FedUpUSA

We Are STILL Dancing Around The Issue (Greece)

So once again the Euro dives this morning on more chatter about Greece “leaving” the Euro.

Once again we talk about “meeting commitments.”

This discussion is both pointless and a lie, and until we start talking about the truth we cannot possibly achieve it, and therefore we also cannot possibly resolve the problems we have — here or in Europe.

That truth is simple: We cannot spend more than we take in via current taxes through government.

That’s it folks.

They can’t do it there.  We can’t do it here.  Nobody can do it, if we want financial stability.

I don’t care if this discussion is politically inexpedient.  I don’t care if it is unpopular.  I don’t care what the so-called “realities on the ground” are.  I don’t care if this means that we must face (in America) our illegal immigrant problem head-on and solve it, so that our jobs go to citizens first and only to those who want to come here to this country if there are jobs remaining.  I don’t care if this means we must repeal EMTALA and all anti-trust exemptions in the medical industry, collapsing the price of medical care by half or more, and remove all college education subsidies, bankrupting nearly all of them (so new universities can arise on the land where the current ones are, less the ivory tower and gilded crap and at 1/4 the current price.)

This isn’t just an American problem.  It is also a European problem.  Both Europe and America’s governments have intentionally made promises of benefits to citizens they know they cannot keep.  That’s fraud, and yet it is not punishable fraud in a court of law, because political promises are treated as “puffery” in the legal code and are unenforceable; your means of peaceful redress is limited to the ballot box and the losses you suffer as a consequence of these frauds are not subject to recapture.

All of the hand-waving on Europe is really about whether the German people will continue to allow the Greeks, the Spaniards, the Italians and more to simply steal the fruits of production.  The challenge here is quite simple — much of what Germany makes is uneconomic in the rest of the Euro zone and thus Germany is living a lie as well!

NONE of this has been recognized and discussed in the open.  None of the banks involved — and it’s basically all of them at the larger institution level — were held to account for their role in 2008 and they were not forced to cut the crap — that is, the frauds — that led to that collapse.  They’re still doing it, they’re still packed to the gills with garbage, they’re still lying about asset values and they’re still running around playing with ridiculous amounts of leverage and creating credit backed by nothing in the hope and prayer that something will make their bets good.

The problem with such a premise is that for their bet to be good someone else’s must go bad as wealth cannot be created by pushing paper around; it can only be mined, grown or manufactured.  This means that for the banks to “win” someone else must lose, and yet when that someone else “loses” (e.g. their job) they no longer have productive income to commit to the economy.

This is a death spiral and it is the mathematically-certain result of ever-increasing debt leverage.  The premise put forward by people like Ryan here in the US and the so-called “Technocrats” in Europe is a lie.  The losses that were sustained must be recognized and those who made them must eat them.  The government must repudiate the services it cannot manage to tax the funds to provide, and the people must have that conversation with their governments on what they demand and will pay for, resetting expectations, taxes and services.

If this is not done, and done soon — both here and in Europe — then the mathematical reality of transfers into the banks from the people will shortly come to the fore and blow up in all of our faces.

Quite simply the limits of the game that has been played for the last 30 years have been reached.

Like it or not.

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