My thanks to Pete at WRSA for highlighting this at his site.
Go to both links.
Money quote:
"It becomes obvious why the Fed simply can not allow rates to go up. It has nothing to do with excess liquidity, which of course is a major concern as America goes from one excess-liquidity bubble to another. The problem is that the surging budget, which will need ridiculous amounts of debt for funding, will truly explode if rates were to go up merely to 5%. What happens if rates hit 7.5%... or 10%? At that point it is game over. And that sad ending will occur once the Fed and the administration realize that all ongoing efforts to kick start a consumption driven economy will fail. In the meantime, the economy will slowly grind to a halt as the servicing of public debt takes over a greater and greater portion of all tax receipts, until all taxpayer money is used merely to cover the interest expense. At that point buying CDS on the US denominated in euros, dollars, gold, .556, watermelons, or what have you, will be completely pointless as the bankruptcy of the US will be entirely priced in."
Game over.
Calamity begins.
Now do you understand?
The armed citizenry of the United States is fixin' to get REAL busy.
And where are you on preps and training?
Mike
III
15 comments:
The pre game show seems to be ending. Where am I? As much as my tight budget had allowed in the few years I've been putting stuff back while balancing school.
I disagree with one of his comments: maybe buying .556 isn't a good idea, but 5.56x45 is ALWAYS wise.
Not exactly the full-time job I wanted...but oh well.
I have always believed that fiat money mischief would be our downfall. I'm somewhat surprised we've made it this far in our house of cards built on sand. The outcome is a mathematical certainty, and the only path is forward through a collapse.
Hope you're ready...
My hope is that the U.S. defaults on its debt obligations. This would be extremely painful for the short term, and highly beneficial for the long term in that the current monetary pyramid scheme could never work again.
[quote]
the current monetary pyramid scheme could never work again.
[/quote]
It would never work again IFthere was no way for the majority of the people to shrug off personal responsibility for their lives.
The human desire to get "something for nothing" - we all enjoy a bargain - is perverted when some people can be robbed at gun point with impunity to pay for that bargain.
But the bottom line that allows that to happen is the lie told by the would be masters that compliance relieves one of personal responsibility.
Never did, and it never will... but it is an easy lie for the lazy and greedy to believe.
The bill is about to come due...
My take:
There will be a (another) engineered stock market collapse.
To "protect small investors", Dear Reader will nationalize the approximately 14Trillion in pension plans/IRA's and he and the next Heir To The Imperial Throne can then keep buying all the government paper they desire- at least until that runs out.
So, this whole thing will be more of a slide into the quicksand than a leap off the cliff.
They'll "guarantee" a reasonable rate and the sheeple will thank him for saving their retirement money from the evil Wall Street Bankers (and they are evil).
So don't expect an angry populace to march into Washington carrying ropes.
Perhaps it would be worth it to close out the IRA's, take the tax hit and stash the $$....somewhere.
W W Woodward on daughter's computer:
There is a major problem, Mama Liberty.
The people who have been sucking Uncle Sugar's teat for three and four generations are going to revolt when the milk runs out. They have been encouraged, for longer than some readers of this blog have been alive, to be "takers" as opposed to "givers". They have been programed to believe that they are "entitled" to government giveaway programs financed by money extorted at gun point from American taxpayers.
Unfortunately, it's going to be a bunch of those poor irresponsible programed fools who will die and are dying because they have been taught and believe that work and responsibility doesn't feel good and that taking and spending another's money is more rewarding than earning one's own.
That's just my opinion. Of course, I could be wrong.
[W-III]
Don't be sad or angry....
This is a GOOD thing that's about to happen.
Only when the US economy undergoes what astronomers call 'a cratering event' will we be able to start the long climb back up.
The sooner, the better.
"My hope is that the U.S. defaults on its debt obligations. This would be extremely painful for the short term, and highly beneficial for the long term in that the current monetary pyramid scheme could never work again."
We would also have to slash future entitlements by 80%-90%, which would lead to many cities being burned down by the leech class. One can easily imagine the imposition of martial law as a result.
Keep buying bullets...but don't forget the beans and band-aids, as well.
Speaking as one of the many trapped in an urban area and likely to get wiped out by rioting leeches who got cut-off by Uncle Sugar, perhaps those of you who make it through the collapse can raise a small obelisk or something to our memories.
My home will be my Isandlwana/Alamo.
Oh ye of little faith, Jimmy. You've got to think in terms of a "target-rich environment." Think of those outnumbered (but not out-gunned) Korean shop owners during L.A.'s last turmoil. Nobody messed with them. My neighborhood will remain leech free, thanks to my efforts and the efforts of my home-owning neighbors.
Jimmy the Saint wrote:
"Speaking as one of the many trapped in an urban area and likely to get wiped out by rioting leeches who got cut-off by Uncle Sugar, perhaps those of you who make it through the collapse can raise a small obelisk or something to our memories."
Keep yer hopes high. No sense getting beat by your own mental state. Think a way out, and make it a go. Keep your head while they lose theirs.
As for the economy going bust.... I'm no economist, and have a hard time with some of the numbers and cash flow issues. But, if the whole thing goes *pop*, I only hope that it's like a bad withdrawal. The country is like a massive coke whore, injecting Chinese products to the detriment of productivity and creating cash from thin air against ideas of true creativity. The financial high is powered by moral lows.
If she is placed cold turkey in the rehab room, maybe she'll come out better, as her national conscience is rehabbed right along side? Are there enough right-minded people, willing to lead and set examples to help get things back together?
I believe in a mixture of nationalism, some protectionism, and a dash of screw-the-rest-of-you-ism... insofar as it puts us first in our own agenda, and the rest where they belong - AFTER us. When we are good and ready, willing and able, and from our excess and not our need, THEN and only then, should we carry others along.
Where am I in prep? I'm busy stuffing stripper clip filled 7.62X54R ammo into bandoliers and then into the .30 cal ammo cans I picked up for a pittance from Cheaper than Dirt. It's been a long time since I'd done this, forgot what a chore it was. Now to find various places to cache those cans for fast and easy access. It's like getting a good game of scavenger hunt set up. Hah!
Loading brass fast as I can here Boss.
I'm trying to make my larder my primary prep project for 2010 but ordinance is so much more fun that I tend to get distracted adding to that.
In the words of Glenn Beck: "pray for more time". I do it every day.
Hello and greetings from England.
I found this blog while browsing for reviews of the Blizzard bag, and found your entry here...http://sipseystreetirregulars.blogspot.com/2009/02/praxis-blizzard-survival-sleeping-bag.html
Anyway, I digress. For several years we have had the same problem in the United Kingdom. Government spending on public services, welfare payments, and bailing out the banking system has led to astronomical levels of government debt.
Our national interest rate as set by the Bank of England (our version of your Federal Reserve) is currently at 0.5%, and has been at this level for 12 months now.
The United Kingdom is now perilously close to being unable to pay the interest on its debts, and also the dividends to be paid on government bonds (gilts).
Tax revenues have fallen as unemployment has risen.
If interest rates were to increase, we would find ourselves facing another economic crisis similar to that of 1976, when the UK government had to borrow and beg from the International Monetary Fund.
Unfortunately, this time the IMF has nowhere near the reserves needed to get us out of the "brown and smelly".
It's a knife-edge folks, and this time the whole house of cards may come crashing down.
The most annoying thing about this stupid sitation is that those that created the titanic mess will carry-on and not have to scrimp and save to get by. Those of us at the bottom of the pile will be the ones paying for their mistakes.
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