This page has been archived and commenting is disabled.

5 Complete Lies About America's New $18 Trillion Debt Level

Tyler Durden's picture




 

Submitted by Simon Black via Sovereign Man blog,

On October 22, 1981, the government of the United States of America accumulated an astounding $1 TRILLION in debt.

At that point, it had taken the country 74,984 days (more than 205 years) to accumulate its first trillion in debt.

It would take less than five years to accumulate its second trillion.

And as the US government just hit $18 trillion in debt on Friday afternoon, it has taken a measly 403 days to accumulate its most recent trillion.

There’s so much misinformation and propaganda about this; let’s examine some of the biggest lies out there about the US debt:

1) “They can get it under control.”

What a massive lie. Politicians have been saying for decades that they’re going to cut spending and get the debt under control.

FACT: The last time the US debt actually decreased from one fiscal year to the next was back in 1957 during the EISENHOWER administration.

FACT: For the last several years, the US government has been spending roughly 90% of its ENTIRE tax revenue just to pay for mandatory entitlement programs and interest on the debt.

This leaves almost nothing for practically everything else we think of as government.

2) “The debt doesn’t matter because we owe it to ourselves.”

This is probably the biggest lie of all. Two of the Social Security trust funds alone (OASI and DI) own $2.72 trillion of US debt.

The federal government owes this money to current and future beneficiaries of those trust funds, i.e. EVERY SINGLE US CITIZEN ALIVE.

I fail to see the silver lining here. How is it somehow ‘better’ if the government defaults on its citizens as opposed to, say, banks?

3) “They can always ‘selectively default’ on the debt”

Another lie. People think that the US government can pick and choose who it pays.

They could make a bing stink about China, for example, and then choose to default on the $2 trillion in debt that’s owed to the Chinese.

Nice try. But this would rock global financial markets and destroy whatever tiny shred of credibility the US still has.

Others have suggested that the government could selectively default on the Federal Reserve (which owns $2.46 trillion of US debt).

Again, possible. But given that the Fed (the issuer of the US dollar) would become immediately insolvent, the resulting currency crisis would be completely disastrous.

4) “It’s the NET debt that’s important”

Analysts often pay attention to a country’s “net debt” instead of its gross debt. If you have a million bucks in debt, and a million bucks in cash, then your ‘net debt’ is zero. It washes out.

Problem is, the US government doesn’t have any cash. The Treasury Department opened its business day on Friday morning with just $71.9 billion in cash, or just 0.39% of its total debt level.

Apple has more money than that.

5) “They can fix it by raising taxes”

No they can’t. Just look at the numbers. Since the end of World War II, US government tax revenue has consistently been roughly 17% of GDP.

They can raise tax rates, but it doesn’t move the needle in terms of revenue as a percentage of GDP.

In other words, the government’s ‘slice of the pie’ is pretty consistent.

You’d think with this obvious data that, rather than try to increase tax rates (ineffective), they’d do everything they can to help make a bigger pie.

Or better yet, just leave everyone the hell alone so we’re free to bake as much as we can.

But no. They have to regulate every aspect of people’s existence: How you are allowed to educate your children. What you can/cannot put in your body. How much interest you are entitled to receive on your savings.

All of this costs time, money, and efficiency. So do never-ending wars. The bombs. The drones. The airstrikes.

This isn’t about any single person or President. The problem is with the system itself.

History shows that every leading superpower from the past almost invariably fell to the same fate.

Great powers often feel that their wealth and success entitles them to spend recklessly and wage endless, arrogant wars. The Romans. The Ottoman Empire. The British.

History may not repeat but it certainly rhymes. And the lesson here is very clear: debt weakens a nation. It weakens a society.

Generations that will not even be born for decades will inherit these debts by complete accident of birth.

And the people in charge of the system have backed themselves into a corner where there is no way out other than to default– either on their creditors (creating a global financial crisis), the central bank (creating a currency crisis), or on the citizens themselves (creating an epic social crisis).

Bottom line: this is not a consequence-free environment. And while you can’t fix the debt problem, you can certainly reduce your own exposure to what happens next.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 12/02/2014 - 18:44 | 5510574 joego1
joego1's picture

"Just truth, justice, and a free global way"

That just might happen at some point down the road after the world sheds a couple of billion people.

Tue, 12/02/2014 - 23:31 | 5511360 Government need...
Government needs you to pay taxes's picture

When Satan's tide comes to greet you, send it straight to hell.

Thu, 12/04/2014 - 22:09 | 5518831 TeethVillage88s
TeethVillage88s's picture

Let's Hope US Citizens/Voters are better with Pitchforks and Guillotines that most Nations.

Look Debt controls many aspects of Human Life. There is much Utility in having Debt. Remember the Company Store? Workers can't leave and can't get out of the Debt. They believe they have to work their way out of Debt. The Company Store.

What Else grows out of the the Company Store?

- No Wistleblowers
- No Free Press
- No Investigations of Federal Power or Federal Government
- No Expose's on US TBTF Banks or Wall Street or US Financial Schemes... Enron, Madoff, Stanford, Peregrine Fund, Corzine... Citibank Merger with Travelers, Repeal of Glass-Steagal

Simple Idea, Company Store with Worker Debt to control workers... Today Free Trade, Open Borders, Out Sourcing, Off Shoring, Debt Based Economics... and the Banks/Creditors Win Big Time.

Tue, 12/02/2014 - 18:13 | 5510467 SickDollar
SickDollar's picture

about the lies:

That phone call I got, it came from outside high walls and fancy gates; it comes from a place you know about maybe from the movies. But I come from out there, and everybody out there knows, everybody lies: cops lie, newspapers lie, parents lie. The one thing you can count on - word on the street... yeah, that's solid.

 

 

 

..... and the word onthe street is WE are fucked

Tue, 12/02/2014 - 18:14 | 5510469 Prober
Prober's picture

If most of the highly-developed countries were in good financial & economic condition and the USA were the only loser, then the huge USA debt would be a big problem, BUT since every country is in the debt toilet together, it is very much less of a problem because money cannot flow out of the USA to any haven that is better.

Ironically, the decrepit & dieing USA is still going to be regarded as the safest haven in the world of decrepit & dieing countries.

This situation of rising debt, rising cost of living, increasing taxes, decline of quality of life & infrastructure, etc, etc will continue for many, many years unless there is a very large external shock (war, natural disaster, etc) that causes abrupt change.

Just study the history of all the great empires, eg Rome, Persia, Byzantium, etc and you will see that unless & until they are conquered, they just rot, and rot, and rot, and rot - just as the USA has been doing for decades and will continue to do for decades more.

Tue, 12/02/2014 - 18:51 | 5510602 froze25
froze25's picture

I think the disaster you are looking for is the Carrington Event.  When the Sun shoots a cosmic ray out that frys the electronics around the Globe.  Sure they have the backup tapes in that Iron Mountain place but that won't matter because Society will be so far gone that the Debts will be wiped and all record of ownership if anyone even cares at that point will be based on posession and to a small degree physical paperwork.  The free shit army will go into full Retard mode and mostly kill them selves off trying to do what they call "survive".  After a few months the starvation will take care of the free loaders and who ever is still standing will either have a new era of prosperity or another dark age till the next society comes up.

Tue, 12/02/2014 - 18:18 | 5510487 prymythirdeye
prymythirdeye's picture

It's all just numbers on a computer screen; big, scary numbers that mean nothing.  It can be wiped away in an instant, a simple keystroke is all it takes.  Not my concern - I didn't rack up that "debt."

Tue, 12/02/2014 - 18:22 | 5510506 FreeNewEnergy
FreeNewEnergy's picture

Control-P Janet will save the day. You'll see. And I'll bet a $50 steak on it (coming to a restaurant near you in oh, maybe 2018).

Tue, 12/02/2014 - 18:30 | 5510528 kchrisc
kchrisc's picture

"FACT: For the last several years, the US government has been spending roughly 90% of its ENTIRE tax revenue just to pay for mandatory entitlement programs and interest on the debt."

It is actually over 100%, but then tomato, "tomaato."

A friend of a friend at dinner the other night mentioned Ferguson. Though ignorant of the real situation in many ways, he did mention, or ask, "I don't understand why the cops can't just leave them alone." Meaning leave the black communities alone.

I told him that it was for the same reason that the gun and badge thugs are more and more targeting the white communities--plunder.

I went on to reminded him of his earlier comment that "over 100% of the US' revenues go to non-discretionary budget items." And then I asked him, "Where else are the criminals of governmnet going to get additional revenues if they can't raise taxes?"

I got nothing but the "OODA loop" eye blinking thing of confusion.

The answer: From our hides.

Even those reasonably informed cannot even begin to imagine the true nature of the horror that we are caught up in.

An American, not US subject.

 

Tue, 12/02/2014 - 19:31 | 5510720 TeethVillage88s
TeethVillage88s's picture

Even those Internal to the Federal Government and informed through their jobs will give me the blank stare when you break up the cadence of their "Meme" or Talking Point.

Yes, it is at least 90%.

I wrote something last week about Ferguson on ZH and got a strange down vote... seemingly for saying I had to go hunt for video to verify there are still good activists and a separate group of thug criminals. #@%&@ Anyway people are less inhibited at night in the Darkness... and more likely to participate when agents provoke arson, violence, and looting.

Federal Government under the Executive Office since 2001 has been:
1) Militarizing the State & Local Police
2) Weaponizing Police Forces
3) Coloring Crime to Tilt the Field
4) Promoting its Policies, Staffing, Budgets in order to Justify them through charges and entrapment in Terrorism
5) Has Curtailed Free Speech, FOIA Requests, Created Hyper Secret Government network that includes Corporate Proxies, and curtailed Human Rights within the USA while undercutting American Democratic Ideals
6) Has Aided in Destruction in US Industry, US Investment, US Jobs, Abetted Fraud, and destroyed the "State of Justice"

Executive Office is Responsible for Propaganda Campaign to incite Violence & Crime in Ferguson... and keep the Truth from the US People.

Tue, 12/02/2014 - 18:36 | 5510543 withglee
withglee's picture

Back when Dirkson said "a billion here and a billion there ... pretty soon you're talking real money" they hadn't even invented the word "trillion"! (middle sixties).

Tue, 12/02/2014 - 19:14 | 5510549 Dre4dwolf
Dre4dwolf's picture

The Fed can not become insolvent.

Its impossible.

It issues the currency out of nothing.

Does not have to be audited.

Does not have any oversight.

Does not have to be accountable to anyone.

It can fabricate whatever currency digits it needs to make up any perceived short-fall.

In order for the Fed to become insolvent, it would need to burn through (steal) and sell all American assets (land plant equipment and labor) of the entire country and sell it to foreigners and still be in-debt.

So what is America worth????? 

The goal of Central Banks is to PIMP OUT the population of a given territory (tax farm/wealth farm) to the owners of the central bank and whoever is paying.... the citizens are the prostitutes and the central / commercial banks are the pimps.

This is why central banks hold gold, because at the end of the day he who has the gold makes the rules and the central bank without gold has nothing left to sell but the peoples sovereignty.

 

The real issue is, that when the fed does this it is stealing value from all the savings of Americans.

So inflationary debt scooper uppering is essentially a bail in with deposits but instead of people seeing a 60% decreased nominal value of their deposits, they will see a 60% decrease in the purchasing power of their deposits.

 

This is how central banks and commercial banks counterfeit and steal the wealth of Americans. . . . they print credit out of thin air, loan it out, make sure the borrowers default (because its a mathematical certainty that a fixed % of borrowers will default )(since there is never enough money in circulation for ALL the borrowers to make their monthly payments). . . . and banks endup with ASSETS and Citizens endup with worthless paper that banks can counterfeit at the drop of a hat.

 

This is what the system is.

Accept it and change it or move on and shut up while the banks shove this massive )($*)*() up your @$$.

 

Wake the &*&(*) up America the clock is tick tock tick tocking away.

 

This year alone we should see at the very least a 5~9% decrease in purchasing power of dollars on deposit (bank credit since depsits are not really FRN'S or Dollars ...) atm Deposit credits are very OVER-VALUED... Deposits are in a bubble and paper cash is very under-valued.

 

M0 Supply is grossly under valued as an Asset and M1 M2 M3 etc are very over-valued 

M1~3 is pretty much the "countefeit money banks create out of nothing to do their frauduant activities with"

M0 is Actualy tender that physically exists and is "countable"/transactable in the sense if a black-out happened, this stuff still exists.

 

So this is my scale:

M0 <--- This is where you want to be.

M1~3 <--- This is where "they" can rob you easily, stay out of here

Gold <--- This is risky and fun and cool

Silver<--- This is even more risky and more fun and more cool

Guns<------Winning

Lima Beans <---------Crazy

A good ratio of wealth distribution would probably be:

M0 (70%)

M1~3 (10%)

Gold (9%)

Silver (10%)

Guns (this goes without saying , without this your chances of keeping all your other shit drops dramatically)

Lima Beans (1%) mmm lima beans.

 

Evidence that M0 is under valued relative to M1 M2 M3

http://s29.postimg.org/ksi7u9pbr/Untitled.png

(woops sorry thats the Euro chart), o well same principles apply. . . lazy to find appropriat USD charts

Tue, 12/02/2014 - 19:15 | 5510678 cornflakesdisease
cornflakesdisease's picture

The dollar will collapse as soon as we run out of zeros.  Additionally, we haven't even monitized the Grand Canyon . . . .  yet.

Tue, 12/02/2014 - 18:39 | 5510560 themarketflash
themarketflash's picture

I disagree with Tyler's comment on wiping out the debt the Treasury owes to the Federal Reserve.  Many serious economists, I think including Milton Friedman, have suggested that.  I think Friedman used to say that Treasury debt held by the Fed is paid for by past inflation.  The Fed balance sheet is irrelevant.  No private party is harmed if the Fed loses assets or has to mark to market.   It needs income to pay it's employees but that is all and that could be preserved.  But the Fed is only 2.5 trillion out of 17, so the rest of Tyler's statements are true and well stated.  To me it's amazing it's gone on so long with no bad effects: high inflation, the dollar plunging against other currencies, high interest rates.

Tue, 12/02/2014 - 22:12 | 5511118 usednabused
usednabused's picture

What income to pay for employees? Id suggest that if any seek funding chop their fcking head off

Wed, 12/03/2014 - 07:30 | 5511787 Refuse-Resist
Refuse-Resist's picture

Ah semantics.

 

You say "seek funding".  I say 'fucking stealing".

 

Upvote for you Sir.

Tue, 12/02/2014 - 18:40 | 5510561 Duc888
Duc888's picture

 

 

 

I always loved how "a cut in spending" (of taxpayers monies) is a cute in the rate of INCREASE..

 

Phuck gov.  Run it like a business assholes.

 

Tue, 12/02/2014 - 18:43 | 5510573 yogibear
yogibear's picture

Zimbabwe  economics baby!

Lie all the way to a currency crisis.

Tue, 12/02/2014 - 20:28 | 5510802 e_goldstein
e_goldstein's picture

When Mr. Yellen prays, she kneels in front of an idol of Gideon Gono.

Tue, 12/02/2014 - 18:49 | 5510593 Armed Resistance
Armed Resistance's picture

The simple answer is to Burn the Fed Down.  Central Banking was and is the root of all of the free world's problems.  Without fiat, they can't Ponzi and can't buy the politicians, corporations, unions, and the needy.  Burn it to the ground!

Tue, 12/02/2014 - 18:51 | 5510596 Vuke
Vuke's picture

The massive debt soon won't matter at all.  Other countries are exiting the USD monoploly game as fast as they can find trading partners.  The BRIC GDP, supposedly, is now greater than the entire G20 GDP.  At some point players trying to cash in their monopoly money it will hardly buy an ice cream cone.

Tue, 12/02/2014 - 19:13 | 5510669 grekko
grekko's picture

Snake Plissken: I shut down the third world, you win they lose. I shut down America, they win, you lose. The more things change, the more they stay the same.

Tue, 12/02/2014 - 19:20 | 5510683 Vuke
Tue, 12/02/2014 - 18:52 | 5510600 chomu
chomu's picture

1. Redistribution of wealth 

2. Haircuts on all existing cusips

3. Austerity 

4. Endless QE

 

That should get us out of the bind kids

Tue, 12/02/2014 - 18:53 | 5510601 B.J. Worthy
B.J. Worthy's picture

If you had spent one million dollars every day from the birth of Christ until today, you still wouldn't have spent one billion dollars.

Tue, 12/02/2014 - 18:58 | 5510616 FredFlintstone
FredFlintstone's picture

Check your math

Tue, 12/02/2014 - 18:59 | 5510627 B.J. Worthy
B.J. Worthy's picture

Trillion, sorry.

Does that error of magnitude qualify me to work at the Fed?

Tue, 12/02/2014 - 19:07 | 5510652 grekko
grekko's picture

Absolutely, or the Treasury, OMB, BLS, or any of the dot gov agencies.

Tue, 12/02/2014 - 21:26 | 5510997 Kprime
Kprime's picture

if you were da prez you could issue an executive order making billion equal to trillion

Tue, 12/02/2014 - 19:00 | 5510623 prymythirdeye
prymythirdeye's picture

Please tell me you upvoted yourself.

Tue, 12/02/2014 - 19:04 | 5510637 f16hoser
f16hoser's picture

Gold, Silver Bullion and some really big guns with 30+ Round Mags BITCHEZ!

Tue, 12/02/2014 - 19:07 | 5510645 Everybodys All ...
Everybodys All American's picture

And they can't shut down the government. No. Can't do that. Need to keep spending. Wtf has come of the common sense of the people we elect. I'd shut that fucking government down and it would be over for the next two years for that Marxist asshole president and I could give a fuck what anyone on CNN or MSNBC said from here to eternity.

Tue, 12/02/2014 - 20:36 | 5510861 optimator
optimator's picture

The last time they shut down the government they had to open it again quickly as no one noticed any effect from no government.

Wed, 12/03/2014 - 11:36 | 5512498 Meat Hammer
Meat Hammer's picture

optimator...+1

Tue, 12/02/2014 - 19:08 | 5510657 MedTechEntrepreneur
MedTechEntrepreneur's picture

Paging Lee Greenwood!  Paging Lee Greenwood!  Maybe we please have an encore presentation?

 And I'm proud to be an American,where at least I know I'm free.

And I wont forget the men who died,who gave that right to me.

So this is freedom? A slave to the Federal Leviathan?   That is what our men died for?

 

Tue, 12/02/2014 - 19:13 | 5510672 grekko
grekko's picture

Malloy: This is your last chance, hotshot.

Snake Plissken: For what?

Malloy: Freedom.

Snake Plissken: In America? That died a long time ago

Tue, 12/02/2014 - 19:20 | 5510688 optimator
optimator's picture

6   They could eliminate the largest part of the debt in a few days;

 

Nationalise the Banks, confiscate Bankster ill-gotten gains and hidden and open wealth.  Cancel the Federal Reserve Mandate.  And Last but not least give every Congressman and Senator five hundred in cash, no tax, for every billion bucks they cut off the budget.

 

Tue, 12/02/2014 - 20:35 | 5510856 Kelley
Kelley's picture

You last idea sounds like a winner!! Love it!

Tue, 12/02/2014 - 21:25 | 5510995 IridiumRebel
IridiumRebel's picture

well we can't have that that sounds like a solution

Wed, 12/03/2014 - 01:59 | 5511595 Ahoy Polloi
Ahoy Polloi's picture

Not so fast! The law of unintended consequences would cause an inflationary spiral in the cost of hookers & blow.

Tue, 12/02/2014 - 19:32 | 5510722 mcsean2163
mcsean2163's picture

Just print money to pay the debt.  Isn't thathat what central banks ar for?  Dollar worth 50% less, debt gone.

Tue, 12/02/2014 - 19:39 | 5510739 Atomizer
Atomizer's picture

Obama is hoping the free money scam will keep his slaves from running off the plantation.

Tue, 12/02/2014 - 19:51 | 5510763 IronForge
IronForge's picture

Can someone give us a holler whenever Entitlements and Interest of Debt breaks yet another Percentage Point of GOVT_US Expenditure?

I want to make sure that I'm not not taking on any projects in the USA when we get to 100%
Thanks!!!

Tue, 12/02/2014 - 19:57 | 5510771 Smiley
Smiley's picture

Whatever else happens; do not talk about the putrid vomit covered 800lb drunken shit-sack sitting in the corner known as fractional reserve banking.  Keep blaming paid whipping boys instead; that's what they are there for.

Tue, 12/02/2014 - 20:01 | 5510781 NoWayJose
NoWayJose's picture

Romans, Ottomans, and British - history has good examples - but while the British Empire contracted it is still in existence. We will not default (because we can print money), and we cannot fail to pay entitlements, so the only choices are to hyperinflate a single currency (this usually fails to fix the problem) -- or to introduce a new currency and claim that the new currency is 'worth more' than the old currency - but that the old debts will be paid in the old currency.

Tue, 12/02/2014 - 20:17 | 5510805 p00k1e
p00k1e's picture

Reagan’s main man, Leo Emil Wanta.  

Tue, 12/02/2014 - 23:05 | 5511298 Atomizer
Atomizer's picture

That's a name I haven't heard in a long time. Mr. Wanta.

 

 

 

Tue, 12/02/2014 - 20:27 | 5510832 mendigo
mendigo's picture

Strangely, the writer left out the only feasible answer which is currently underway - monetize the debt. But do it in a gradual manner that makes the rich super-rich and the middle-class sink in a way that they dont notice. In conjunction may need to tighten up security and reign in those pesky protections an stock up on ammo and some nazi like false flags. There are many weapons. They will only loose when a stronger oligargy can organize the serfs to good effect.

Tue, 12/02/2014 - 20:30 | 5510836 breadonwaters
breadonwaters's picture

So, anyone out there has read "NESARA..The National Economic Stabilization And Recvery Act".  I just read 55 of its 88 pages.  Got the link off of ZH but can't remember where (after 55 pages) ....at least an attempt to forulate aplan to clean this mess up.

Wed, 12/03/2014 - 00:42 | 5511497 TheReplacement
TheReplacement's picture

How about enforce the laws on the books.  That would be a start.  If we cannot do that then reform this, reform that won't work... without a lot of violence.

Tue, 12/02/2014 - 20:33 | 5510845 p00k1e
p00k1e's picture

Realistically, we must kick-off the euthanasia programs for the non-producing debt ‘we owe ourselves’.

We pull the navy away from the Indian Ocean and let the pirates rampage for a year or two.   

They’ll see.  They’ll all be sorry then. 

Tue, 12/02/2014 - 20:39 | 5510873 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

 ...."this would destroy whatever tiny shred of credibility that the US still has".

CORRECTION: The US has no credibility whatsoever and not even a

'tiny shred' of credibility can be found anywhere in all 51 States of the Union.

 

there, fixed it.

Tue, 12/02/2014 - 21:01 | 5510934 Bohm Squad
Bohm Squad's picture

Just to clarify, I have it on good authority there are 57 States in the Union...

Tue, 12/02/2014 - 21:15 | 5510977 IridiumRebel
IridiumRebel's picture

great minds think alike

Wed, 12/03/2014 - 20:54 | 5514985 Cruel Aid
Cruel Aid's picture

its 57 muslim states, that is the mistake that was off teleprompter

Tue, 12/02/2014 - 21:11 | 5510967 IridiumRebel
IridiumRebel's picture

you mean 57 States

Tue, 12/02/2014 - 21:38 | 5511026 gonetogalt
gonetogalt's picture

"all 57 states of the Union,"

There, fixed it for you.

Tue, 12/02/2014 - 21:02 | 5510874 NubianSundance
NubianSundance's picture

The grapes of Rothschild.

Tue, 12/02/2014 - 20:50 | 5510899 Shitgum Suicide
Shitgum Suicide's picture

I actually got this name. For some reason I thought it would be banned but I got it. At the very least I thought some other hedger would've scooped it up. Please don't be jelly.

Oh yeah and we're totally fucked.

The peasant waits as the master baits.

Tue, 12/02/2014 - 21:05 | 5510950 NOTfromSanFrancisco
NOTfromSanFrancisco's picture

 

 

If we (the U.S.) had taken the last 4 trillion $ of debt and distributed it evenly to 200 million working citizens instead of giving it to the banksters, it would have come out to $20,000 per person. This could have been the result.

Those who were behind on any loans or debts could have gotten caught up. Good for borrowers and good for lenders.

Those who didn't really need the cash could have deposited it in the bank or invested it in the stock/bond market. Bank reserves would have been increased... Good for banks. Stock market would have gone up... Good for markets.

Those who needed to repair their homes or vehicles would have gotten a lot of stuff fixed. Good for workers and home owners, not to mention certain retailers.

Those who needed a new car could have bought one. Good for car dealers, good for service centers and good for workers.

Those who needed a little extra money to have that down payment for a home, could then have gotten into that home. Good for home buyers, good for real estate sales.

Those who wanted to travel but never got the chance might now be able to take the vacation of a lifetime. Good for the economy, the restaurant industry, the hospitality industry, the airline companies and good for the soul.

And on and on it goes. Consumers would have perhaps driven a recovery.

In a somewhat imperfect world these things could have happened to help 99% of the population in the U.S., and even the 1%ers would have gotten a share of the pie.

Speaking of pie, I know this is pie-in-the-sky thinking, but it would have been better that what has resulted thus far and what will result in the near future.

(And I didn't even include all the I-crap that $20,000 could buy!)

 

Yes MLK, I had a dream too... Then I woke up...

Tue, 12/02/2014 - 21:13 | 5510969 Izznogood
Izznogood's picture

Inflation duh!

Wed, 12/03/2014 - 00:45 | 5511504 TheReplacement
TheReplacement's picture

They have been inflating the whole time anyway.  The only difference is that 66% get some benefit instead of .01% getting all of the benefit.  Inflation is bad but if you are going to do it, do it from the bottom up.

Tue, 12/02/2014 - 21:49 | 5511054 TeethVillage88s
TeethVillage88s's picture

This was a key point I was thinking in 2008-2009, that we could bail out the citizens and not the banks.

Very fitting Remark and very fitting to this article now.

Tue, 12/02/2014 - 21:10 | 5510962 muleskinner
muleskinner's picture

Just have 36 lottos with each one paying one trillion dollars for the winner.  Half of the winnings go to the winner, half goes to pay off the debt.  Have one drawing per day, have a guaranteed winner, congressional mandate, even, do it for 36 days in a row, voila, you pay off the debt with lotto winnings.

The US gov is debt free, you will have 36 new billionaires, there will be 18 trillion dollars of cash in the system in 36 days.

Print enough money so there can be at least 36 trillion dollars in lotto tickets sold.

The Lotto Mandate

Problem solved.

Tue, 12/02/2014 - 21:46 | 5511045 arby63
arby63's picture

But the math here is flexible right? Maybe 100 million have enough money to play for 36 days at 1000 per day, etc? How did you work your math? Just curious.

Wed, 12/03/2014 - 00:48 | 5511509 TheReplacement
TheReplacement's picture

He must work at the FedRes - thinks anyone can just print off what they need or want each day.

Wed, 12/03/2014 - 02:07 | 5511605 Ahoy Polloi
Ahoy Polloi's picture

As soon as the cops got wind of the idea, they'd stake themselves out at every convience store that sold the lottery tickets & shake down the peeps coming in with 1000 bucks

Tue, 12/02/2014 - 21:15 | 5510976 alexmark2013
alexmark2013's picture

Another compromise:

SESSIONS: House GOP On Verge Of Breaking Campaign Promises, Gutiérrez Presses ‘Millions’ To Get Documents Ready For Legal Status http://investmentwatchblog.com/sessions-house-gop-on-verge-of-breaking-campaign-promises-gutierrez-presses-millions-to-get-documents-ready-for-legal-status/
Tue, 12/02/2014 - 21:35 | 5511014 mpath
mpath's picture

The STI (Sentiment Timing Index) is showing some extreme bullish readings. 

http://www.sentimenttiming.com/free-sti-sentiment-timing-index/

 

Tue, 12/02/2014 - 21:54 | 5511067 p00k1e
p00k1e's picture

What?  Republicans promised they wouldn’t go along with Obama on legalizing the illegal ones, gee Republicans promised.
 

 

Suckers.  LOL

Wed, 12/03/2014 - 00:55 | 5511518 TheReplacement
TheReplacement's picture

Compromise?  I think that word does not mean what you think it does. 

Surrender.  I believe Boehner used the words "very serious violation of the Constitution" as he was promising not to shutdown the government over immigration funding meaning they indeed will fund Obama's plan. 

The deceit is so strong with this one that I cannot imagine anyone who voted cannot see the blatant betrayal.  It is like they don't even care about maintaining the fascade of opposition any longer. 

And yet, here we sit.

 

Tue, 12/02/2014 - 21:38 | 5511024 yrbmegr
yrbmegr's picture

Yes, well, it's too bad we had a president who ruined an annual budget surplus by cutting taxes 30% and going to war.

Tue, 12/02/2014 - 22:17 | 5511130 CaptOveur
CaptOveur's picture

Revenues certainly did not fall 30%...

http://www.whitehouse.gov/omb/budget/Historicals 

Tue, 12/02/2014 - 21:38 | 5511027 Bumbu Sauce
Bumbu Sauce's picture

It will be paid for by land aquisition and blood.

Tue, 12/02/2014 - 22:14 | 5511121 arby63
arby63's picture

It will not be paid for because when it comes right down to it, 75% of America is owned by some really ornery people with some really ornery neighbors. Well armed I might add.

So, short of an invading Army of some type, then the country will just fall into the abyss with borders guarded and not much else going on. Maybe some government cheese.

I have never seen things worse. Never. I have been around watching this economy since the mid-1970's and we are a wreck. There are pockets of vibrancy around but not enough to make up for the malaise.

Tue, 12/02/2014 - 21:47 | 5511048 p00k1e
p00k1e's picture

We are immersed in the lie.  We cannot think outside of the lie.  The debt isn’t the lie we are the lie.  

Interest rates will be at this level for the next 100 years or more.  Unless we self-destruct of course.

Tue, 12/02/2014 - 21:54 | 5511066 Karaio
Karaio's picture

Well, did "18", get away, get off the planet!

hehe

Tue, 12/02/2014 - 21:57 | 5511071 Matthew John
Matthew John's picture

Debt?  What debt?

Tue, 12/02/2014 - 22:06 | 5511094 AdvancingTime
AdvancingTime's picture

At one time a billion dollars was a lot of money and it still is. Most people that haven't given it much thought might not think so considering how modern media and politicians throw the "B" word around. On several occasions I have heard both Washington politicians and the news media accidentally confuse a billion dollars with its much smaller sister the million marker.

This drives me crazy. With a billion dollars being a thousand time larger this confusion is undefendable.  The article below is a primmer on the ugly math of our debt delving into how much it cost each and every American when the government spends a billion dollar.

http://brucewilds.blogspot.com/2014/10/an-ugly-math-primer-on-american-debt.html

Tue, 12/02/2014 - 22:18 | 5511136 TeethVillage88s
TeethVillage88s's picture

Good Post by Simon Black. He writes from my perspective it seems and I know he writes about living overseas as a strategy to "deal" with an out of Control, Corrupt, War Hungry, and Human Rights suppressing Government.

But he does miss the mark at the end of a long list of great points above. I like his style as I see it can be written as a list much the same as bullet points.

Moral Hazard here. You can't just say well we can only plan for the collapse of the USA... we can reduce our exposure. I don't buy that as a bottom line. The bottom line is our kids and us are on the hook for hard times, tough times, and hyper fees, taxes, or cost of living expenses... if you are over 55 years of age you already see this closing in on you.

TBL: is we have a corrupt government, FED, Banking, MIC, Conglomerate of Corporations, politicians, Lobbyists, and Elites... and the Country, USA Incorporated, is going down, even with all the expert gaming going on.

A) Your kids will pay, and will lose Standard of Living, and will see crime & Violence creep into their lives, as well as systemic debt in households, governments, and businesses
B) The old will suffer, losses may be prevented for a long time as other expenses in Social Programs & Government are cut while favoring private corporations and private contractors (normally we look for a grandfather clause in cut backs on benefits)
C) But the Corruption in Federal Budgets, In Federal Contracts, in Subsidies for Wealthy or Corporate insiders, Guarantees for special industries,... and all financing is mixed these days so any cut impacts a maximum amount of other corporations and entities, ... and the gift giving to Justices, Doctors of medicine, Congress... this will all continue... with out Sweeping Reforms... Sweeping Reforms are impossible without National Referendums in all States (prohibited by law)

Well Simon Black always reminds us of this. There is no Reform on the Horizon in the US System of Politics & Law. There is no stopping the Collapse, Crisis, Crash, Dollar Crash, Stock Market Crash... although we have the best gamers in the world.

TBL(2): Is we need Sweeping Systemic Reforms. Understand all the history, knowledge, and systems have existed for 40-50 years. We know what financial conflicts of interest look like. We know what a monopoly or Oligopolistic corporation look like, we know when Banks or corporations take subsidies and control the Federal government. It is not like we haven't lived this history, the question might be if we can protect our official government & court history....

The bottom Line is even if we move off shore we may have fees & increased taxes to pay... for the Continuing Resolutions... drunken sailors in Congress. So how to strategize for Sweeping Reforms in the USA.

Tue, 12/02/2014 - 22:50 | 5511253 ricky663
ricky663's picture

That's right.
We moved offshore, to Thailand, a couple years ago and the cost of living and lifestyle are great.
However, inflation is creeping in. A few examples: 1) the Electrical Authority just raised electricity rates, which are projected to increase ~35% over the next year or so; 2) gasoline prices have been stable for years (subsidized, I am sure), but they just increased them this month; 3) propane gas up ~20% in the last year. Not to mention food prices, which have been moving steadily up over the last few years.
The Finance Dept. just announced they will increase the VAT tax By ~1%, to 8% within the next year.
Inflation has definitely arrived, and is on the march here. Thanks to all of the CBs for exporting it by money printing!
You cannot seem to escape inflation by relocating offshore (unless you go off the grid, of course).

Tue, 12/02/2014 - 22:36 | 5511202 yogibear
yogibear's picture

A few months from now we'll be seeing the deficit going over $20 trillion. 

Eventually it matters 

It will never be paid back. Just printed away. That's why Bernanke's son is stacking up over $400,000.00 in debt. It's why Bernanke himself is borrowing everything whenever possible. 

All the Federal Reserve heads know what the plan is. It's to print away the debt.

The Fed's grand plan is to pay back debt with worthless US dollars.

Look at what the Fed does, not what they say. 

Wed, 12/03/2014 - 00:41 | 5511495 Moccasin
Moccasin's picture

Good points. The debt has become exponential in its growth and is impossible to pay back. It is time the nation face the facts, the nation should enter bankruptcy or we will live a charade based on fraud.

Wed, 12/03/2014 - 06:19 | 5511745 CHX
CHX's picture

Ahhm, the US IS LIVING a charade based on fraud. Other than all you say are valid points.

Wed, 12/03/2014 - 02:06 | 5511603 daedon
daedon's picture

At the current average growth 
of 9.2% since 1982, expect:

2015 19.63T
2016 21.44T
2017 23.41T
2018 25.57T
2019 27.92T
2020 30.49T 
...
2025 47.34T

Wed, 12/03/2014 - 04:00 | 5511679 Gold Eyed Cat
Gold Eyed Cat's picture

That's why Bernanke's son is stacking up over $400,000.00 in debt. It's why Bernanke himself is borrowing everything whenever possible.

That is very interesting Yogibear.

Hey, can someone please text or IM me when I should max out the MasterCard and AMEX to buy PMs and freeze dried food.  That would be great!  Thanks!

 

Tue, 12/02/2014 - 23:00 | 5511286 Thing1Thing2
Thing1Thing2's picture

The next few generations that lives in bondange to the world dept will say, "Ah fuc I can't believe you done this Uncle Sam". 

Tue, 12/02/2014 - 23:23 | 5511336 Son of Captain Nemo
Son of Captain Nemo's picture

Lie 6) Stan Fischer says that the drop in oil prices translates into more money in your "pocket"...

Lie 8) The American people will demand a war crimes and banker fraud tribunal which will result in the prosecution and death penalty for the management at Goldman Sachs, JPM, Bank of America, HSBC, Wells Fargo Citi and every member of Congress, the President of the United States, the DoD, Intelligence Community and DOJ Directorate(s)....

Lie 7) To the U.S. taxpayer... Keep telling yourself you're NOT FUCKED and that your ultimate dream of "justice" for Lie 8) willl "come true" before the next National election!

 

Wed, 12/03/2014 - 00:42 | 5511486 Moccasin
Moccasin's picture

I say fuck it. As a nation we "need" to take it on the chin, face the fact, the nation is bankrupt. I don't want my kids to be tax and debt slaves to the state, I advocate bankruptcy. I would like to be hopeful and think that we can build a better system and prevent the oligarch bastards from attaining power... it's probably a dream but the dystopian nightmare for the future generations is not something I can morally stand by and allow to happen. I can stand a hard reset, I would rather reorganize our society then let the future be run by the psychopathic parasites that run the show today. 

Wed, 12/03/2014 - 00:42 | 5511500 Yes_Questions
Yes_Questions's picture

 

 

I searched EXIST, you guys rock.

 

what exists and what does not matters most in evaluating any thing.

 

debt is a fucking cancer in the mind.  

 

 

Wed, 12/03/2014 - 00:56 | 5511519 Market Man
Market Man's picture

The solution is clear...the debt will be INFLATED away....this has been government strategy for several thousand years.

Wed, 12/03/2014 - 02:37 | 5511626 damicol
damicol's picture

LOL are you that simple.

 

 You cant inflate a debt away that.

What happens when inflation hits 10%,    Of course all te costs rise by 10 % so the govt prints 10 % more

 So the debt rises as fast as you inflate 

Zimbabwe,,  ask anyone there,,  sqtart to inflate the debt aw1ay and the demand side gros for more printing, or social insurrection.

 Who takes the hit otherwise,  Think you could effectively slash all benefits to the sheeple by 10 % just like that.

Then no need inflate , just slash benefits by 10 %

You know it wont work that way so what makes you think it will worl the other way.

It wont, deflation comes first as spending power drops, then the need to attempt to inflate as deflation effecively pimps up the bubble more

once you start inflation then it cannot stop

 

 End gane

 Ask Venezuela. Think you can solve Venezuela. You cant.

 

 Always an end game .. and each cycle gets shorter.

By 2020, would nned to print one trillion every 100 days and the next trillion 87 days later and the next  75 days after that .

 

Now think it make it that far

 

 

 

 

Wed, 12/03/2014 - 04:17 | 5511687 CHX
CHX's picture

Any amount of gold can cover any debt burden and any liability. But this will require a price for phyisical gold at least an order, if not orders of magnitude higher. 10k, 50k, 100k per once. Whatever is necessary... you could back the debt and the system at any point, which might be better than the only 2 alternatives (hyperinflation or deflationary implosion of the currency).

Wed, 12/03/2014 - 10:41 | 5512326 RabbitChow
RabbitChow's picture

What. Most people never think about is that when gold reprices to 50k or whatever per ounce, that pretty much says the dollar is worthless. Like the old weimar story about the bellhop who was tipped by a wealthy german businessman at a berlin hotel of a.1 ounce gold coin in 1920. By 1923 the bellhop could buy the hotel with that same coin. When the gold price increases, the purchasing power of gold increases,, and anything priced in dollar terms becomes much more affordable.

Wed, 12/03/2014 - 01:32 | 5511570 TeraByte
TeraByte's picture

Now you suckers claim indemnity for votes to subsequent governments, who promised, you were entitled to and it all was  for free.

Wed, 12/03/2014 - 01:36 | 5511577 The 22nd Prime
The 22nd Prime's picture

War. Depopulation. New debt. Rinse. Repeat. 

Wed, 12/03/2014 - 01:39 | 5511582 Shekels
Shekels's picture

Reduce the debt by selling off Alaska, California and Florida to the Chinese for the fiat dollars and physical gold they hold.

Wed, 12/03/2014 - 02:04 | 5511601 Oscar Mayer
Oscar Mayer's picture

How would selling Alaska, California and Florida to the Chinese for the few billion fiat dollars they may hold help anything?

Wed, 12/03/2014 - 02:29 | 5511619 viedoklis_lv
viedoklis_lv's picture

I like number 63:

Putin 63

Oil price going for 63 USD

RUB price for USD going for 63

:D

Wed, 12/03/2014 - 02:40 | 5511627 Grimaldus
Grimaldus's picture

This amount of debt is a willful and intentional crime off the charts in scale. A death penalty offense. A heinous crime against humanity and the entire FEDGOV is responsible for it. And progressives cheer for moar.

Grimaldus

 

Wed, 12/03/2014 - 02:58 | 5511641 Radical Marijuana
Radical Marijuana's picture

BASIC

FACTS

The USA has a debt slavery system that has automatically generated numbers which have become debt insanities, as explained in my comments on a previous article: US Debt Reaches $18 Trillion; Surges 70% In Obama's "Recovery"

While the 5 Lies above are correct, they grossly understate how serious the situation is! The consistent theme regarding the political economy is that the more you know, the worse it gets!

Wed, 12/03/2014 - 03:40 | 5511669 MEAN BUSINESS
MEAN BUSINESS's picture

"We know". 

"the more you know, the worse it gets!"

is AR5.

consistent WAR

NING!

Wed, 12/03/2014 - 03:07 | 5511642 Goldy Locks
Goldy Locks's picture

Governments spend as-if an Event was supposed to happen one day in the future, making all increasing imbalances irrelevant.

Let's imagine the above is true (and I'm  not saying it is). But if it is, what could it be ? Global war, EMP ...what  could be the "rinsing" factor ? And how can they be aware of it ?

 

Wed, 12/03/2014 - 05:08 | 5511722 headless blogger
headless blogger's picture

The U.S. takes your money and holds it for you, in a "social security trust". Because the government loves you and wants the best for you. The money sits there and never earns one cent of interest your entire life. Then you get old and need your money back. The government has already spent your money, but somehow a check shows up in your mailbox each month....an amount that can never meet the amount you you should get back if you had earned a decent "return" on your investment.

Then they make you feel guilty for taking the money. You are somehow a useless eater that dares to think you are 'entitled' to your money (with interest please).

In Oregon, your health plan might deny you medical coverage for expensive cancer treatments that could save your life.....But hey, don't fret, that same plan DOES provide coverage for Assisted Suicide:

http://youtu.be/g6ojBgTyA7I

Wed, 12/03/2014 - 05:28 | 5511723 zebrasquid
zebrasquid's picture

If you happen to think monetary inflation is coming shouldn't you take on all the fixed-rate debt you can, since you'll be able to pay it back with cheaper dollars? But only if you borrow to buy assets that generate income that floats with inflation. Like real estate with short term leases. Certainly not bonds or consumable STUFF.

My parents $30k mortgage at 6% in 1967 probably seemed a bit onerous to them then...but 30 years later just one year's rent on that house would have paid off that entire mortgage. The annual rent it generates is now equal to three times their annual salary back then. Not bad for a loan that cost them $1800.00 a year in interest, and which could have been totally offset by rental income if it was held as income producing property.

Sure, if the SHTF, all bets are off on real estate and other assets subject to govt. control....But, if the SHTF, most bets are off. Then you'd most likely do best holding gold and silver.

Wed, 12/03/2014 - 05:19 | 5511728 gwar5
gwar5's picture

A nice Graph is worth a thousand words.

Wed, 12/03/2014 - 06:01 | 5511735 Lynn Trainor
Lynn Trainor's picture

What president Obama has done to this country is unforgivable!

Wed, 12/03/2014 - 10:17 | 5512221 GoldIsMoney
GoldIsMoney's picture

You'll see the honor him as any other president before. They will claim he has done miracles for - whatever....

Wed, 12/03/2014 - 06:43 | 5511757 RabbitChow
RabbitChow's picture

When the crash, the reset, or whatever you want to call it happens, joe average citizen will not be informed enough to know who caused all this. And i would fully expect tptb to twist the situation to blame those who borrowed too much and couldnt pay it back. Ya, its there fault. We just loan the money. Its your responsibility to be able tp pay off the loans.

The real problem is not fractional reserve lending but rather uncontrolled lending. Everything from naked short selling of stocks, derivatives, paper on the comex, etc., creates money out of thin air. Too many people started doing what the guv and banks do all the time, and the only temporary winners are those who cash out first--- and presumably convert fiat to non dollar denimnated hard assets held outside the banking system.

Wed, 12/03/2014 - 06:54 | 5511766 Grouchy Marx
Grouchy Marx's picture

Nice post, and well written. 

I'm looking forward to part 2, where you discuss what steps an individual can take to protect himself from the debt crisis. 

Wed, 12/03/2014 - 07:36 | 5511792 geekz_rule
geekz_rule's picture

this is inevitable. always was. IT WAS DESIGNED TO BE THIS WAY. when you give a small collection a MOTIVE to increase public debt for personal gain... duh

P < P + I

END THE FED ( and all global Central banks )

Wed, 12/03/2014 - 07:47 | 5511805 geekz_rule
geekz_rule's picture

there is NO DEBT, anyway. its all BULLSHIT

1's and 0's owed to BANKSTERS that didn't have the assests to loan to begin with. they printed it out of thin air.

this is like saying we "owe" the tailors that "sold" the emperor his suit of new clothes.. that doesn't exist. the emperor has NO CLOTHES. why would we honor a debt for something we Didn't purchase?

only when the tailors themselves ( or global central banksters in this case ) have taken over government to the point that they can force this bogus debt be paid, is it even a concern...

THIS IS FUCKING MADNESS

blaming fake L or fake R is to be MAD. jesus fucking christ wake up 

P < P + I

Wed, 12/03/2014 - 10:34 | 5512294 Wild E Coyote
Wild E Coyote's picture

Wesley Snipes got into trouble talking in similar ways. 

I like you guys. 

You borrow from someone a piece of useless paper, then use it to buy something useful, than say, why should I pay back since the paper was created out of thin air anyway.  Nice try. 

Return the paper my dear friends. Stop arguing. There is no other way out. It is just like borrowing from that payday loan shark. 

Instead of borrowing you guys should try printing your own money. That would be more interesting. Since you do not need to pay it back to anyone. 

 

Wed, 12/03/2014 - 07:47 | 5511806 bunnyswanson
bunnyswanson's picture

You get in the car, catch a flight to Tel Aviv, take a cab to 400 Trillion Dollars, Yada Yada Way, and say, "this is a hold up."

Wed, 12/03/2014 - 07:50 | 5511810 bunnyswanson
bunnyswanson's picture

People have gone to war for less.  It's survival of the fightest.

"Im not crazy anymore!"  https://www.youtube.com/watch?v=26DD0JwAbAc

Wed, 12/03/2014 - 08:32 | 5511885 ignl
ignl's picture

Fed. Insolvent. Pick one.

Wed, 12/03/2014 - 09:53 | 5512127 _SILENCER
_SILENCER's picture

We're going to need to horizontalize some folks.

Wed, 12/03/2014 - 10:21 | 5512241 Road Hazard
Road Hazard's picture

Hi, I'm simon black. I know all about lies because I travel the world renting houses for like $2/hour in major cities. When I can rent a house that cheap there, something is seriously wrong with that countries economy and collapses is imminent. I like the sound of my own voice and when I'm at parties, I need to be the center of attention. Sure, I'm an ass hat of a douche but that's life.

Wed, 12/03/2014 - 10:28 | 5512271 Wild E Coyote
Wild E Coyote's picture

At a certain point of time, US can and will default mostly by stealth. 

US already defaulted in 1971 when it refused to pay back in Gold. 

US already defaulted when it refused to pay back Gaddafi's supposed stolen funds. 

US as far as I know still owes Phillipines Ex President Marco's overseas funds. way back. 

US also defaulted on many other funds with Indonesia, Iraq among many others under differnet drama. 

You may call it selective default. US will continue doing it more and more. 

US next target seems to be Russia.

Of course, Ukraine has already been wiped clean. 

 

Wed, 12/03/2014 - 10:39 | 5512301 Johnny_is_alrea...
Johnny_is_already_taken's picture

Well I have BAD NEWS for you americans

 

soon enough you will be living like us here in Europe paying 23% sales tax, $8 per gallon of gas, 28% income tax (IRS) (40+% in some countries), taxes on monetary transactions, special taxes on alcohol, home telecom, tv broadcast, a 100% tax on car prices (yes a $10000 car in the US here costs $20000 + 23%) etc etc etc

Your $18T debt pile wont stand a chance when the tax machine fires up its engines !

 

Wed, 12/03/2014 - 11:09 | 5512434 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

Any guesses on how much it will cost to renounce US citizenship by the time we implement a "wealth tax"...?? 

Currently $3,500 (recently raised).  I'm betting it will cost $10,000 or $20,000 by the time they put the 1-2% annual wealth tax on us.  The wheels are already in motion with FATCA.... it won't be much longer.....

Wed, 12/03/2014 - 14:55 | 5512700 bid the soldier...
bid the soldiers shoot's picture

 

Shouldn't the lie about the 'mom and pop" household sector count as sumpthing?

Wed, 12/03/2014 - 12:44 | 5512825 disgruntled hou...
disgruntled housewife's picture

Helen Keller in 1911 had the following to say about the system...

   "The few own the many because they posess the means of livelihood of all...The country is governed for the richest, for the corporations, the bankers, the land speculators, and for the exploiters of labor. The majority of mankind are working people. So long as their demands- the ownership and control of their livelihoods- are set at naught, we can have neither men's rights not women's rights. The majority of mankind is ground down by industrial oppression in that the small remnant may live in ease."

Until we demand a monetary system that serves us all and not just the financial sector we will have increasing pressure put on our meager earnings. If you want to stand with the rest of your fellow men and women then refuse to buy products like Apple made with slave labor. Refuse to purchase GE, Amazon, and all the others. Stop shopping- bring the system to its knees. Until you realize you vote everyday with your dollars by supporting these oppressors of labor- the multi nationals and the theft by the big banks you have no one to blame but yourselves. People have more power than they are willing to embrace. Stop feeding the monsters. Buy local when necessary- stay out of Walmart, pull your money from BofA, Wells Fargo, Citicorp, Goldman, JPMorgan and the other vermin. Credit Unions work great. If you do this already then pass the word to others. Stand in front of Walmart and banks and look like a fool by telling them to vote with their dollars. These are the people that need to be reached, until we do so we can complain until the cows come home but nothing will change. Be evangelists- throw revivals- set up tents- do whatever it takes to reach the sleeping. If we allow those at the top to continue on the current path then we are doomed. We cannot win an armed conflict with the government- believing you can is naive. Breaking the system will cause some collateral damage- help your neighbors. The government and those that own it need to know we are in the driver seat and we are not going to be pacified by making little marks on a ballot. They need to know we can and will survive without them. It is time to take back what is ours- that government is ours and either it behaves or we throw it out. Starve the corporate donors, withdraw your money from the system.

Wed, 12/03/2014 - 21:52 | 5515165 latestflavor
latestflavor's picture

First, there is a huge difference between funded debt and unfunded debt (promises that we could never afford).  Second, i realize people don't think that the boomers will vote themselves out of entitlements that were always a pipe dream (and never will be affordable without letting 100 million into this country to pay into the tax system).  But the rating agencies will continiue to downgrade as each years deficits reveal lack of flexibility on entitlement reform.  Realistically it is hard to imagine people willing to settle with soviet style healthcare, but ultimately it will have to be fully socialized.  Concierge for the rich, crap for the rest.  Retirement ages increased, new laws enacted on firing old people.  Life threatening surgeries only.  Pension reform on govt employees (we know that will be the last to go).  We will be pushed to the brink, but it will happen.  Also, because of this rates may never be normalized so you can lower the discount rate on the PV of those obligations.  

 

We are a spoiled nation that thinks it an afford champagne on a beer budget.  That will have to change, and it will until either hyperinflation and/or the rating agencies..... or another world war where we are the victor and get to all the marbles for saving everyone.  After all, that is how we got so spoiled with unrealistic expectations in the first place.  It was good while it lasted, but its getting long in the tooth.  

Do NOT follow this link or you will be banned from the site!