A World of Hurt

13 comments

Posted on 7th November 2012 by MuckAbout in Economy |Politics |Social Issues

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Our debt crises.. Our welfare crises. You hear it every day.. How do we deal with it? What can we do to solve it? What will we do to get it behind us? Even temporarily?

What will save us from a Supreme Court that has legalized “elections to the highest bidder” and a President and Congress that has trashed the Constitution at every turn? Who will save us from a spiral of every higher unemployment? Since the Government can’t “fix” anything, only one thing can.

In one word, WAR.

Will going to war truly solve our economic malaise? Our exceptionally negative Debt to GDP ratio? The counterfeiting of currency and credit by the Federal Reserve? The continued trashing of our Constitutional rights?

Of course not, but it will accomplish one critical thing. It will frighten the vast majority of the non-thinking (ever poorer people) into getting behind the Federal Government in a “patriotic” manner that convinces and coerces the same uninformed non-thinking mass of middle and lower class American citizens that “sacrifice” and “doing without” is both the appropriate and least thing they can do in order to support America’s efforts to fight a War.. This will be encouraged and demanded in all the old fashioned ways by the Federal Government.

Who we fight is totally unimportant and not germane to the point (but I’ll speculate later). The fact is that the Federal, State and local governments of this country have over spent and promised themselves into a totally non-tenable position of being completely unable to fulfill commitments made to the general public, retirees, union members, government, private and public employees and welfare recipients. With 47% (probably 50% now) of the general population receiving some sort of Governmental assistance or payments how could they cover the bill other than print money to do it? Who else would pay for it? How about 50% of the population works full time, if they could find a job, to pay the other 50%?? I don’t think so..

These promises include Medicare with unfunded liabilities of $39 trillion(1), Medicaid at $84 trillion(2), a mere $74 billion for some 150 plus programs for “school aid”- a real bargain that(3), unfunded Federal Employee retirement fund equal to $1.6 trillion(4), and it doesn’t count the over 30% of the Federal budget that is spent supporting a military that is multiples in size of all the other nations of the world! (PS: That 30% also does not include the multitude of huge corporations that feed off the military to perform R&D, build weapons and ammunition and drones and such for the military’s use!)..

This cash is furnished, in a significant part, by the Federal Reserve which purchases – today – more than 40% of the Treasury Bonds and Bills issued by the U. S. Treasury to fake the assets (in the Fed books) to back our fiat currency in order to pay all those unfunded liabilities, military budgets, contractors, federal employee salaries, foreign aid, educational loan guarantees (that are about to default as the next bubble), bailouts to banks who would fail without them and everything else you can possibly think of. But don’t want to think about.

I’d say things are far beyond control. These small insignificant sums are just a sample of the few hundred $trillions of the total unfunded liabilities of the Federal, State and local governmental entities of these sorry wrinkled, scabby, busted United States. When you add them ALL UP, it totals over $120 trillion and climbing. This does not count the liabilities of mortgage backed securities (which are being purchased monthly a $90 billion rate by the Federal Reserve from Zombie banks) or the literally hundreds of $trillions of credit default swaps and other phantom securities issued by those zombie banks and insurance companies, who collect fees with every sale and know, that, if the counter-party can’t pay off, well, the Federal Reserve will! After all, they’ve paid off on everything else the crooked the banks have done, right? Anyone in jail or prosecuted? Nope! I hope Eric Holder sleeps well at night.

Can this absolutely obscene pile of debt ever be paid off? Of course not. It’s a Grand Oversized Cancerous Ponzi Scheme of massive proportions and is doomed to collapse upon itself sooner than later.

Ah, you say! Collapse is never going to happen in our America! We are too smart, too industrious, too vigorous and besides, the Federal Government is way too intelligent and too powerful to ever allow that to happen!

Ha! The jokes on you! It not only can collapse, it will collapse. The only question is when, not if. We, as a nation of “consumers” are no longer too smart, too industrious, too vigorous, too responsible or too self-reliant to fall on our collective faces.

History is literally stuffed full of fiat money collapse (debt default) from ancient Roman coin clipping to Zimbabwe’s 6.5 sextillion percent inflation rate in November, 2008. There is no historical exception to the rule that once a currency is converted to a fiat instrument (i.e. printed with no commodity backing), it ends up being inflated and depreciated to its’ intrinsic value; i.e. the value of the paper it’s printed on, or less.

The U. S. Dollar is a fiat currency, backed by nothing and will indeed end up being worth the paper it’s printed on.

It matter not one whit whether you use the term “printed” money or “credit” money, it’s all the same. Digital, paper or plastic, anything that is used to purchase real hard goods of any kind from land to toilet paper is “money”. As the money supply expands and loses value and everything costs more to bring home in a bag or stake out as a house foundation, you are being taxed, continuously and stealthily with nothing you can do about it. How do you vote “NO” on inflation? How do you vote “NO” on the subject of your purchasing power being reduced day after day, week after week, year after year? Why does the American public put up with such fraud and outright stealth stealing and dishonesty by the Federal Government?

#1. Because most of the uninformed “general” public has as much knowledge of economics as a tick. All they know is the price of gasoline, beer and their smart phone bill. Sorry, but the truth hurts sometime.

#2. The American public can no longer agree on the time of day, much less take sides on a vital issue such as printing money! Almost half of the “public” gets handouts from the Federal Government anyhow, so why should they grump? What they really deserve is going to be what they get.

So it’s tough to defend yourself. You can purchase real assets (like agricultural land, gold or silver) or you can get mad. Sooner or later, there will be a sufficient number of citizens of this totally busted United States who get mad that it will attract the attention of the Powers That Be.. The Elite. Those who pull the puppet strings that make the President, Congresspeople and the Judicial System dance.

Then comes trouble. Cars burn, store fronts get windows broken, tires are lit off in the street, a few banks are knocked over and Walmart closes some stores because the shop lifting gets too much to bear on their bottom line. The natives grow restless and torch a few houses and buildings. We look Greek to the rest of the world. Horrors!

The Elite does not appreciate nor desire more than a few percent of the citizens to get upset – after all, about 10% of the population drove the American Revolution back in 1776 – the rest being either Loyalists to the Crown or just typical disinterested people who wanted to be left alone to get on with it. 10% was not a lot of people back in 1776. Today, 10% would be about 3.3 million rabble-rousers that could make a lot of noise, break a lot of windows, roll over a whole bunch of cars and generally make a nuisance of themselves.

So, as far as The Powers that Be are concerned, “something” must be done.

Since the country is bankrupt to start with, we now have reached the point of no return. Inflation is probably running higher than tolerable (or the 10% wouldn’t be ticked off!), cities are weeping about their budgets and many are “bankruptured”, perhaps a state or two is busted and awaiting bailouts that will never come.. What to do? What to do?

Ah Haa! The Power’s That Be come upon a solution that has provided a psuedo-bail out for many a country throughout history that was high and dry and flat broke (think Germany in 1933). Think America in 1939. History begins to echo.

Let’s start a War! Lot’s of targets out there. Syria’s still being a pain in the butt but we can’t touch Russia or China – they’re nuke city. But we need to find someone who is beatable “over there”, after all, we sure don’t want to fight a war on United States’ soil. After all, the last time we did that, we killed over a half million citizens and it took almost three generations to get over it and, by the way, we’re still suffering the aftermath of that civil war today.

I know! Let’s go after Iran and Syria both! That way, we can perhaps drag Turkey into it and not really tick off anyone else over there that we haven’t already made froth at the mouth! Saudi Arabia, being Wahabi Muslim anyhow, and everyone else in the area being Sunni Muslim, no one will object too strenuously if we kill off some Shiites if we’re careful not to blow up too many mosques..

Perhaps a few “false flag” situations are staged to get the American public’s attention and suitable propaganda is broadcast to them that makes a convincing case that “if we don’t fight this war, civilization is lost” or some such baloney.

Plus, the Powers That Be figure, this kind of WAR can capture the imagination of the millions of the unthinking masses that dwell in the middle reaches of the U. S. A. . If we tell them often enough and loud enough and long enough, they will believe that this WAR is necessary for their own wellbeing as well as freedom of the poor and oppressed, those who are persecuted for their religion, human rights, women’s freedom and education, blah, blah, blah ( shhhh!Never mention gasoline or oil or the fact we’re broke!). We can rally the ignorant dummies into accepting gas rationing, food rationing, perhaps a few brown outs here and there for good measure and make sure that all the Main Street Media stress that anyone not for this WAR is unpatriotic and not deserving of any handouts from the Federal Government. Besides, if you’re not for us, you’re against us and we just might throw you under the jail using NDAA to imprison you as a terrorist! Not to mention monitoring what TV channels you watch and who you talk to about what on the telephone!

Also, as a good upstanding citizen of the U. S. A., don’t forget that saying anything or doing anything that leads the Government to believe that you are not 100% behind this Just and Necessary Military Action will result in great displeasure upon you – far beyond an ordinary grope at the airport – and you will be labeled non-patriotic and banned from most of the rationed goodies we’ve let everyone else have. Bad on you if you don’t think like your Government does!

Oh, and by the way, because of the WAR EFFORT, we’ll have to cut down on Social Security payments, Medicare, Medicaid, also Welfare, Unemployment, Education Assistance, School Lunches (and about a thousand other give-aways) in order to support our military in fighting this just and righteous WAR. You may also have to put up with gas rationing (since no one will take dollars for oil any more — shhhhh!) and grocery rationing (Chile just said “No dollars for grapes!” shhhhh!) but it’s all for a great NATIONAL CAUSE of WAR which we have to win because (1) “because” and (2) “because” and (3) “because” this too!

Do you think this is all too far fetched to believe? Sure you do! Just like the German’s believed in 1933 that when Hitler came to power, well, he wouldn’t do anything that went against fairness and goodness. Oh, he might toss a few Jews into jail to fulfill a campaign promise – but nothing evil, right?

I’m sorry to disabuse you of your belief, but Governments at all levels and all times has one thing in mind; their continued survival and command of power to control you and you and you. Once in power, power is what they care about and power is the dope that intoxicates those Elites and Powers That Be because power is the thing that allows those same Elites and Powers That Be to rape and pillage the financial and industrial systems to their benefit.

Their only desire, upon getting such power is to dictate to all those below them on the hierarchical ladder, as much as possible, what they do, how they do it, when they do it and even why they can’t do it and, oh by the way, pay me while you do it.

If you don’t believe this or understand it, you have not been living in these United States for the past 40 years. Ever since 1971 when “Tricky Dick” Nixon slammed the international gold window shut, defaulting on United States international obligations to redeem our dollars in gold, we have been on the ever steepening slope to insolvency. That one 1971 default (check the charts!) has led to our downfall, removing the very last limiting factor for spending more than we produce that Congress and the Executive Branches of Government has taken advantage of to the extreme ever since.

Debt started to accumulate in 1972 and has increased at an exponential and hence unsustainable rate ever since. At the moment, it rises almost vertically and will, in the near future, S-T-O-P. At that point comes civil unrest and a knee-jerk reaction leading to WAR to distract the masses. “Shared” sacrifice (and reduction of “freebies”) will be the word and while men die, the can will be kicked down the road just a little further.

 

And that will fail too.

End

(1)http://cnsnews.com/news/article/medicare-faces-unfunded-liability-386t-or-328404-each-us-household
(2)http://dailycaller.com/2012/07/16/report-federal-unfunded-liabilities-total-84-trillion/
(3) http://www.downsizinggovernment.org/k-12-education-subsidies
(4) http://usatoday30.usatoday.com/news/washington/story/2011-10-11/federal-retirement-pension-benefits/50592474/1
(5)http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe

13 Comments
  1. ThePessimisticChemist says:

    @MA – Love the article. A little light on the doom though. Remember, we aren’t all cheer and cupcakes around here!

    Actual quote from my facebook feed this morning:

    “….as a nation we have been in debt since 1776. But now all the sudden it’s a big problem.”

    This kid barely graduated high school. He is a forklift operator who (thanks to his union) gets paid almost as much as a lot of college graduates in this area.

    His vote is worth as much as mine. As much as yours.

    The older I get, the more I think there needs to be some sort of minimum requirements for voting. Administering the same test as immigrants get would be a good place to start. (please note, I mean legitimate immigrants)

    Well-loved. Like or Dislike: Thumb up 6 Thumb down 0

    7th November 2012 at 11:36 am

  2. Math is Hard says:

    10% of 310 million is 31 million, not 3.3 million, that is 1%, math is hard……

    Like or Dislike: Thumb up 2 Thumb down 1

    7th November 2012 at 11:38 am

  3. Roysyl says:

    The problem is population overshoot and a finite supply of stored energy (fossile fuels). War is not a solution as it wastes resources. More people died from the Spanish flu than were killed in WWI. Monsanto and big Pharma are working the problem.

    Like or Dislike: Thumb up 2 Thumb down 0

    7th November 2012 at 12:01 pm

  4. Eddie says:

    Well said, MA. It makes me sick to think about us in yet another war, but it does seem likely to happen.

    Roysyl

    I agree on the “problem”. Hope your wrong about the “solution”….

    How many tons of weapons grade smallpox spores did the Russians misplace back in the 90′s? That stuff is still somewhere. That would do it.

    Like or Dislike: Thumb up 3 Thumb down 0

    7th November 2012 at 12:19 pm

  5. Yojimbo says:

    Roysyl

    I agree that TPTB may try a solution involving a virus or bacteria, or perhaps something in vaccines, to cause a die-off of a significant number of the population.

    The funny thing is this brings to mind the recent story about the place in Massachusetts that “accidentally” spread the meningitis virus to people in their “compounding” of steroids…

    Maybe that was a test run

    Like or Dislike: Thumb up 3 Thumb down 0

    7th November 2012 at 12:46 pm

  6. Muck About says:

    @Math is hard: OOops… Typo city at 2 AM..

    MA

    2Q==

    Well-loved. Like or Dislike: Thumb up 9 Thumb down 0

    7th November 2012 at 2:27 pm

  7. LLPOH says:

    Thanks, Muck. I truly hope war is not on the cards. But when they have all of those toys, and all of that money to spend, and all of the economic and social problems to contend with, well, it must be a real possibility.

    Well-loved. Like or Dislike: Thumb up 5 Thumb down 0

    7th November 2012 at 7:21 pm

  8. OUTTAHERE says:

    @TPC
    One way to level the voting field is make it requirement to own some type of property or business in order to be able to vote. PERIOD. Unfair? No more so than making me support 50% of the population who don’t work yet continue to vote for whichever person is promising them more freebies. That is a formula that I guarantee will not work, at least not for very long.

    Like or Dislike: Thumb up 3 Thumb down 0

    7th November 2012 at 7:43 pm

  9. Kepi says:

    Actually, I’d say war is the one thing the US and no other industrialized nation can afford right now. Aside from the US, all other industrialized nations are at risk for a negative birthrate soon. The US itself is expanding, but minimally. Killing off a percentage of adults won’t leave enough people to avoid the negative birthrate doom, and killing off another nations would ruin their financial viability, and in a global context that the powers that be operate in, that’s unacceptable. War would utterly cripple all sides, unless we went to fight a nonindustrialized nation, and there we’d be screwed in terms of being outpaced by a shrinking dollar value during another war time expendature.

    Like or Dislike: Thumb up 1 Thumb down 2

    7th November 2012 at 7:44 pm

  10. Eddie says:

    No nation can ever really afford a war. That’s why we have the bond market.

    Well-loved. Like or Dislike: Thumb up 7 Thumb down 0

    7th November 2012 at 7:55 pm

  11. chiefdarkcloud says:

    Hey – All seeing and all knowing Admin smelled a rat “No longer Uncle Sam’s bitch” and ran that trouble making ‘government plant’ right the fuck out of Dodge !

    Like or Dislike: Thumb up 2 Thumb down 0

    7th November 2012 at 8:20 pm

  12. Muck About says:

    The problem the U.S.A. has with a military that’s 10X the size and likely 50X as effective as the next guy coupled with a military/industrial complex that churns out smart weapons, ever more effective drones, tanks, rifles, “smart” RPG’s (yes there is such a thing!), down to crowd control IR broadcasters and billions and billions of $$$ worth of R&D is this: When a human being has a tool of any sort, he will use it.

    Over simplified? Not one bit. We have an overly huge military, therefore we will use it. How overly large? Check out the defense budgets illustration below..

    defence-budgets-and-expenditure—iiss.jpg

    Now tell me a good reason why ours is so big! One thing it did accomplish; the downfall of the old USSR and its’ empire.

    The U.S.A. has superb natural defenses as we have oceans on both sides of our continent.\, a friendly partner to our North and a stupid incompetent one to our South. If we just manned up to defend ourselves, we’d have 25% of our current military strength with emphasis on naval forces.

    No, the reason we have such a huge military presence in over 1,000 military bases in (and this is not clear) from 68 to 120 foreign countries. The actual inventory of foreign bases and locations thereof are all over the park – on purpose, I’m sure.

    But the facts remains: If we have a tool – and the military and its’ accompanied industrial complex are tools – we will use it. The mere size of that tool labels it “offensive” as opposed to defensive and it is put together in such a way to efficiently take war fighters, their logistics complex and supply lines TO the enemy, regardless of where or who he is.

    And we will continue to do it…

    MA

    Like or Dislike: Thumb up 2 Thumb down 0

    7th November 2012 at 1:13 pm

  13. Chicago999444 says:

    OUTTAHERE, I’m already subsidizing “property owners” enough, in that they get to write off the interest on their oversized mortgages plus their real estate taxes, too.

    I, however, don’t get to write off my landlord’s mortgage interest or real estate taxes. My apartment alone pays about $2400 a year in real estate taxes.

    I am a market-rate renter and job holder, and, as such, am an equal citizen. I am not a member of the FSA…. unlike “property owners” who not only get the indirect subsidy mentioned above, but are also getting the benefit of numerous other subsidies designed to keep property values inflated.

    Sorry, but I think they have enough to say already without stripping me of my right to vote. Sorry, I know too many home owners who are members of the FSA, mainly because they zero out on their income taxes because they have huge mortgages AND huge families.

    Like or Dislike: Thumb up 1 Thumb down 0

    7th November 2012 at 7:55 pm

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