Posted on 09/19/2021 9:48:20 PM PDT by bhl
In a visit earlier this month to Butler County, Kentucky, Sen. Rand Paul (R-KY) warned against high government spending as Democrats continue their attempt to pass a $3.5 trillion reconciliation budget.
How do you go bankrupt? Two ways. Gradually, and then suddenly
I’ve been saying this since Clinton.
While I’ve trashed him, Bush, and Obama, Trump didn’t help
much.
I don’t honestly know what the man could have done, what
with our boys in the House and Senate fighting right along
with the Left to increase spending at every opportunity.
Right now they are entertaining compromises that are frankly
unsettling.
We simply cannot continue to spend like this. Good luck
trying to explain that to people who riot, loot, burn, and
kill on a whim.
Our elected class has created classes of people who will
be sure it’s racism if we ever stop.
Good luck from here...
I had hoped the economy would pick up and our debt would
start to reduce due to increased revenues. Nah, Capital
Hill finds more necessities by the minute.
I think we're past the point of no return. The debt will never be repaid. Nor will all those government (local, state, and federal) entitlement obligations be paid.
That's one reason few politicians worry about the debt. They know the problem can't be fixed. So they're whistling past the grave, hoping that hyperinflation and economic collapse won't happen in their lifetimes.
Après moi, le déluge."
The Fed publishes some useful statistical charts. One, M1, the money supply shows that there are five times as many dollars in existence now than there were at the start of the pandemic in 2019. Another, V1, a measure of how fast those dollars are being spent, or a gross total of all financial transactions, is oddly five times less during the same period. I take this for an explanation of why we have not yet seen hyperinflation. Clearly, something unusual is happening. What does seem apparent to me is that, like or not, we have traveled into a new economic paradigm, one beyond any existing monetary theory, and one where the normal concept of debt having to be repaid is no longer valid, so long as production and consumption remain balanced.
The $1-Trillion + reverse repos by the Fed have sucked money out of circulation, undoing months of inflating.
Now that the Saudis have effectively killed the PetroDollar Agreement** by accepting rubles and yuan for oil, a lot of unwanted U.S. dollars will come flooding back to America, so hyperinflation is still a possibility. Congress will wreck the economy anyway, so keeping a little cash, gold, silver OUTSIDE of the banking system is prudent.
**U.S. military defends Saudi, they in turn, accept nothing but U.S. dollars for their oil. A great way to export our inflation.
That’s the plan.
It will keep getting ignored until it is too late with complete monetary collapse, etc.
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