In a day early.
In life, we all choose who and what we want to be. Your ability to make informed decisions should be based in fact or as close as you can get. That is the best you can do and sometimes that doesn't always work. So I try to be as accurate and as truthful as I can be. I am not here selling bullshit.
I write here. I ask for nothing and I receive nothing and I will tell you this. I am not here so that some uninformed whack job who finds the truth to be inconvenient can launch his vitriol all over the comment section. If you don't like what I write here- just leave. I will cancel your subscription and return your money. 100% guaranteed. You will then have enough free time to read about Katie Couric's makeup or what the stars wore to the Oscars over at Huffington Post.
Remember Harry Markopolis? I do. Harry only had to tell the SEC for 9 years that Bernie Madoff was a fraud before someone actually took notice. As it turns out- they never did listen to him- Madoff's scheme imploded first. So what I thought I'd do today is prove to you that our nation is bankrupt and why it is that we can never pay our debts. Hopefully it will not take 9 years nor will people be calling me Frankenstein Markopolis although...that has a nice ring to it.
Are you rich if you have a million dollars in the bank but owe 3 million dollars to the IRS? I don't think so but there are those who would argue.
That's the dead man's party. I'm a millionaire...at least until I pay my debts. That type of delusional thinking is precisely the current state of affairs in the U.S. So there's that and then there is this...
A comment from Zerohedge which captures the pure essence of my writing philosophy. I wish I had written it.
Have you ever awakened from a dream, covered in sweat or shock, and wondered if it was real? Or believe that if you dream something often enough- it becomes reality?
So as our "leaders" continue to mask and hide the realities of our bankrupt society, perhaps we have actually begun to believe our own bullshit. Perhaps people will believe our economy and country are fine just as long as we print and add over a trillion dollars worth of liquidity to markets every year.
What the FED has done for the past 5 years is UNPRECEDENTED in the U.S. Nobody really knows how monetizing the debt and printing trillions will turn out. Most of us think it will eventually lead to hyper inflation.
Ever hear of Hauser's Law?
Hauser's Law is a historic figure that has remained static for about 75 yeras or since WWII. Essentially, Hauser's Law states that tax revenue averages 19.5% of GDP no matter what. Historically speaking if GDP were 15 trillion, then the US would take in just a shade less than 3 trillion in tax revenue. http://en.wikipedia.org/wiki/Hauser's_law
In other words, Hauser's Law is a cap. No matter what our government does- no matter who it targets or how much it raises or lowers tax rates- all the government can grab is about 19.5%.
So what does that mean?
It means...it's a dead man's party. We're broke and pretending not to be. Our liabilities far exceed our assets. We cannot EVER raise enough money to pay what we owe. We cannot tax away that 16.6 trillion we owe when the absolute most we can tax each year is about 19.5% (this year the CBO says taxes will hit an all time record of 2.7 trillion) and yet we will spend 3.5 trillion this year alone- thus adding another 800 billion to that massive 16.6 debt that we cannot possibly pay.
All debt is paid. Either by the lender or by the borrower.
Therefore, it is mathematically impossible to tax ourselves out of this mess. It can't be done. Hyper-inflate debt away, default, or extend the dead man's party just as long as we can. Those are the choices. Right now- it's the dead man's party with Ben Bernanke supplying the punch. I don't see that as good or bad- labels that actually don't really matter. I just see those things as the potential outcomes and I have positioned myself accordingly.
I shall leave you with a little Oingo Boingo before I fire up the RoadKing. Have a good weekend!