Wednesday, October 5, 2016

"The Story Nobody is Reporting On"


That's the title of Karl Denninger's latest blog post.  In it, he reiterates what he's been saying for years (and I've been doing likewise).

That's right -- the government intentionally destroyed almost 8% of your paycheck and your savings last year, running a $1.423 trillion dollar budget deficit, which is roughly equal to the worst of the "great recession" when tax revenues went through the floor.

Today there is no such "tax shortfall" excuse.


The breakdown of exactly where the ugly is coming from will be published next week.  I already know what is in there because I've been following the monthly treasury statements all fiscal year, but wish to report final "as tallied" facts -- and thus will have another post at that time.

Let me be clear: On the arithmetic if we do not stop this now within the next 4-5 years -- that is, within the next Presidential term -- our government will collapse, our economy will collapse, our health care system will collapse and both the stock and housing markets will collapse.  This is not politics, it's arithmetic.  And the worst part of it is that I am utterly certain that the "references" count, along with the "views" count on this article will both be a fraction of the politically-oriented articles I've recently posted.  That the real end of our way of life in America, a threat that is obvious, mathematically certain, not very far in the future and yet avoidable if we act now fails to garner any sort of serious attention is the real outrage folks.

There's more at the link.  It's essential reading, IMHO.

This really is the crux of this election.  If our political leaders don't stop their deficit spending and stabilize our budget, this nation - and almost every nation in the First World, for that matter - is headed for a collapse of monumental proportions.  Mathematically, it's inevitable.

Peter

6 comments:

Old NFO said...

Scary, to put it mildly...

Rolf said...

And here is where I am hit with ambivalence. I really, REALLY don't want to see Hillary in office. But DC has been kicking the financial can for so long that it must blow up soon, and if Hillary takes the White House then it'll all land at her feet, and she will be the one to get the Hoover reputation. If Trump wins, all the pent up stupid that will get unleashed if/when he tries to do the right think will come crashing down on his watch, and the media would love, Love, LOVE!!! to blame everything on the Trump and the Stupid Party, so that everyone runs to the Dems as saviors. And the the Dems, of course (being Dems), will make it worse and blame the Rs for not going full 'tard along with them. I really, REALLY hope Trump wins, gets 4 SC nominees, and has a REALLY good PR campaign to get the truth of the situation out before a false narrative can be hung on him to crucify the national politic with.

tweell said...

But where's the graft in fiscal sanity? How can our government endure without lots of money to steal? Think of the politicians!

JW MONDAK said...

I THINK THATS THE PLAN ALL ALONG...IS TO CRASH THE SYSTEM...

Dan said...

While a default and collapse must happen eventually under the current paradigm many
would be amazed at how much longer those in charge can keep the house of cards propped up. One reason being the dollar is still the benchmark currency. That gives those running the show a powerful tool to keep the charade going. Another issue is every person involved worldwide is scared shitless of what default means. Nobody survives it unscathed so all of them are turning a blind eye to reality. If we ignore it it isn't real. Eventually something is going to happen to pop the balloon and usher in the collapse. Might be this year, might not be for a decade or more. The collapse should have happened a decade ago in a rational world....but we no longer live in a rational world.

Bob said...

Dan sez:

"Might be this year, might not be for a decade or more."

Obama was hoping it happened by now. IMO, he wants to declare martial law after a collapse, suspend the elections, and set himself up as president for life.

Since this inevitable collapse does not appear to be manifesting itself, those insane lunatics figure a war with China and now Russia will fill the bill.

These people are truly insane.

Prepare for at least 90 days of pure mayhem and disaster.