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Government Shutdown: The Next Step In The Collapse Of The Dollar?

Tyler Durden's picture





 

Submitted by Brandon Smith of Alt-Market blog,

There is a considerable amount of debate in alternative economic circles as to whether a federal government shutdown would be a “good thing” or a “bad thing”.  Frankly, even I am partially conflicted.  I love to read mainstream news stories about how a shutdown in the capital would be “horrible” because Barack Obama might have to reduce the White House cleaning staff and wash his own laundry:

http://www.bloomberg.com/news/2013-09-27/obama-stripped-to-skeleton-staff-in-a-government-shutdown.html

It's about time that sellout bastard did something to clean up his own act.  I also love the idea of the federal government out of the picture and removed from the U.S. dynamic.  Americans need to learn again how to live without the nanny state, even if only for a few weeks, and what better way than to go cold turkey.  I can hear the tortured sobs of the socialists now, crying for their SNAP cards and low grade government healthcare.  It's like...beautiful music...

That said, as much as centralized government needs to be erased from the face of the planet, there are, indeed, consequences that must be dealt with.  It is foolish to believe otherwise.  No social system, and I mean NO SOCIAL SYSTEM, changes without pain to the population.  I am not among those that cheer a federal shutdown, because I understand that the only people to ultimately feel suffering will be average citizens, not the establishment itself.  The sheeple may be ignorant and blind, but no one deserves the kind of unmitigated hellfire that could rain down upon our country if a shutdown continues for an extended period of time.  Call me a humanitarian...

As I write this, mainstream media projections estimate a 90% chance of government shutdown by midnight on September 30th.  Though technically, government funds will not run out until October 17th:

http://www.usatoday.com/story/news/politics/2013/09/25/treasury-debt-limit-october-17/2867471/

We have dealt with this kind of talk before over the past few years, and it's interesting to see the kind of cynicism that has developed over the idea of a shutdown event.  After all, the last time a government shutdown occurred was at the end of 1995, lasting only a couple of weeks into 1996.  The GOP has folded so many times over the U.S. budget and debt ceiling that most of the public expects they will obviously do it again.  It is certainly possible that the Republicans will roll over, however, I am not so sure of that this time around.  Why?  Not because Obamacare is on the table.  Obamacare is just a distraction.  No, I'm far more interested in the circumstances surrounding the U.S. dollar. 

Obamacare is designed to fail.  Anyone with any financial or mathematical sense could look at the real national debt and deficit projections of the U.S. and understand that there is no money and never will be enough money to fund universal healthcare.  The GOP could simply let the program take effect, sit back, and watch it crash and burn over the next three to five years.  This would entail, though, watching the whole of our economy crash and burn with it. 

What we have developing in front of us is the recipe for a new false paradigm.  Already, the MSM is discussing the possibility of debt default and who will be responsible under such circumstances.  Not surprisingly “Tea Party” conservatives have been named the primary culprits if a shutdown goes south; even former Democratic president Bill Clinton is getting in on the blame game:

http://abcnews.go.com/blogs/politics/2013/09/bill-clinton-when-it-comes-to-obamacare-gop-begging-for-america-to-fail/

All the bickering over Obamacare is fascinating, I'm sure, but lets set the Affordable Care Act aside for a moment and look at the bigger and more important picture.  The private Federal Reserve Bank has just announced to much surprise a complete reversal on its suggested QE “taper” measures, resulting in a shocked and confused marketplace.  If the U.S. fiscal system is stable and sound, as the Fed has been suggesting for the past year, then why continue stimulus measures at all?  Could it be that most if not all positive economic numbers released by the Fed and the Labor Department are actually fake, and that investors have been duped into assuming overall growth when America is actually in an accelerated decline?   Wouldn't that be a high speed excrement storm straight out of left field!

The first day rally over the Fed announcement faded quickly, resulting in a slow bleed of the Dow ever since.  The magic of Fed stimulus is wearing off, and the investment world is not happy.  If I were a member of the Federal Reserve Bank, I suppose I would appreciate a large scale distraction designed to take attention away from me and my elitist club-mates as the primary culprits behind the greatest currency implosion in the history of the world.

Sadly, a government shutdown is sizable threat to the American financial system, and few people seem to get it.  Perhaps because the expectation is that any shutdown would only be a short term concern.  And, this assumption might be correct.  But, if a shutdown takes place, and, if “gridlock” continues for an extended period of time, I have little doubt that the U.S economy will experience renewed crisis.  Here's why:

Exponential Debt

Obamacare only tops a long list of already existing “unfunded liabilities” (otherwise known as entitlement programs).  These programs are not counted in the government's official calculations of national debt or deficit spending, but they cost taxpayers money all the same.  True deficit costs and national debt costs expand every year without fail.  If the debt ceiling does not rise in accordance with this exponential debt, a default is inevitable.  No amount of increased taxes could ever fill the black hole already created by negative government spending. 

A long term government shutdown will eventually require cuts in entitlements, if not a total overhaul of certain aid programs.  Imagine an end to all disability payments, including veterans disability payments.  Imagine federal employee pensions put on hold for an undesignated period of time.  Imagine food stamps placed on hiatus for 50 million people.  Imagine how many states now rely on federal funding just to keep municipalities from bankruptcy.  Get the picture now? 

End Of Foreign Faith In U.S. Treasuries

In a disgusting display of propaganda, media outlet Reuters has released an article claiming that, default or not, Asian investors and central banks are “hostage” to U.S. debt:

http://www.reuters.com/article/2013/09/29/us-usa-debt-asia-analysis-idUSBRE98S0GY20130929

Their argument essentially revolves around the lie that Asian investors believe an American default to be “unthinkable”.  Surely, the unnamed Japanese investment source they cite as an “insider” truly represents the whole of Asia.   

The reality is, the Asians (the Chinese in particular) have been preparing for a calamity in the U.S. Treasury market for years.

Most foreign investors in U.S. Treasuries have converted their long term bond holdings to short term bond holdings; meaning, they are ready to liquidate their bonds at a moment's notice.  Overall purchase levels of treasuries are either static, or falling depending on the nation involved.

China has been internationalizing its currency, the Yuan, since 2005.  China has opened Yuan “clearing houses in multiple countries to allow faster convertibility of the Yuan, quietly supplanting the dollar as the world reserve currency.  These clearing houses now exist in London, Hong Kong, Singapore, Taiwan, and Kenya.  The Federal Reserve and international banks like JP Morgan are heavily involved in the internationalization of the Yuan.

The assertion that Asia is somehow hostage to U.S. debt is a lie beyond all proportions.  In truth, the U.S. economy is actually hostage to Asian holdings of U.S. debt.  A call for a dump of U.S. treasury bonds by China, for example, in the face of a U.S. default, would immediately result in a global chain reaction ending in the destruction of the dollar as the world reserve currency.  This is not speculation, this is mathematical fact.  China is not going to sit back and do nothing while their investment in U.S. debt quickly disintegrates.  Why would they take the chance when they could could just sell, sell, sell!

The very idea that Reuters is attempting to twist the fundamentals surrounding a default event leads me to believe a default event may be preordained. 

What Will Be Defunded?

Non-essential personnel (which apparently includes Obama's maids), will be the first to receive a pink slip from the federal government.  Extra Pentagon staff, EPA staff, FDA staff, IRS staff, etc will all be cut.  Good riddance.  But what will follow will not be so pleasant. 

If a shutdown stretches for months, expect cuts in all support programs and entitlements.  Veterans disability checks, social security, Medicare, employee pensions, even the Postal Service is likely to undergo defunding.  National Parks, and schools that receive federal aid will discover immediate cash-loss.  In fact, any state or city that relies on federal funds should plan for the possibility that those funds will disappear. 

Military cuts would be at the bottom of the list, but I would not discount the chance of that either.

It cannot be denied; an enormous subsection of the American public is dependent on federal money.  If that money dries up, chaos will ensue.  I don't like it, but it is a concern.

Controlled Reaction

A long term shutdown will be catastrophe no matter how you slice it.  Foreign creditors will react harshly.  The bond market will see a haircut not unlike that given to investors in Greek treasuries.  Austerity will become an American way of life.  The only mitigating factor will be the Federal Reserve, which I believe may institute “extraordinary measures” without congressional consent in order to continue feeding stimulus into government regardless of whether the debt ceiling is raised or not.  Given enough desperation, the American public might even applaud such an action and praise the Fed as “heroic”.

In this situation, the U.S. would be facing a Weimar-style currency collapse, rather than a debt default.  But in either scenario, the dollar is the final target.  

Unfortunately, too many economic analysts presume that the only threat to the dollar's value is hyperinflation (these are the same people that quote the Fed's crooked CPI numbers).  But the dollar is just as vulnerable to a debt default and loss of reserve status.  Devaluation seems to be inevitable regardless of the outcome of the funding debate. 

The Republicans could still surrender, and even if they don't, real damages will not be felt until after October 17th.  This is plenty of time to manipulate the public into demanding more spending even when more spending is not in our best interests in the long term.  Our greatest concern, though, should be whether or not the establishment is ready to pull the plug on the dollar altogether, using the debt ceiling crisis as cover in order to distract away from the involvement of international banks in the overall problem.  There is no doubt given the facts at hand that America is on the edge of a terrible pyre.  Is this the event that will finally trigger collapse?  We'll know more in a week...

 


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Mon, 09/30/2013 - 18:42 | Link to Comment ITrustMyGut
ITrustMyGut's picture

the "perfect storm" convergence of shut down, debt ceiling, etc.... does have a statiscal chance as being a real catalyst... for MAJOR changes...who knows.. Im torn.. i want t to burn down, but.. shit..Im not really preparred for that either.. this could be the cause for all the DHS ammo purchases etc...

Mon, 09/30/2013 - 18:47 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

I am just soooooo tired of the US government borrowing money to pay people's salaries.  Apparently they are either paid too much, or we just can't afford them.  Either way, this mess has got to go.

Mon, 09/30/2013 - 18:53 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re:  I am just soooooo tired of the US government borrowing money to pay people's salaries

Salaries?    It's all for salaries?   All the loot going to: Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState is for salaries?

The Fed's give (aka spend) 2 trillion bucks on "things" every year.      How much is "salaries"?

Mon, 09/30/2013 - 19:02 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Does anyone really believe that the counterfeiters are going to stop counterfeiting?

Mon, 09/30/2013 - 19:08 | Link to Comment Pool Shark
Pool Shark's picture

 

 

We don't need this government.

This government needs us.

Time to go Galt...

 

Mon, 09/30/2013 - 19:33 | Link to Comment Never One Roach
Never One Roach's picture

Thousands of people lined up for their free health care enrollemnt  in California today, says TV MSM news.

Glad it's free, or I'd get worried I'd have to pay for my health care as well as all those thousands also.

Mon, 09/30/2013 - 19:40 | Link to Comment DosZap
DosZap's picture

Thousands of people lined up for their free health care enrollemnt in California today, says TV MSM news.

Glad it's free, or I'd get worried I'd have to pay for my health care as well as all those thousands also.

 

FREE?, lol, wait till they find out JUST the enrollment process WAS free, the actual care costs you big time.Unless you are really PO'.

Mon, 09/30/2013 - 19:43 | Link to Comment The Alarmist
The Alarmist's picture

If it wan't free, you probably could not afford it.

 

All glories to BHO, saviour of the western world.

Mon, 09/30/2013 - 19:47 | Link to Comment espirit
espirit's picture

Lock and load Bitchez.

You had forewarning.

Mon, 09/30/2013 - 19:49 | Link to Comment Pegasus Muse
Pegasus Muse's picture

Neil Cavuto Destroys Obama Over Blatant ObamaCare Lies  (3 min)

Mon, 09/30/2013 - 22:42 | Link to Comment buyingsterling
buyingsterling's picture

Every time I try to watch a 'freedom oriented' video on youtube it stops halfway and has to be reloaded. I'm sure Lady Gaga videos all work great.

 

Mon, 09/30/2013 - 22:06 | Link to Comment Mr.Bigfoot
Mr.Bigfoot's picture

C'mon. The can kicking will go on. There will be an agreement to fund the government without touching Obamacare and this will all be forgotten in short order.
DOW 16,000, Gold 1200, WTI $90
Just watch

Tue, 10/01/2013 - 01:40 | Link to Comment buttmint
buttmint's picture

espirit...you got it "lock 'n load," the moment has come...

no moar Fruit Loops!

Mon, 09/30/2013 - 19:32 | Link to Comment AllWorkedUp
AllWorkedUp's picture

Plus 100.

Fuck the USD, fuck the gov't. Let the pig get sckewerd, let it collapse.

I'm American, we don't need no stinking gov't, or reserve currency, we don't deserve it. Bring the troops home. Fuck Obamacare, fuck Obama, go isolationist.

 

Mon, 09/30/2013 - 21:11 | Link to Comment SWRichmond
SWRichmond's picture

Let's get this motherfucker started.  Tired of dying the slow way.  Ready to dish.

Tue, 10/01/2013 - 04:37 | Link to Comment Kobe Beef
Kobe Beef's picture

Pay the vets. Liquidate the rest.

Mon, 09/30/2013 - 19:51 | Link to Comment Tall Tom
Tall Tom's picture

Spend MOAR on WOAR. We need MOAR WOAR. They need to fund the MIC at all costs. Cut everything else but the MILITARY. Nobody needs SNAP. Put those Useless Eaters on the front lines as Human Shields to protect our Military. That is what is important. Our Military.

 

We need MOAR WOAR. MOAR WOAR to get the HOAR. /sarcasm

 

I mean where can you have sex with 14 Year Old Girls and get away with it. Pay attention to what this guy says at 2 Minutes and beyond...

 

http://www.youtube.com/watch?v=sKb5NXWi_B4&list=FL8QcbSiNx5aG21vlMz8A9wQ

 

Now understand that the pedophile were not convicted. There are AT LEAST TEN OF THEM ROAMING YOUR STREETS courtesy of the US Military.

 

Notice that the NSA...Military Intelligence...did not find this video...AFTER IT WAS PUBLISHED ON THE INTERNET FOR OVER FIVE YEARS.

 

Maybe those guys will find your daughter...Think about it.

Blind men!!!

Mon, 09/30/2013 - 19:29 | Link to Comment silverstud
silverstud's picture

Hang on guys .. FIAT paper dollars will have some uses in the future...

like

cheap toilet paper or

wall paper... :)

Mon, 09/30/2013 - 21:06 | Link to Comment WakeUpPeeeeeople
WakeUpPeeeeeople's picture

If you are thinking TP, best to first run them thru the dryer with some tennis shoes. Don't ask me how I know.

Mon, 09/30/2013 - 20:16 | Link to Comment Nobody
Nobody's picture

In response to your Big Ag statement, let me bring a smile to your face:
The $20+ billion dollar deficiency checks to farmers for the 2013 year (which are now paid in the 2014 fiscal year) have been put on hold.
The withdrawal symptoms begin immediately. The first major recipients of national governmental welfare (farmers in 1927), now are the first to feel the government's financial crisis. Poetic, is it not?

Mon, 09/30/2013 - 20:25 | Link to Comment cougar_w
cougar_w's picture

They'll get paid. Big-Ag owns the US government outright. All else is illusion.

Mon, 09/30/2013 - 18:54 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

The choice is between the government, or the currency.

Just spelling it out.  One has to go or the other.  I am completely indifferent in the debate, to be honest.

Mon, 09/30/2013 - 19:05 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

When they shut down Rome it was a good thing.

Same with Weimar.

Mon, 09/30/2013 - 19:10 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Well,  they never really did shut-down Rome, did they?

I think they rebranded themselves.     The smart-n-savvy people never really lose.   The dumbasses are the ones going to get killed, and their kids - of course.

Mon, 09/30/2013 - 19:44 | Link to Comment Terminus C
Terminus C's picture

This.

For the most part we'll come through the maelstrom and the other side will look... a lot like this side.  Maybe a few different names (institutions and families) but, for all intents and purposes, the same.

Mon, 09/30/2013 - 20:03 | Link to Comment o2sd
o2sd's picture

The other side will have a few less peasants though. And less marketing executives. It's not all bad.

 

Mon, 09/30/2013 - 22:25 | Link to Comment WOAR
WOAR's picture

Less is more, as they say.

Mon, 09/30/2013 - 22:57 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Is this the time for the new world currency:  Not just based on one nation's currency but a weighted average of the mix, or that UN thingie.  Plus since we are still setting the rules we will manipulate the mix and the conversion rate....

Anything to beat the discipline of gold/silver.  They cannot have that...  At all costs

Mon, 09/30/2013 - 18:59 | Link to Comment runningman18
runningman18's picture

The Post Office has even been borrowing money to remain functioning, which means they may have to make cuts if a shutdown goes on too long.

http://www.zerohedge.com/news/bailout-postal-service-begins-cost-taxpaye...

Mon, 09/30/2013 - 18:59 | Link to Comment Leonardo Fibonacci2
Leonardo Fibonacci2's picture

Obama is the worse President in the history of the USA

Mon, 09/30/2013 - 19:10 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re:  Obama is the worse President in the history of the USA

Yeah,  I've heard that one from both sides for 40 years now.   

The Red and Blue Team are doing exactly what their owners bought them to do.   The government takes 2 trillion bucks a year of dumbass loot and pumps it through Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-OldFartHealthcare, Big-AntiDrug, & Big-PoliceState in a process that took at least 60+ years to create.    Lots and lots and lots of people got really really really rich living off of socialism.   The world's greatest generation started it,   and they are all driving around in the government paid-for motor scooters finishing it off.    The world's greatest generation of scam artists.  

Mon, 09/30/2013 - 20:18 | Link to Comment object_orient
object_orient's picture

Those scam artists must be very clever and crafty.

Mon, 09/30/2013 - 23:15 | Link to Comment buyingsterling
buyingsterling's picture

I wanted to give you thumbs up and down. Up for the truth about corporate fascism and the "greatest generation", and down for not seeing that there is an essential difference between the two parties: given free reign republicans would encourage more work, generally freer markets, and less theft from the productive, demonrats would encourage the opposite (and have orgasms over all the dead babies). Fuck the left. They make me want to vomit. The real right makes me want to cheer, the 'Republican party' just makes me want to cry and hit something.

Mon, 09/30/2013 - 19:21 | Link to Comment Surging Chaos
Surging Chaos's picture

I respectfully disagree. Off the top of my head, I can think of five presidents that were a million times worse than Obama based on what they did:

- Lincoln set the precedent for a massive amount of power in the executive branch

- Wilson signed the Federal Reserve Act

- FDR created the great Ponzi scheme that is Social Security

- LBJ created another Ponzi scheme (Medicare) and The Great Society

- Nixon ended the gold standard

As bad as Barry is as a president, he couldn't have gotten to where he is right now if it weren't for his predecessors setting the stage for him. Stuff like Obamacare is a complete nightmare from hell, but the country was already finished by the time Barry got into power. He's merely accelerating the end of this big circus that started a long time ago.

Mon, 09/30/2013 - 19:44 | Link to Comment TeamDepends
TeamDepends's picture

Standing on the shoulders of giant douschebags.  Barry will be remembered as the worst however, as he will be captain when we sink down towards Davey Jones' locker.

Tue, 10/01/2013 - 05:28 | Link to Comment prains
prains's picture

No 

 

Obamney will get at leats 4 at bats to whiff this into history, that way american history will forever get to "blame" the mormons

 

 

(i drink too much to be a mormon)

Mon, 09/30/2013 - 23:19 | Link to Comment buyingsterling
buyingsterling's picture

I still say Obama is the worst: when all of those other things happened, it looked like they wouldn't take the country down. Obama knows his policies will take us down. Maybe I'm naive, but I think he wants to take us down because he doesn't like white people, and we're still the functional backbone of the country. He's a hater, and his hatred drives everything about him. Other than that he's great.

Tue, 10/01/2013 - 01:25 | Link to Comment moonstears
moonstears's picture

Mostly agree, respectfully suggest you read more on FDR and LBJ, their lists are far too short. JMO

Mon, 09/30/2013 - 20:48 | Link to Comment AGuy
AGuy's picture

"Obama is the worse President in the history of the USA"

Madison is still the worse, as he nearly lost the nation during the War of 1812. Who declares a war on a superpower (Britain at the time) when you have no army and a tiny navy? Answer: Madison.

If the US collapses before O'bama term is up or shortly after, then he will become the worse president of all time.

Tue, 10/01/2013 - 01:24 | Link to Comment moonstears
moonstears's picture

Madison had Jefferson to call upon, and did so often, one of the GREATS(Jefferson IMO). We did win the war afterall, so, meh.

Mon, 09/30/2013 - 19:04 | Link to Comment Pure Evil
Pure Evil's picture

Yawn......

When did Faber start writing pseudonymously?

Doom & Gloom - is that a Fortune 500 company?

Doom & Gloom - the new mantra.

Mon, 09/30/2013 - 20:31 | Link to Comment Groundhog Day
Groundhog Day's picture

I was told by someone that in the event of gov. employees not coming into work for a week is the equivalent of a paid vacation.  Is this true?? does anyone know if gov. employees are paid their week off once they return to work?

Mon, 09/30/2013 - 21:08 | Link to Comment Clever Name
Clever Name's picture

They got paid the last time in '95 when it was shut down. Congress decides so its up in the air, my guess is they will this time also but not everyones so sure.

Mon, 09/30/2013 - 18:53 | Link to Comment world_debt_slave
world_debt_slave's picture

no pain, no gain

Mon, 09/30/2013 - 19:39 | Link to Comment masterinchancery
masterinchancery's picture

All of the consequences seem utterly necessary and therefore good, no matter how unpleasant for some.

Mon, 09/30/2013 - 20:26 | Link to Comment stocktivity
stocktivity's picture

"China is not going to sit back and do nothing while their investment in U.S. debt quickly disintegrates.  Why would they take the chance when they could could just sell, sell, sell!"

 

Ok...but who the fuck is going to buy, buy buy all that crap?

Mon, 09/30/2013 - 20:51 | Link to Comment AGuy
AGuy's picture

"Ok...but who the fuck is going to buy, buy buy all that crap?"

Fed, Fed Fed. Of course if China  dumping dollars for tangible assets it would get really ugly real fast. If your China and you want to Take out the US military a dollar collapse might just do the trick.

Mon, 09/30/2013 - 18:44 | Link to Comment Meat Hammer
Meat Hammer's picture

I wonder what King George warned about a government shutdown.

Mon, 09/30/2013 - 18:50 | Link to Comment The Alarmist
The Alarmist's picture

King George would have warned that a small faction of extremists was seeking to bring down a rightful government with their obstinate and unreasonable demands for their demands to be given due regard despite the will of the British People (as defined by the residents of the British Isles, with the exception of areas outside of Northern and Southern Ireland, and only limited regard for most of Scotland).

Gee, when you look at it that way, we should be petitioning Parliament for re-admission to the Union.

Mon, 09/30/2013 - 19:32 | Link to Comment Dugald
Dugald's picture

Gee, when you look at it that way, we should be petitioning Parliament for re-admission to the Union.

Hell no! they are fucked up enough without you lot making it worse.

You run elections that to the rest of the world resemble three ring circuses.....then you pretend to be agast when you get clowns for leaders......YOU the voters are responsible for the mess you are in.

Mon, 09/30/2013 - 20:06 | Link to Comment AllWorkedUp
AllWorkedUp's picture

Bullshit. I didn't vote for the current pig or the pig he was running against. Voters my ass, these elections here are completely rigged.

Mon, 09/30/2013 - 23:32 | Link to Comment buyingsterling
buyingsterling's picture

You get the same shitty 'leadership' that we do. The entire western world is circling the drain, and at the root of virtually every problem is one thing: government.

Mon, 09/30/2013 - 18:50 | Link to Comment ZDRuX
ZDRuX's picture

Why would anyone takes cues about what happens in government from a fucking king? LOL

Mon, 09/30/2013 - 19:39 | Link to Comment masterinchancery
masterinchancery's picture

Especially one even more in debt than US.

Mon, 09/30/2013 - 18:50 | Link to Comment DosZap
DosZap's picture

Federal employees will still get FULL pay for this shutdown,regardless,and other than a paid vakay,what's the diff?.As long as the checks still go out, no problems will occur at street level.And the Fed can do whatever it wants, as Congress has no control over it's ops.

Mon, 09/30/2013 - 18:47 | Link to Comment The Alarmist
The Alarmist's picture

The government shutdown is akin to pulling back the curtain to reveal the Wizard of Oz. It was only a matter of time before the world grasped the gravity of the situation.

Mon, 09/30/2013 - 18:51 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

The problem is the government has grown beyond its means to pay for itself.  It is really hard to tax the unemployed.

Mon, 09/30/2013 - 19:37 | Link to Comment bonderøven-farm ass
bonderøven-farm ass's picture

No need to tax the US unemployed so long as we have global labor picking up the tab.

Mon, 09/30/2013 - 20:27 | Link to Comment cougar_w
cougar_w's picture

There is not enough tax to fund the US government, any kind of tax, collected in any manner, period.

So, it's over.

Now we get to watch it fall completely apart.

Mon, 09/30/2013 - 21:42 | Link to Comment jerry_theking_lawler
jerry_theking_lawler's picture

wrong. the corp rates are still set at 38% and highest personal is 39.6%....there is a long way to go to get to 100%....buckle up boys and girls.

Mon, 09/30/2013 - 22:11 | Link to Comment Tall Tom
Tall Tom's picture

It is EVIDENTIAL that Government EXPENDITURES exceed that of TAX REVENUES. That is why we run ONE TRILLION DOLLAR BUDGET DEFICITS. Tax Revenues do not even come close to our Four Trillion Dollar Budgets. We have to Borrow over One Trillion of that.

 

Do you know what INSOLVENCY IS? Are we there yet? Why buckle up when we have arrived. It is time to get out of the car now. We have arrived.

 

 

Mon, 09/30/2013 - 23:01 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

That is the reason why they fear gold/silver....

They have used this since before Nixon. 

The revenue accounted for by taxes is probably less than the revenue accounted for by deficit financing...

Mon, 09/30/2013 - 18:47 | Link to Comment monopoly
monopoly's picture

Its all bullshit. One, two days at most. These slime need their haircut, hotel, and expensive restaurants. What an embarrassment to the world we have become. A once great nation, now nothing but a banana republic that sucks off the teat of the Big Mother.

Mon, 09/30/2013 - 18:57 | Link to Comment booboo
booboo's picture

The obvious question is if the system needs borrowed money to survive has it outlived it's usefulness?

The WORST thing for the governments perspective is for the government to shut down and no one notices.

Mon, 09/30/2013 - 18:59 | Link to Comment dogmete
dogmete's picture

Who's the big mother? We're still afloat thanks to slave labor.

Mon, 09/30/2013 - 19:12 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

As is typical per fiat currency.

Mon, 09/30/2013 - 19:08 | Link to Comment Pure Evil
Pure Evil's picture

China, the next new big ponzi scheme.

The Yaun becoming the next reserve currency.

You might want to get in now, that way you'll be at the top of the pyramid when all the rest of the rubes start piling in.

Mon, 09/30/2013 - 19:51 | Link to Comment Terminus C
Terminus C's picture

China may run the next reserve currency, but it won't be the Yuan.  That way the elite can ensure the "rubes" don't stand a chance.

Mon, 09/30/2013 - 20:57 | Link to Comment AGuy
AGuy's picture

"China may run the next reserve currency"

I don't think so. China has high inflation and the mother of all economic bubbles (finance, real estate, technology all rolled into one). When the Dollar dies I doubt there will be a next reserve current based upon a single nation's currency (or the Euro). Perhaps it will be based upon a basket of tradeable commodities (Oil, Coal, PMs with some sort of linked index based upon supply and demand of these commodities).

Mon, 09/30/2013 - 23:07 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

It will NEVER be based on basket of commodities, unless they are sure they can manipulate them.

I think it is already decided, long ago:
SDR, " "greatly expanded SDR (special drawing rights)"

http://en.wikipedia.org/wiki/World_currency#Recent_proposals_.2821st_Cen...

Mon, 09/30/2013 - 22:02 | Link to Comment August
August's picture

I'd suggest the Hong Kong dollar, at least there's a clear peg to the USD at the moment, and I very much doubt the HKD will be going down against the USD.  Going, as they say, forward.

Mon, 09/30/2013 - 18:49 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Once again, people, get this stuff out of your mind.

Nothing money related is ever going to be permitted to take the system down.  It's just numbers on screens and they are entirely under the control of decree.  The world would cooperate and prevent numbers on a screen from causing the sort of upheaval that would cost the powerful their power.

Money is just numbers on a screen.  Its value is nothing more than what is agreed upon.  It's not physics.  It's not real.

Only oil will take the system down.  Money will never be allowed to.

Mon, 09/30/2013 - 19:07 | Link to Comment NotApplicable
NotApplicable's picture

And the author makes that point crystal clear with his "protecting" pragmatism. All of the bad things he mentions, and more, will ultimately happen regardless of the outcome of this charade.

He only hopes it doesn't happen while he's still amongst the living.

Mon, 09/30/2013 - 21:14 | Link to Comment Clever Name
Clever Name's picture

My father says the same thing.

Mon, 09/30/2013 - 19:08 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Like Michael Hastings vehicle before he had his last "accident".

The peddle is stuck and accelerating and the wheel don't turn.

"Close" or "No Close" Either way this crash is by design!

Mon, 09/30/2013 - 18:52 | Link to Comment JoBob
JoBob's picture

Shut it down and purge the system.

Mon, 09/30/2013 - 19:10 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

"There is a considerable amount of debate in alternative economic circles as to whether a federal government shutdown would be a “good thing” or a “bad thing”."

What a f-ing chump. Do you really think it would shut down?

Here's an idea for you. Shut it down so some real patriots can take this shit over.

Time for a coup!

Over.

Mon, 09/30/2013 - 19:31 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Ditto +100

But first you gotta show up in D.C. with the same numbers that came for his inauguration in the first term with -Oh i'd say 535 handcuffs + 2 for the President and V.P.

Mon, 09/30/2013 - 18:54 | Link to Comment wackydog
wackydog's picture

Well, this is the reason the DEMS can't stand the thought of postponing the exchanges or individual mandate... they NEED the money. Desperately. And they're spinning already the ideas that if reserve status for the dollar ends... the GOP's fault; if the country defaults... it's the GOP's fault.

I'm not drinking that kool aid, and hopefully the refrain raised this weekend continues to get louder: it's time for the senate and White House and the President to listen to what the PEOPLE want.

Mon, 09/30/2013 - 18:57 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re:  what the PEOPLE want

"Da people" want more free stuff, which is why we have the economic system we've got.

Get your government hands off my government motor-scooter, I'm entitled to socialism I benefit from!

Mon, 09/30/2013 - 19:17 | Link to Comment Pure Evil
Pure Evil's picture

I sincerely doubt enough working people joining the system will make a difference to the revenue stream of .gov

The vast majority are going to need subsidies just to be able to afford the premiums. The unemployed, the EBT crowd, the street criminals, the refuseniks, the illegals, aren't going to be contributing one thin dime to the system.

Well, maybe the refuseniks that work. They'll watch as their tax refund is debited the amount of the fine/tax for not participating.

I have yet to read or hear what the government anticipates the actual number of people that will obtain insurance through the exchanges without needing any type of subsidies or credits.

Mon, 09/30/2013 - 19:27 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re;  The vast majority are going to need subsidies just to be able to afford the premiums.

At this point?   What difference does it make?    What percentage of the population is living directly OR indirectly off of some Big-Gov scam?

We've had 60+ years of Big-Gov socialism and the world's greatest generation REALLY did well on all those scams.    All everybody wants now, is their cut of the scam.

Mon, 09/30/2013 - 18:55 | Link to Comment TaperProof
TaperProof's picture

I don't expect any long term shut down.  I do however thnk they will pull the plug for a little while.

Mon, 09/30/2013 - 19:30 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re:  I do however thnk they will pull the plug for a little while.

Gotta scare the OldFarts a bit:  Git yer government hands off my motor-scooter.   I'm entited to my Medicare benefits, those aren't welfare!

Mon, 09/30/2013 - 18:54 | Link to Comment rsnoble
rsnoble's picture

Maybe this will be the beginning of our "austerity", planned all along but all this bullfuck excuses.  Who knows getting to the point I don't give a fuck every gdm day is a fucking disaster anymore.

Mon, 09/30/2013 - 18:56 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

But the dollar is just as vulnerable to a debt default and loss of reserve status.

The dollar is backed by the will of the strongest military in the world.  Might may not make right, but it will certainly beat someone's ass.

Mon, 09/30/2013 - 19:04 | Link to Comment runningman18
runningman18's picture

That didn't save Germany from collapse, and having their ass handed to them...

Mon, 09/30/2013 - 21:04 | Link to Comment AGuy
AGuy's picture

"That didn't save Germany from collapse, and having their ass handed to them..."

Germany didn't have Nukes. What would have happened if Germany had nukes instead of the USA?

 

That said, if the dollar collapses it will be impossible for the US to maintain its military strength. Contractors and soldiers don't work for free. They might even turn on Washington when they realize Washington is full of bozo's and can't pay them.

 

Mon, 09/30/2013 - 22:20 | Link to Comment Tall Tom
Tall Tom's picture

"What would have happened if Germany had nukes instead of the USA?" There is not one damned thing of any real consequence that would be any different.

 

Nothing would be any different than it is now. We are in a Fascist System of Government. Nothing would have changed if Germany had won World War II. The World Currency would be the Deustchmark....er...Douchemark...instead of the US Doucher. Big Deal.

 

Sprocken ze Deutch?

Tue, 10/01/2013 - 02:46 | Link to Comment trader1
trader1's picture

https://en.wikipedia.org/wiki/The_Man_in_the_High_Castle

“They want to be the agents, not the victims, of history. They identify with God's power and believe they are godlike. That is their basic madness. They are overcome by some archtype; their egos have expanded psychotically so that they cannot tell where they begin and the godhead leaves off. It is not hubris, not pride; it is inflation of the ego to its ultimate — confusion between him who worships and that which is worshipped. Man has not eaten God; God has eaten man.” 

Mon, 09/30/2013 - 19:15 | Link to Comment Parrotile
Parrotile's picture

A Military that certainly didn't "win " in Korea, and certainly hasn't "won" in Afghanistan.

A Military that was happy to be "directed" by their "superiors" to fight against the small fry, especially if these small fry had useful assets that could be "liberated".

Bullying might work against the small fry, but it won't work against the likes of China, Russia, even India. These are the Countries that have the power to really end "The American Dream",  (and along with it maybe physically "end" a large chunk of the Middle East!).

Poking the hornet's nest is a high risk pastime. Especially since many modern hornets are nuclear-armed.

Mon, 09/30/2013 - 23:59 | Link to Comment MisterMousePotato
MisterMousePotato's picture

Opium production in Afghanistan has soared since the CIA we invaded. Heroin use is making a real comeback in the States. Growth industry.

Depends, I guess, on what you mean by "won."

Tue, 10/01/2013 - 01:59 | Link to Comment Parrotile
Parrotile's picture

With the average life expectancy of an "average" Heroin addict being 15-20 years, maybe another "win" for the "Depopulation Agenda" too -  http://www.pbs.org/wgbh/pages/frontline/shows/drugs/interviews/leshner.html

Unfortunately the addicts (Heroin, Ice, Speed, etc.) are usually those in the "normally productive" age group. Mind you seeing as the job situation is bleak these days, maybe another "covert strategy" to reduce the participation rate . . . . . .

Mon, 09/30/2013 - 18:56 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

The can is getting a little heavier, but it will definitely get kicked once again, I can assure you of that.

Mon, 09/30/2013 - 20:20 | Link to Comment YC2
YC2's picture

Yeah, now might be a good time to start martingaling into the ES.

 

If I actually do it, this will be the big one lol.

Mon, 09/30/2013 - 18:57 | Link to Comment centerline
centerline's picture

Shutdown makes for great insider trading!  Is good to be king (channeling my inner Mel Brooks)...  I love my peasants - "pull."

Mon, 09/30/2013 - 19:41 | Link to Comment Constitutional ...
Constitutional Republic's picture

Then zionists have no reason to complain when they are slain by their own TBTF ... for asset stripping the USA which gave them greatest refuge.

Mon, 09/30/2013 - 22:17 | Link to Comment WillyGroper
WillyGroper's picture

I'll hold my breath.

Mon, 09/30/2013 - 19:00 | Link to Comment Pumpkin
Pumpkin's picture

Their theatrics are boring.  We need more swords, shields and blood!

Mon, 09/30/2013 - 18:59 | Link to Comment foytik
foytik's picture

technically, government funds will not run out until October 17th

No, that is when the debt ceiling is projected to be hit. The shutdown is because no spending for the new fiscal year has been authorized, it has nothing to do with the debt ceiling. The idea of gevernment funds running out is not how things work.

Mon, 09/30/2013 - 19:09 | Link to Comment runningman18
runningman18's picture

Acutally, yes, that's exactly how things work.  The debt ceiling decision will be tied to the shutdown, they are not just conicidentally being decided at the same exact time.  Don't be distracted by the fanfare...

Mon, 09/30/2013 - 19:01 | Link to Comment Pumpkin
Pumpkin's picture

IT'S FIAT, JUST PUSH THE FUCKING BUTTON ALREADY!!

Mon, 09/30/2013 - 19:07 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

+17 trillion

~~~~~~~~~

http://conraddunn.com/AV-video-5.htm

Mon, 09/30/2013 - 19:00 | Link to Comment y3maxx
y3maxx's picture

...As predicted.....Washington is now beginning to float the idea of Annexing Western Canada.

Four Western Provinces....a plethora of Natural Resources w/ only 12.5 million Citizens.

North American Union? Diane Francis Pushes U.S.-Canada Merger...

http://www.huffingtonpost.ca/2013/09/30/north-american-union-diane-franc...

Mon, 09/30/2013 - 19:20 | Link to Comment McMolotov
McMolotov's picture

God I hope not. While it's not necessarily my first choice, Canada is my "safety school," and I want it to still be a separate country when I inevitably flee the US shit hole.

Mon, 09/30/2013 - 19:41 | Link to Comment jimmytorpedo
jimmytorpedo's picture

We're ready and waiting for you McMolotov.

The fire is on and the animals are in.

Well, most of them.

Oh shit! the chickens! gotta go,...

Mon, 09/30/2013 - 19:45 | Link to Comment cougar_w
cougar_w's picture

A good portion of the US will attempt to empty into Canada.

Let's imagine, 100 million.

They will all of them be angry, agressive, anti-social and overly-entitled refugees from a failed corporatocracy.

So. Ain't gonna work out.

Tue, 10/01/2013 - 01:45 | Link to Comment Tompooz
Tompooz's picture

Annexing Canada?

 

Bullish for housing in Auckland, New Zealand.

"Give me your tired, oppressed masses...."

Mon, 09/30/2013 - 19:01 | Link to Comment Everyman
Everyman's picture

"Burn it, burn it all"

Mon, 09/30/2013 - 19:02 | Link to Comment Parrotile
Parrotile's picture

Where does SNAP / EBT funding lie in the priorities list? Hopefully this will be one of THE "preserve at all costs" allocations since the consequences of defunding could prove "interesting" from just a Civil Unrest viewpoint http://www.theblaze.com/contributions/food-stamps-invite-fraud-government-dependence/

Tue, 10/01/2013 - 04:49 | Link to Comment Kobe Beef
Kobe Beef's picture

When they riot, shoot them. A bullet is far better than a lifetime of free shit and opportunistic crime. In the long run, our education, justice, and municipal systems will thank you.

Do not feed the parasites. Seek not to preserve them, either.

Mon, 09/30/2013 - 19:05 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

.
.
.
OMG
OMG
OMG
OMG
What's going to happen!
OMG
OMG
OMG
OMG
Will .gov for the United States of Israel shut down?
OMG
OMG
OMG
OMG
I'm soooooooooooooooooooooo worried!!
OMG
OMG
OMG
OMG
How in the world will we continue to host our masters!!
OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!OMG!Bee bee we still luv you!

Mon, 09/30/2013 - 19:06 | Link to Comment outofhere
outofhere's picture

Shut it the fuck down already and reboot CONgress under Article 1, Section 8, Clause 5... and for those Americans??? who don't have a copy of the Contract known as the Constitution of the united States said Clause reads as such...  The Congress shall have the power...  "To coin  MONEY, regulate the VALUE thereof, and of foreign Coin, and fix the Standard of WEIGHTS AND MEASURES;"

(emphasis mine)

 

TiMe To ENFoRCe THe CoNTRaCT!!! (I learn quick WB)

Mon, 09/30/2013 - 19:56 | Link to Comment outofhere
outofhere's picture

Trolling again eh Constitutional???  FO troll!!

Mon, 09/30/2013 - 19:06 | Link to Comment AON
AON's picture

NO government has ever been more worthy of Total Collapse in the history of mankind than this piece of shit we have now.  Let the whole fucking thing go goddamnit!  The US has in fact become a parasite on the world.

Mon, 09/30/2013 - 19:07 | Link to Comment Esso
Esso's picture

Fuck it. Burn it down.

http://youtu.be/zgEKLhvCCVA

Mon, 09/30/2013 - 19:08 | Link to Comment SheepDog-One
SheepDog-One's picture

Few eclownomists articles seem to get the point that I don't give a fuck! Burn it all down!

Mon, 09/30/2013 - 19:08 | Link to Comment Hannibal
Hannibal's picture

I think I have seen this movie before,... yawn!

Mon, 09/30/2013 - 19:10 | Link to Comment All Out Of Bubblegum
All Out Of Bubblegum's picture

Controlled demolitions made to look like disasters are what these fuckers specialize in. They can't capitalize on Chaos unless they engineer it.

Mon, 09/30/2013 - 19:11 | Link to Comment seek
seek's picture

I think we can do without the hysterics. Is this the final event? No. We won't see that for at least another couple years.

Mon, 09/30/2013 - 19:11 | Link to Comment The Shootist
The Shootist's picture

I want it all to burn.

Mon, 09/30/2013 - 19:22 | Link to Comment cougar_w
cougar_w's picture

No you don't.

But it will nevertheless.

Mon, 09/30/2013 - 19:13 | Link to Comment adoyi
adoyi's picture

You are all a bit narrow minded in your thinking. There is no alternative to the Dollar as China and Germany are export led economies and the chinese do not have the domestic consumption nor the military might to float a reserve currency. FYI the Russians actually made a proposal at the end of WW2 to partition China with the USA and vehemently resists transferring vital military secrets to the Chinese.

 

I know you guys hate the current state of affairs but hey this is the new normal of zero growth. The discovery of nuclear weapons have put an end to major war which usually accounts for the rebalancing of major economies, mucho gracias!!

Mon, 09/30/2013 - 19:17 | Link to Comment runningman18
runningman18's picture

The IMF's SDR is the alternative to the dollar and it's been in existence for a long time.  You should read up on it...

Mon, 09/30/2013 - 23:13 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Yep, I think that is the plan.

It avoids letting gold/silver off the mat and allows for future games.

posted earlier

http://en.wikipedia.org/wiki/World_currency#Recent_proposals_.2821st_Cen...

Mon, 09/30/2013 - 19:19 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re;  The discovery of nuclear weapons have put an end to major war which usually accounts for the rebalancing of major economies

Good points.  

And, it will be interesting to see what the smart-n-savvy people come-up with for a new "reset" process.

Mon, 09/30/2013 - 21:00 | Link to Comment DaveA
DaveA's picture

adoyi has a point. If God Himself came down from Heaven and decreed that all trade shall henceforth be conducted in gold, Germany and China would still export stuff, and we'd promise to send them gold, or unspecified goods of equivalent value, at some future date.

I call this the W.T. Grant strategy.

Mon, 09/30/2013 - 19:12 | Link to Comment Duc888
Duc888's picture

800,000 "non-essential" people.  LOL  Can you say WASTE?  How many corporations or private businesses have 800K shitbags on the payroll wasting money, resources and oxygen.

 

Fire 'em all.  Tomorrow.

 

 

Mon, 09/30/2013 - 19:25 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

So, 800,000 "non-essential" people time 100K salary each is $80 billion dollars saved per year.

The government gives away 2 trillion bucks per year.   What percentage is that 80 billion bucks?

Maybe we should cut Big-Ag & Big-MIC too?    Naa,   lets make sure MY scam is protected.       I only care about the government "workers" who send me my Big-Gov loot I'm living off of.  

Mon, 09/30/2013 - 20:27 | Link to Comment Tall Tom
Tall Tom's picture

Usually I agree with you. Not in this case.

 

That is 4%. What if that 4% plus were tacked onto our GDP because they were not sucking from the Government teat AND had productive employment elsewhere?

 

It is pretty substanstial when you think about it. I did not downarrow you. But I like you to be thinking in those terms too. You are pretty cool and most of the time are spot on.

Mon, 09/30/2013 - 19:28 | Link to Comment Parrotile
Parrotile's picture

With workforce non-participation already at a very high level, wonder where they'd be getting their next employment? 800,000 is a LOT of people, and effective redeployment will be quite a headache. Wonder just how many have a skill-set regarded as useful in the Private Sector (rather than the "Connections" known to be very valuable in certain areas of the Private Sector!!)

Mon, 09/30/2013 - 19:13 | Link to Comment grunk
grunk's picture

See you on the other side, Ray.

Mon, 09/30/2013 - 19:15 | Link to Comment GeorgeHayduke
GeorgeHayduke's picture

I'd consider Congressional staff as non-essential. Same goes for congressional junkets.

I also like the part about the military being one of the last groups to get cut. They know they need to pay their mercenaries so they don't turn on them.

Mon, 09/30/2013 - 19:34 | Link to Comment cougar_w
cougar_w's picture

You could cut funding for 100% of congressional junkets and not even save enough money to show up outside of a rounding error.

Think big. Really big. Think of losing 200 milliion in the US alone to starvation and war over the course of a year, and you will have thought it nearly through.

The problem is beyond human scale. It is now on the scale of the entire species. Nobody -- not you or anyone else -- can imagine what is now required. I can imagine it in a nightmare just fine, and any time I come close it makes my blood run cold.

Mon, 09/30/2013 - 19:41 | Link to Comment Parrotile
Parrotile's picture

Everything only seems to run smoothly because of all the interconnected support systems, most invisible, many unthinkable to those outside the system. Any major disruption can, and historically usually does, cause problems on a greater scale than "could have been reasonably foreseen" since the prediction systems are unable to reliably model intrinsically random events (a good example is weather forecasting much beyond 3 days).

So any "prediction" would be more of a guesstimate, flavoured with one's own observational biases http://www.wisegeek.com/what-is-a-cascading-failure.htm 

The consequences of a major disruption will have their "own" daughter consequences, and Sod's Law seems to suggest that such consequences will be detrimental rather than beneficial.

"Feeling lucky, Punk!?"

Mon, 09/30/2013 - 19:47 | Link to Comment cougar_w
cougar_w's picture

It holds together -- until it doesn't -- and then it instantly all goes to pieces at once.

Mon, 09/30/2013 - 19:53 | Link to Comment GeorgeHayduke
GeorgeHayduke's picture

Quite true. I was just being a smartass.

I believe we're in a spot where none of our current "leadership" has the intention or ability to fix things, and that statement in itself assumes that this mess is fixable. Whenever I hear anyone utter statements like we need to get the economy back its normal state (as if we have a clue what that is) I realize that this whole thing is beyond our abilities to understand.

I do believe James Howard Kunstler best describes the future when he uses the word "contraction". This word as applied to the economy is incomprehensible to most folks. Nobody mentions it or thinks about it or considers it. However, contraction may be the new reality.

Like you, I believe the word nightmare will apply as we go forward, especially in a country full of people who consider themselves exceptional, deserving and who are armed to the teeth. Regardless, there's a new reality awaiting us on the other side of this "reset" and the path there could be filled with many nightmares. We will see.

Mon, 09/30/2013 - 20:04 | Link to Comment cougar_w
cougar_w's picture

Yup, nobody has a clue what to do. I read here the rumors that all this is a setup for One World government, but then I look at the scope of the coming implosion and I laugh.

Folks, we'll be lucky to have one government left anywhere in the world when this goes critical.

I am reminded of a YouTube video I watched once. There are many similar ones, where someone has a big motor on an engine stand hooked up to a radiator and they are revving the piss out of it. Turbos screaming and glowing yellow, exhaust fire out of the pipes, everything a blur. Very exciting. And then quite suddenly it blows the shit up. Head flies off in one direction, cams in another, oil pan blows out the bottom with fire everywhere.

Off camera there is always someone says "oops."

Yeah okay I get that part. Not what you were expecting at all. Oops.

We're all about to witness that moment, on a global scale.

Mon, 09/30/2013 - 20:39 | Link to Comment Parrotile
Parrotile's picture

Just look at the number and magnitude of accidents in major Industries during our present "stable" times, where mobilisation of disaster management resources is effective and rapid.

In particular, consider the Global "safety track record" of the Chemical, Petrochemical, Nuclear, Vehicle, and Mass Transit (especially rail) industries.

Consider just how much "potential death" is currently moving on rail / highways right now (USA and Globally).

Consider the cascade effects of SCADA failure, e.g. as a result of a Carrington Event.

Now take away the "Timely and Effective" response component, and try to predict the outcome of an event along the lines of Chernobyl / Three Mile Island; Seveso / Bhopal, or any of the recent major passenger and freight train derailments.

This is why out "long term investment" is ensuring our "floating home" is in as seaworthy condition as we can reasonably afford, with the resources to meet as many adverse effects as we may reasonably predict.

Mon, 09/30/2013 - 21:33 | Link to Comment Real Estate Geek
Real Estate Geek's picture

_ "And then quite suddenly it blows the shit up."

Kinda like when the black swan flew into this jet engine.

http://www.youtube.com/watch?v=JPX8w0FFaEA

 

Mon, 09/30/2013 - 20:56 | Link to Comment Tall Tom
Tall Tom's picture

The USA has made a lot of mistakes. Think about the NON ESSENTIAL EMPLOYEES being furloughed. If they are not essential then why were they hired in the first place? Does the Government not understand to which they are admitting when they make statements as these?

 

It is even worse. If they "earn" 2% of the Government Budget every year then they have drained 4% GDP every year as the Government produces NOTHING. WE have done that for Forty Years now? Is it any wonder why the Government is insolvent? No corporation can sustain that type of inefficiency for that amount of time. They will go BANKRUPT. Our Government is not immune.

 

So what the Government did was use the Printing Press to obfuscate the internal inefficiencies. Is it any surprise that the USA is ...what...$70 Trillion in debt when Unfunded Liabilities are considered under GAAP (Generally Accepted Accounting Principles...mandated for use by the Government for Private Firms but the Government can ignore them at its bidding?) rules?

 

Isn't creative accounting or financing considered FRAUD by the Criminal Courts in the USA?

 

Gee...I am just so "confused".

Mon, 09/30/2013 - 19:15 | Link to Comment NoWayJose
NoWayJose's picture

China is not going to liquidate its US treasuries until almost the end game. If they hold their treasuries they hold onto their leverage over US policy. You won't see the US backing Japan's claim to the disputed islands. And you won't see China branded as a currency manipulator either. Once China dumps treasuries, it loses that leverage.

Mon, 09/30/2013 - 20:59 | Link to Comment Tall Tom
Tall Tom's picture

We are playing out the End Game currently. It will not be announced but anyone with eyes can see it. So open your eyes.

Mon, 09/30/2013 - 19:19 | Link to Comment Constitutional ...
Constitutional Republic's picture

Collapse the USD as a reserve currency. It has only served the purposes of the foreign global banking elite based in Europe and Britain, and it has impoverished Americans of every creed, color and religion. 

Burn it down, the sooner the better, so the USA can return to the Constitutional Republic, stolen from it with the founding of the un-Federal no-Reserve Board in 1913 when a Rothschild agent blackmailed President Wilson into assigning their cabal the issue of U.S. currency, and ended all independent political action in the USA, according to Wilson's own written lament; his own words.

And then if you want a peaceful way to resist the globalist thugs, support this:

http://www.wnd.com/2013/09/truckers-roar-to-d-c-with-impeachment-movement/

Buy what you want before Oct 11, and then buy nothing for 3 days. A peaceful protest. This is the way of those who believe in the Constitution, our pre-eminent law.

 

Mon, 09/30/2013 - 23:18 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

I don't believe it will be an item put up for vote.

Mon, 09/30/2013 - 19:20 | Link to Comment cougar_w
cougar_w's picture

Shutdown is theater, nothing more. Enough to scare the timid middle-class into giving up some more ground to the oligarchy. If things do get ugly TPTB will use any unrest to strengthen the police state, then right back where they were spending money nobody has and cramming their blood-funnel into everyone and everything that smells like money.

None of this will end with a pitiful shutdown. Fuck no. Anyone thinks they will ever see the day it all ends in a shutdown is delusional.

Here, try this on for size instead:

It will end with absolute utter complete ruin. Ruin that will come so fast and with so little warning that all our heads will explode. Every American city large and small will fall into chaos and catch fire so that the night sky will glow from one horizon to the next with the flames of ruin. Ruin will drive people into the streets in a combination of fear and opportunistic rage. Nothing we recognize now will endure. Nothing not even neighborhoods. Americans will start over in an urban wilderness struggling to rediscover basic community-building skills they lost two generations ago. Surviving without acute medical care, 60oz soft drinks, recreational drugs, fresh water, happy motoring, HDTV, wifi or any of 1.3 million other things they thought they could not live without.

I don't know when ruin will visit us. I don't know what will trigger it. But ruin is out there circling like a shark on a dark sea, and we are going into that water the moment this ship sinks. The ship that we used to call America. 

Mon, 09/30/2013 - 19:21 | Link to Comment Constitutional ...
Constitutional Republic's picture

Nihilist. See my earlier comment. Support the truckers for the Constitution, a peaceful mass protest.

Mon, 09/30/2013 - 19:27 | Link to Comment cougar_w
cougar_w's picture

You clearly have no concept of the scale of this looming disaster.

The greatest shortcoming of the human race is our inability to understand the exponential function.”

Mon, 09/30/2013 - 19:39 | Link to Comment Constitutional ...
Constitutional Republic's picture

Actually, I do. My family came to the USA in the 1600s. We were originally dismissed as separatists.

Prepare to defend yourself. We will do likewise. Best wishes to you and yours.

Mon, 09/30/2013 - 19:41 | Link to Comment cougar_w
cougar_w's picture

You do not get the scale of this or you would not be so careless.

There is no practical defense possible going forward.

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