At the end of the day, America is on a slippery slope toward failure because the Warfare State and the Welfare State are suffocating what was once a prosperous capitalism and a resilient free society lightly intruded upon by the machinery of state. But now both parties have become handmaidens of the state. Maybe The Donald’s startling but palpable momentum toward the White House will have one saving grace. His relentless campaign against the “politicians” and the Washington money rackets may end up knocking the hypocritical stuffings out of both parties.
Nearly every single dominant superpower throughout history was eventually consumed by its unsustainable finances. This time is not different. The finances of the US government are obvious, as is the trend. We’re not talking about what ‘might happen’ or ‘could happen’. We’re talking about what IS happening. And this is not a consequence free environment.
In Iraq and Afghanistan, US military officers routinely handed bundles of cash to local residents to buy influence and undermine resistance to the American occupation. Billions of dollars were shoveled out with little or no oversight as part of the Pentagon’s "Money as a Weapon System" program. In the same way, politicians have long relied on money as a weapon system to buy votes or to undermine resistance to Washington. Presidents and congressmen are not carrying out a formal counterinsurgency against the American people, but they realize that addicting citizens to government handouts is the easiest way to breed mass docility and stretch their power.
The bottom line is that government needs more money. Lots of it. And there is perhaps no easier pool of cash to "borrow" than Americans’ retirement savings. $7.3 trillion in US IRA accounts is too large for them to ignore. And if you think it’s inconceivable for the government to borrow your retirement savings, just consider the following...
The news is filled with the everyday zigzags of those competing against each other for the Democrat and Republican Party nominations to run for the presidency of the United States. But one of the most important issues receiving little or no attention in this circus of political power lusting is the long-term danger from the huge and rising Federal government debt.
When the economy collapses, it will collapse down to a lower sustainable level. Much of the world’s infrastructure was built when oil could be extracted for $20 per barrel. That time is long gone. So, it looks like the world will need to collapse back to a level before fossil fuels - perhaps much before fossil fuels.
Lies are always misrepresentations of reality, and reality always wins. The US government rests on an inherently unstable foundation of whoppers - big lies so huge they would make big lie proponent Adolf Hitler blush. The first trick to defeating an enemy is to ascertain its biggest weaknesses and the lies, which it feeds itself, flowing from those weaknesses.
The Keynesians will not be pleased. Despite the holiday season, December spending disappointed with no change MoM (0.0% vs +0.1% exp). This is further sentiment-destructivbe as income data rose more than expected MoM (+0.3% vs +0.2% exp) even as income growth YoY slipped to its weakest in 9 months. This of course means the personal savings rate rose, pushing to 5.5% - the highest since 2012.
Something dire has happened to the intelligence and awareness of Western peoples who seem no longer capable of comprehending the machinations of “their” governments. Accountable government in the West is history. Nothing but failure and collapse awaits Western civilization.