BS. The laws of political gravity no longer applies to the Democrats—the election of Obama is proof positive. The Dems will win in 2016 and many elections afterwards. The economy doesn’t matter.
Boy, have you ever come around. You were always right about demographics, of course, but it seemed like you thought there was some kind of rationale solution if we just appealed to logic, honor, history, culture, etc. But, there was never any hope of solution, because it is part & parcel of the overall strategy to reshape this country - and reap tremendous profits doing so.
However, and this is a big however, the economy does matter. Denninger has been on top of this all along, but the most important element is that deficit spending is now producing a net negative return. What does this mean?
Classical Keynes has always considered aggregate demand the primary goal, in that it mattered little (at least according to theory) whether 315 million people acted independently in decisions regarding savings, investment & consumption or whether gov't acted collectively in their behalf.
But, it does turn out there is a difference: individuals are careful with their money. (Duh) The net effect is that a $1 spent into the economy typically had a multiplier impact of 2-5x. When gov't spends, people have no such restraint, so not only is the initial multiplier diminished, but over time, it actually goes negative. (For example, today $1 of debt produces around 50 cents of growth.)
What this means in the big picture is that the $trillions printed and handed out to insiders is now returning a net loss to the final recipients, such as those receiving welfare, SNAP, UE, SS, Medicare, etc.
Without a truly productive underlying economy, you can only run this game so far before it collapses. The collapse of course will bring wage/price controls, rationing, etc. It will require, by necessity, war power type executive orders to enforce.
What does this mean in the big picture? Well, that which is unsustainable cannot last, but the road back is going to be nasty, brutish & long. No one is getting out of this the easy way. We may never live to see a return of the republic, but it will resume in some form or fashion after reality bats last.