Germany’s Fiscal Suicide

Germany’s general state debt spiral should be a constant feature in daily headlines. Its prominence should force policymakers into a radical fiscal turnaround. Yet while Germany is working under immense pressure to ban the AfD, forming alliances with left-wing extremists and eroding the political culture, on the other side of the Atlantic, preparations are underway for the approaching storm.

We live in record-breaking times. In the first quarter of this year, global debt surged to a record high of $324 trillion. This milestone becomes significant when compared to global GDP, which currently hovers around $110 trillion. Governments worldwide now owe 100% of GDP -- an alarming reality, as no modern state has ever managed to free itself from the ensuing fiscal bind once this threshold is reached. Debt levels of 80-90% mark the "point of no return."

At this scale, debt reaches a critical mass. It inevitably forces an escalating debt service burden that drains scarce capital from the private sector to finance bloated social funds, ultimately leading to the same scenario we faced 15 years ago during the last severe sovereign debt crisis. Back then, Greece’s impending default sent shockwaves across credit markets. Central banks intervened with trillions, and governments stepped in to rescue debt-laden pension funds and banks with taxpayers' money.

Greece’s national debt stood at 143% at the onset of this crisis, and it is now about 155% -- no debt consolidation has occurred. The southern European countries are, quite frankly, sinking into a swamp of debt. Italy, with 140%, Spain at 120%, and France’s budget deficit at 7%, leave much to be desired. On average, the EU’s debt-to-GDP ratio is now approaching 95%, closing in on the global benchmark of 100%.

“Leftists are known for their financial irresponsibility, yey people keep voting for them.”

We’re not much better - we keep voting for lower taxes, to the point where the majority of people don’t even pay income tax (or pay next to nothing), so they no longer have any skin in the game.

---- "Little doubt that the NWO marxists have this as their goal, bankrupt the world then take over."

The observation is in two incompatible parts. Bravo. 1) Bankrupt a nation. 2) Expect that nation to flock to the ones who did the bankrupting.

Years ago in an academic setting, the so-called Cloward-Piven strategy was discussed, pro and con. I made note of the fact that these two jackasses depended on the "system" to not bankrupt as it would pay their pensions. In the 60s, turning the Democrats in the directions they have since gone )and gone too far), the idea was to "use" the poor, just as other totalitarians had done in other nations, consistently to the detriment of those nations.

Today we are watching the entrenched Left worldwide build a debt far beyond any nation's ability to pay back. The correct strategy is not more Cloward-Piven, but some version of a jubilee, putting the fattened debt-owners out of business. This will occur. The only remaining question is -- when?

As to those two jackasses, he's long dead and she is in her frail nineties still cashing the checks that the "system" which she thought to collapse writes.

Like another academic, Paul Ehrlich, they were wrong and remain wrong. For which the Lefty minions applauded like trained seals. "Experts" and "scientists" and all so often are not what they pretend. And no progressive in fact is progressive, except in the political jargon of accelerating a mess into a bigger mess.

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