “Free lunch” promises from the Democrats and Republicans are in fact false promises. That avoiding bankruptcy and recession is a fraud in all economic systems where lending is permitted.
The lending of capital at interest inherently creates compound growth in that interest payment stream, which eventually, no matter what you do, will overwhelm the ability to pay.
Before we tried to tamper with this reality, we had this in the market
Lots of crashes in that chart. But lots of recoveries too.
You only think you’re better off now. You’re not. All we’ve done is build the same sort of instabilities that were built in the 1920s. We’ve tried to continually avoid the consequence of lending more than the borrower can pay.
We tried to paper over the fraud of the 1990s in the 2000s. We failed. Now we’re trying to do it again, and Bernanke is debasing the dollar in a futile attempt to “rescue” a failed monetary policy.
HIS failed monetary policy.
The very same failed monetary policy that was run in the early parts of the 1930s, and “QE-whatever” is the precise same failed policy that FDR ran with devaluation!
It won’t work. It can’t, mathematically, work. What it can and will do is decimate those who are in the middle class. The 200 million Americans who are in the middle class and below. Those of means will survive this, just as they did in the 1930s. Sure, we’ll spend more on food and energy, and will have to step down our “standard of living” a bit, but we have it.
The poor, the working poor and middle class? They don’t have it, and those in the working class who were promised retirement funds from pensions and other similar instruments won’t get it either, because this debasement, at the same time, destroys safe returns available to the institutions that are investing those retirement funds.
Today you have all sorts of people talking in the media about “freezing spending.” Uh huh. Freezing eh? Yeah. Ok. Freeze has to include the 70% of the budget that is the actual problem. Remember this graph?
Quit yanking my chain. The only way to close a $1.6 trillion budget gap is to invade – severely invade – entitlement spending. Neither party will do it. But it has to happen. That they won’t do it simply means that there will be no real forward progress on this account. Not now, not until it blows up.
The mental masturbation slapping Bernanke and Paulson on the back for “job well done” is idiotic – just as it was in 1930.
This will end the same way, because we’re doing the same thing we were then.