Posted on 09/17/2010 7:12:14 AM PDT by SeekAndFind
Just wait until a few million of those Food Stamp ‘debit’ cards quit working. Things will get really interesting about 48 hours after that.
Stagflation nightmare next year. As ARMS come due. The only option is going to be moneyprinting or default. Be Prepared.
btttt
Remember all those non-interest bearing IOUs given to Medicare and Social Security for their “surplus” funds in years past? Now that both programs are either beyond or soon to be beyond the breakeven point of current revenues failing to cover current expenditures, those “notes” are coming due.
And there is no money to pay them back.
Ah, the glorious days of the “Clinton Surplus” (with help from the Rebubicans...)
The whole thing is an unsustainable pyramid scheme. It will be painful, but the eventual conclusion has to be: you're on your own; don't expect government to help you -- that's not the proper function of government.
The Medicare cuts are the best part of Obamacare and one of the only two good things Zero has done, and I hate the GOP's pandering about them.
Demographics double edge sword!
The boomers reached an age where they became sellers of houses, sometimes two houses. Housing bubble they created goes bust. To add to the problem, retirees also become much more conservative consumers. In a 70% consumer economy this switch is a disaster.
As these same boomers switch investment strategies (100-age=%equities) and they draw down public and private pension funds, the equities bubble will also go bust.
Good article. In addition to the obvious topic he also touches the political class’s favorite pass time of wordsmithing something into/out of existence. It reminds me of the Rumpelstiltskin story where the demand is to make gold from straw. Believing that renaming alone magically morphs the thing/idea/etc into a completely new and unique entity is wildly delusional! OTOH We the People have fallen for it so many times. Guess we all mostly want to believe a lie rather than the truth.
At any rate, you must know the govt will do all in its power, but not necessarily w/i its authority, to make sure all the balls stay in the air. As I see it this is a double whammy. First, you have the fed taking w/o restraint to prop a system they know is going to collapse. Once the end comes the Eater Class will riot to take what they’ve been told is rightfully theirs.
Excellent description of the realities of economic decision making. The other casualty of the boom is the “animal spirits” of entrepreneurs. If entrepreneurs cannot see where they create a stream of profits because effective demand has shrunk to survival levels, then we are in for an extended recession and a much lower level of economic activity, i.e., few jobs for our children.
48 hours? You, Sir, are wildly optimistic.
The “Haves” and “Have Nots”
I can see that people that saved, prepared, stored up, bought assets instead of TVs and Toys will be demonized.
During the hyper inflation of Germany before WW2 the people went and ransacked the farmers thinking they hoarded everything. Turned out the farmers had enough only for themselves but the mass of scavengers took it anyway.
The future of your family may come down to what you have on hand if a crash happens.
I think certain things may have real value?
Guns
Ammo
Hand Tools
Seeds
Food
Water
Livestock
Transportation that needs no fuel (Bikes or Horses)
Alcohol
Tobacco
Books (Your kindle may be worthless without power but a book is entertainment.)
What will have NO VALUE?
Paper Money
The Word of Congressmen & women,Presidents,Government officials
What could go either way?
Notice that Gold and Silver may be worthless or be a store of wealth. But you can’t eat it or use it for anything practical.
Ping for later
Start posting gaurd.
Just happens to coincide with the the Chicago area politicians and government hacks are looting the state funded pensions for themselves by giving themselves outrageous raises in their last year of “employment” which drives up their pensions. This is not gonna end well folks. Even my utopian burb of Naperville gave its former government hack of some sort a big raise in his last year(s) and now this dedicated public servant makes $141,000 per year in retirement.
bookmark.
Applying GAAP to government is a splendid idea. And let us not forget if any private company attempted something like Social Security, those responsible would deservedly be sent to jail.
What a sham our government has become!
Yep. THIS is how the 2nd American Revolution gets started.
One day (soon) the adults are going to have to say “No more... we’re tapped out!”
When that happens, the permanent welfare class is going to go bat$hit, rioting and rampaging. We conservatives (the adults) are going to be forced to shoot them down like dogs - purely in self defense.
I agree with your double whammy idea. The feds are propping up the system that they know will collapse. And when it does, the eater class will riot and will be probably egged on by dim policiticians and their media. There needs to be some serious corrective action taken by responsible and honest people in power. The current children in charge are not those people. One thought here is that the dims know that they are going to lose badly in November so they are figuring on a collapse after the repubs take office in January. That coincides with a big pile of new taxes kicking in. Given that the dims and their media are on a mission to destroy this country, I wouldn’t put it past them. You know, a manufactured crisis.
These children running the show are evil. Pure evil.
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