Thursday, October 27, 2011

When Failure Becomes the Only Option

I am not kidding when I say- that we could take a bunch of third grade kids and make a more intelligent and effective government than the one we have now. Beyond a shadow of a doubt.

Just for the record, I want to say that I hated the idea of a "Super Congress" or "Super Committee" for a couple of reasons. It is just another debt ceiling distraction. And like all things government, I keep a watchful eye on that latest incarnation of three card Monte.

There is no constitutional provision for such an aberration as a "Super Congress." Secondly, shoveling the debt reduction dilemma to someone else is just another form of kicking the can down the road and not dealing with the problem. Thirdly, the super committee is no more intelligent or any less bi partisan than Congress as a whole. It simply allows the majority of congressional seat filler uppers to blame a minority stake. Hopefully they think, once we scatter the blame for austere cuts and tax hikes on the super committee, the folks back home will re-elect us. Past history has proven them correct.

So here's the super committee debt dilemma. The Democrats want tax hikes. The Republicans don't. Sound familiar? Same bipartisan rhetoric.

I actually believe that a minority of Americans actually understand that our country, economically, is fucked for the foreseeable future. We are the minority and we are correct. The problem is- is that our President, Congress, bankers and the elite- have manufactured this giant lie that we are fiscally healthy and sound (due in no small part to that ridiculous manipulated stock market) and unfortunately the vast majority of Americans believe this. More taxes or welfare benefit and entitlement cuts are now going to piss off a majority of delusional recipients and taxpayers. This delusional segment of our society is the same majority that our "leadership" has been purposefully lying to- to get re-elected. This same segment owns homes and cars they can't afford- stripped of their wealth by bankers. This same delusional crew, perhaps armed with a liberal arts degree, already think they know all the answers and spend their evenings drinking wine and watching DWTS.

I love poker analogies. Poker is life condensed, a micro view. A poker game ends when the winners have all of the money and the losers cannot afford to buy in any longer. That is precisely what has happened in the U.S. The 1% have all of the chips and the rest of us cannot buy in any longer. The rest of us are leaving the table. Unfortunately, the game is over.

Everyone with half a brain knows this. Congress knows this. Bankers know this. Truthful investment advisors know this. The people buying gold and silver know this. The debt fueled, fiat currency system has collapsed. It failed in Japan, it failed in Europe, it has failed in China and the U.S. How long can the insolvent- bail out the bankrupt? That is the 64,000 dollar question.

I believe that a systemic failure of our currency system and an economic collapse is the only way to remedy our debt problem. Failure IS the only option. Just like letting bankrupt banks fail. There is no remedy here until the U.S. accepts that our politicians have bankrupted us via a never ending credit line available at the FED. Enormous tax hikes on everyone cannot pay this debt down.  If you are stupid enough to think that we can ever pay back the 15 trillion we owe right now with 1.5 trillion dollar deficits each year, the 120 trillion we owe in entitlements, the interest that compounds daily at a rate that can only go up, no jobs, you might qualify as one of the majority of Americans that Congress and bankers habitually lie to. Put down your Lexus' keys, go grab some chardonnay and snap on your television, it's time for Dancing With the Stars. 

1 comment:

Anonymous said...

Failure is the only option. I for one appreciate what the financial wizards of Europe have done in kicking the can down the road. Hopefully the failure will be deferred until after our elections. I worry, however, how the banks that are taking a 50% haircut, are going to comply with the orders to raise more capital. Who in their right mind is going to invest in these banks that are still sitting on what is left of the Greek debts?