Realizing the Full Implications of the Forthcoming Catastrophe

Economic Prism ^ | 26 July 2019 | MN Gordon

[amorphous]

Roman poet Virgil penned these words in his epic, The Aeneid, roughly a generation before the birth of Jesus of Nazareth. They can be loosely translated to, “the descent to hell is easy.” Those who’ve traversed this passage can attest to the veracity of this axiom.

Though not apparent in the milieu of Virgil’s poem, for our purposes today, we’ll extend its application to the insidious progression of currency debasement. What short utterance more aptly characterizes the steady degradation, as currently practiced by today’s church of state?

Yesterday [Thursday], for example, the House acted with untroubled ease to further America’s descent to hell. With little resistance, federal spending was increased and the debt ceiling was suspended for two years. Having delivered tomorrow’s curses, the nation’s Representatives can skip town without missing a moment of summer recess.

As you can see, the allure of getting something for nothing is far too enticing for even the most honest politician to pass up. And with an endless supply of fake money behind you, why stick your neck out and get clobbered? The public debt encumbered is already well beyond honest repayment. But that’s a problem for tomorrow; not today.

Representative government in America, circa now, has nothing to do with upholding individual freedoms and liberties. Nor is it about making tough decisions in the interest of the long-term health of the nation. It’s about doing the expedient – and suspending the debt ceiling so the descent to hell can be made as comfortable as possible. Wreckage from the Past

Rarely are people capable of understanding the full implications of a forthcoming catastrophe of their making. Perhaps, it’s not because they’re truly incapable of it. More likely, it’s because they’d rather ignore it.

Facing up to the facts of an unpleasant reality can be painful. It also implies a recognition that what one has been doing isn’t working. And that the arduous task of righting one’s wrongs must be initiated forthright.

Pursuing delusion, of course, is abundantly easier – for a time. However, as the wreckage piles up from the past to the present, the day of reckoning becomes much more ominous. There really is no escaping it.

Certainly, Congress is far from this recognition. Otherwise, they’d get serious about the nation’s fiscal doom, tighten their belts, reverse course, and suffer the immediate consequences. But that’s not what’s happening at all.

Instead, Congress is doubling down on their wreckage from the past. They’re blowing the debt out like there’s no tomorrow. The insanity of it, even for a casual observer, is near impossible to ignore.

For example, at the turn of the new millennium, the national debt was $5.7 trillion. By 2010 it had more than doubled to $13.5 trillion. By 2020, it’ll be over $24 trillion.

Hence, over the last 20 years the national debt has increased 320 percent. But over this same period, nominal gross domestic product (GDP) has only increased 100 percent. What’s more, this divergence stands to get much more extreme…

Realizing the Full Implications of the Forthcoming Catastrophe

When the next recession arrives, and Washington pulls out all the stops to counteract it with massive new applications of debt based stimulus, the debt will go vertical while GDP flat lines or contracts. These different trajectories will be reconciled by default or price inflation. Washington, no doubt, prefers price inflation.

The popular delusion of the 21st century is to assume the highest virtues of democracy. This faulty assumption propagates a dangerous archetype: the tyranny of the masses and its twin consequences, deficits and inflation.

Voters want a free lunch. They want their neighbors to pay for it. They elect stooges to office who promise massive social welfare, public works, and defense spending programs. Then, the hack economists advance an absurd theory – like Modern Monetary Theory – to deliver something for nothing.

The deficits mount up year after year, the currency’s debased year after year, until something gives. In short order, confidence evaporates and price inflation explodes. The country succumbs to political, economic, and cultural destruction.

Indeed, the descent to hell is easy. But Virgil also adds a lesser known corollary, “Sed revocare gradum, superasque evadere ad auras, Hoc opus, hic labor est,” which can generally mean, “But to retrace the way and return to the upper airs; this is the task, and where the mighty labor lies.”

Congress may still ignore it. The Treasury Secretary may still ignore it. The President too. But for more and more Americans the full implications of the forthcoming catastrophe are becoming painfully clear. That is, the realization that we are absolutely and utterly screwed.

Woohoo!

Sincerely,

MN Gordon for Economic Prism

[amorphous]

I will say this about the above. Though we've had a recent scare or two, they've kept it going longer than I thought possible. But they now control everything!

[GOP_Party_Animal]

I wish there would be a better description of what this catastrophe will look like. I understand that borrowing money will cost higher and higher rates, so that the share of the federal budget that allows it to function becomes less and less. But what will that look like? No more federal welfare programs? Reduced Social Security payments? Aircraft carriers docked for years? And what will be the response to this contraction?

[Brian Griffin]

Lots of people are going to notice a $25 trillion meltdown, which will happen after the Democrats take total control, which I believe can not be prevented.

The banks can pay low interest rates and I can continue withdrawing money out.

I four years my bank money will mainly be spent and I will wait as long as possible to take Social Security.

[Prince Caspian]

The cited reference to Virgil's Aeneid has always made a deep impression on me.

So easily one slithers down to Hell.

By night or day, no matter. One gets in.

But grappling one's way up again to light,

that is the task, the toil.

A few succeed, by Jove's grace,

or a hero's soaring will.

[Jim Noble]

Economic determinism is Marxist.

In 1945 all the Reichsmarks on Earth were toilet paper. In 1955, Germany was thriving. There are many, many other examples.

If ten-year old trannies are celebrated for dancing in gay strip clubs, does it really matter what happens to the money?

[tet68]

Pursuing delusion, of course, is abundantly easier – for a time.

One can deny reality but there is no denying the results
of denying reality...as the demorats are finding out.

[Jim Noble]

Oh, and I should have added: Anyone who was consumed with saving and investing while his country was turned into a perverted shithole and was overrun with wave after wave of shithole dwellers deserves whatever he gets.

[Brian Griffin]

Anything imported will be terribly expensive.

Trips overseas will be too expensive for most Americans.

Many Mexicans will say adios, cerdos.

Social Security payments will decline about 20% in real value on domestic items.

Federal taxes will go up by about 2/5ths.

[Brian Griffin]

There’s nothing I can do about perversion or Central American invasion.

There was nothing my ancestors could have done about American chattel slavery.

“If voting mattered, it would be illegal.”

George Carlin

[Brian Griffin]

“In 1955, Germany was thriving.”

By 1945, most German cities were mainly rubble.

There was lots of rebuilding work to be done, financed by an expensive tax on the surviving buildings.

[Brian Griffin]

“does it really matter what happens to the money?”

My county insists on collecting property tax.

Government makes sure lots of things matter to me.

[Brian Griffin]

American life will resemble that of 1970’s Britain, but without coal miner strikes.

[econjack]

The allure of offering "free stuff" to stupid people gets them reelected, and that's all they are about. The long run to them is their term of office. Warren Buffet proposed one solution: Any sitting member of Congress who supports a budget that increases the deficit by more than 3% cannot run for reelection. Until there's a punishment for spending too much, there will be no change. To date, they say the cause of the deficit is that taxes are too low. They never even stop to consider that lower spending also provides a means of lowering the deficit. Truthfully, a Constitutional Amendment is probably the only thing that will stop them from more stupid spending. Free cell phones for deadbeats...really?

[amorphous]

I wish there would be a better description of what this catastrophe will look like.

The nearest comparison is probably Venezuela, unless our enemies take advantage of our future weaken state, we being the most powerful nation, and as usually happens in such circumstances - using history as our guide.

Technology and those best able to take advantage of it will be a critical factor. All in all, the entire globe will feel the effects of a declining economy in the US of A, IMO.

[Rurudyne]

Keystone Keynesians

Bad times demand more spending.

Good times are an opportunity to spend more.

Lather, rinse, repeat.

These days they aren’t priming the pump, they’re engaging in economic masturbation to such an extent that that one character from Dr.Sax would be embarrassed.

[amorphous]

Truthfully, a Constitutional Amendment is probably the only thing that will stop them from more stupid spending.

Agree, but that's never going to happen. Barring some unforeseen technological - or spiritual - savior, we're off the cliff and headed for a very hard landing.

[100American]

To me more trying to talk things down by predicting something they intend to make money on

Sounds like Democrats wrote this

[Truthoverpower]

Oh gee. The debt !

Snore

[gundog]

You only pour salt in their wounds by paraphrasing Ayn Rand. :)

[metmom]

Prepper ping.

Pay off all debt and make sure you have everything you need.