Gold, Gold, Gold!! Nothing bad happens with Gold!
No Recessions...(wait...that’s false)
No market crashes...(wait, that’s false too...)
No fractional reserve banking...(wait...false again...)
No inflation...(wrong again...)
The bottom line is that there isn't sufficient margin (ie asset inflation) to sustain the level of credit expansion necessary to continue driving (illusory) economic activity in the form of consumer spending. In other words, the FIRE economic model is DEAD. As a result, the tax receipts derived from income, sales, property & capital gains taxes necessary to support the welfare state are cratering.
In the near-term, as a result of slowing export demand & growing unemployment, both sovereign wealth funds (eg China) & domestic savers will greatly reduce, if not outright halt, their purchases of Treasuries. This will reach a point where the volume of debt sold will not even cover base-line operating deficits, much less finance the TOTUS fantasy budget (eg card check, health care, cap & trade, education, civilian force, etc).
And forget about printing money - after the People experience first-hand the immediate inflationary price spike effects of the Fed monetizing the debt via quantitative easing (QE), the Fed will be reigned in by Congress to prevent any further destruction of the $USD. (Because we ultimately need a steady, if weak, $USD to encourage foreign capital investment - assets [like factories], not debt.)
At this point, without the ability to either raise/access new credit via Treasury sales, nor print money by Fed QE, the Fedgov will have no choice but to make significant cut-backs so that expenditures meet revenues derived from actual hard-money tax receipts.
There is nothing the brain-fried crackhead nor his masters can do about this playing out. (The drug-addled -0- doesn't even have slightest clue as to what is transpiring. We are actually extremely fortunate that an affirmative action incompetent of his magnitude is the Left's token figurehead.) These course of events were set in motion decades ago and are now finally coming to their final fruition. Remember, socialism always fails! It does, it will, and it is actually in the process of doing so as we watch world events unfold.
Kick back and enjoy the show - just make sure you have food, firearms, family & friends in place to form your local support organization when the SHTF.
Ping
With your permission, I would like to copy your article and distribute it to others
bttt - banking and gold
Bump for a.m. read. /
Article 1, Section 8.
L
Great post. Thanks. TOTUS could take the first step to reversing the monstrosity by signing an executive order having United States Treasury print the bills of credit. /deadly sarcasm Great post/thread. Thanks to all posters.