Regardless of the European financial situation, the U.S. economy *will* collapse - it's only a matter of when.
Simply stated, we have unsustainable debt and no political will to do what it takes to pay it off. In absence of doing anything (which seems to be the political strategy du jour), we are looking at hyperinflation or default - neither which is good.
This administration and its MSM lapdogs will be giddy that they will be able to blame the U.S. collapse on the European collapse.
At the time of Lehman Brothers' bankruptcy, Ben Bernanke assure us subprime risk was "contained."
He was right--it's contained in the balance sheets of major European banks. ;^)
Defaults on the sovereign debt of Greece is a near-certainty. The holders of this debt (primarily European banks) must accept a write-down of their loan portfolio.
This will expose the subprime fraud that US regulatory agencies allowed to be foisted off unsuspecting European banks.
A terrible economic contraction will unfold when these bad assets are marked-to-market and any possibility of saving Italy and Spain from default will be lost.
Damn! If I were a communist, this would be working out perfectly for me. All the capitalists lose their money, everybody else loses their freedom and I get to be in charge because my media cohorts get to tell the story. We'll make sure they get double or even triple rations and new Volts for all the managers.
When the FSA is no longer able to use their EBT cards, then the you-know-what will hit the fan. The rich leftist elite will beat feet out of the cities to their enclaves in Sandpoint, ID, Ashland, OR, Jackson Hole, WY, or some haven in Costa Rica or Patagonia. It will be up to the remnant to protect their familes and communities.
4 comments:
Regardless of the European financial situation, the U.S. economy *will* collapse - it's only a matter of when.
Simply stated, we have unsustainable debt and no political will to do what it takes to pay it off. In absence of doing anything (which seems to be the political strategy du jour), we are looking at hyperinflation or default - neither which is good.
This administration and its MSM lapdogs will be giddy that they will be able to blame the U.S. collapse on the European collapse.
At the time of Lehman Brothers' bankruptcy, Ben Bernanke assure us subprime risk was "contained."
He was right--it's contained in the balance sheets of major European banks. ;^)
Defaults on the sovereign debt of Greece is a near-certainty. The holders of this debt (primarily European banks) must accept a write-down of their loan portfolio.
This will expose the subprime fraud that US regulatory agencies allowed to be foisted off unsuspecting European banks.
A terrible economic contraction will unfold when these bad assets are marked-to-market and any possibility of saving Italy and Spain from default will be lost.
MALTHUS
Damn! If I were a communist, this would be working out perfectly for me. All the capitalists lose their money, everybody else loses their freedom and I get to be in charge because my media cohorts get to tell the story. We'll make sure they get double or even triple rations and new Volts for all the managers.
It's good to be their king, er... commissar.
When the FSA is no longer able to use their EBT cards, then the you-know-what will hit the fan. The rich leftist elite will beat feet out of the cities to their enclaves in Sandpoint, ID, Ashland, OR, Jackson Hole, WY, or some haven in Costa Rica or Patagonia. It will be up to the remnant to protect their familes and communities.
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