Posted on 05/31/2023 10:19:56 AM PDT by george76
Analyst and financial writer John Rubino says this time, the so-called debt ceiling fight could end in a systemic failure. Rubino points out, “In a well-run society, the debt limit would be zero.
Governments should not borrow money in the first place. The amount of money we are borrowing is catastrophic. Historians are going to look back at this era, and they are just going to wonder why we allowed it to happen and what were we thinking. We are destroying the global financial system by allowing governments to borrow this much money. The debt limit thing is being called a crisis, and if they let it go too far, it will be a crisis. . . . I think this game of chicken will end in the not-too-distant future, and if it doesn’t, they have an ulterior motive. They want to crash the economy because that achieves something for them. We can speculate about this. The party in power wants to crash the economy, and that is a very dark scenario. . . . They are willing to burn down the world around them to get what they want. Look at Russia-gate and the contents of the Durham Report. The Democrats are willing to do stuff like that. . . . I would not put it past the Democrats to plan and implement it if they think it benefits them.”
The economy is already doing bad and getting ready to tumble. So, why not tank it with a debt ceiling impasse and blame it on the Republicans? Some speculate that is the Dem plan because the Obama/Biden economy is going down anyway.
If the economy sinks low enough, how much money will the Fed print to bail it out. Treasury Secretary Janet Yellen is already warning there is going to be more bank consolidation. In other words, more banks will be going under. Rubino says that is a huge worry and explains, “The dark part of this scenario is the government has to step in and bail out those little banks. Let’s say it’s a couple of trillion dollars . . . to them, it’s play money . . .but what if the markets look at that and say what happens if all the other sectors blow up and the government has to come up with $10 trillion or $15 trillion? What does that do to the dollar? Then you go from a banking crisis to a currency crisis, which is almost impossible to contain. I think it is completely possible that we go to that next stage.”
"Crickets"
Isn’t that their plan? Throw a little nuclear exchange in there and “Bob’s you Uncle”!
We are destroying the global financial system.
By design?
This guy has no idea what he's talking about. Not only is it acceptable for governments to borrow money ... but in some cases borrowing money is the best approach to funding public expenditures.
Public infrastructure is a perfect example. Paying for roads and bridges out of current revenues is a poor approach to infrastructure management and finance. Matching the payment period for an asset to the useful life of the asset is exactly the right thing to do.
The problem we face is when governments borrow boatloads of money to fund operating expenses that have a limited "useful life." Borrowing money to keep Social Security and Medicare solvent, for example, is a disaster.
“We can’t stop, we have to slow down first.”
Then slow down increasing spending.
“We can’t slow spending or we are immoral and uncaring about the poor, women and minorities.”
Then be called uncaring.
“You’re a Nazi!”
The problem is borrowing of all types. I believe consumer debt is at $14 trillion at the moment. If there is a financial collapse, I certainly hope there isn’t a bailout. I’m debt free and have cash on hand. My thinking is simple. I play the long game. When people have to sell to cover their obligations I will be there to help them. Of course depreciation is a real bitch and requires a significant discount of any sales price. 😂 Suckers.
“Historians are going to look back at this era, and they are just going to wonder why we allowed it to happen and what were we thinking.”
Well, that’s easy. Half of the electorate is economically illiterate, and a good portion of the other half is benefiting from the generational theft.
Borrowing is borrowing to our “betters” in DC. Their reasoning: If it’s good at all, then it’s always good for any government agency that wants to. Of course, it’s bad when _tax payers_ do it. They want solvent tax payers to make government solvent. And no agency will be denied: if one gets to borrow to the hilt for “infrastructure” programs, they’ll demand the same for their entitlement programs. And right now, they do indeed get it.
All this can be turned around. But that would require changing minds and never looking back. Either in government or in We the People. I don’t see that happening anytime soon. I think it’ll come come to a grinding, screeching, crashing halt first. But we can try! :-)
Exactly Correct!
The dollar, which is NOT money, is in fact a unit of debt. Inherently designed to be a debt Trap from which there is no logical way to escape.
Consider this endpoint example of using debt for money - say the world has NO money, so one day someone creates a dollar. There is $1 in the entire world. Say, now, that someone loans it out at 10% interest. The borrower must pay $1.10. Where is that extra 10 cents coming from? It doesn't exist. Now, multiply this simple end-point example by $32 Trillion, and that illustrates where we are today.
The solution is to reset the financial system, wipe out the debt, and start over.
This is where NESARA/GESARA comes in. The "RA" means Recovery Act, the recovery of the downfall of fiat. The dollar MUST crash, as nobody will just switch over from the dollar to NESARA without being forced to. It's gonna be painful, but life will be so much better with real Constitutional money as opposed to un-Constitutional fiat.
That and we as a people yet lack the will to, once again, “mutually pledge to each other our Lives, our Fortunes and our sacred Honor.”
By the end of this decade the yearly interest payments on the debt will exceed the defense budget. The total debt is presently larger than our GDP and the gap will continue to grow.
Wait until the hyperinflation kicks in and we’re servicing a $40-50 Trillion debt at 20% or more. Can you imagine $10 Trillion each year in interest alone? A vicious cycle of major tax increases and even more borrowing will set in and thoroughly destroy us.
Stop the madness now!
“Historians are going to look back at this era,”
When we are all under the communism of the new global order then there will not be any looking back. Inconvenient history will be erased.
Zackly. “Wot ‘istorians?”
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