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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: miraje who wrote (524356)	11/24/2012 2:15:39 PM
From: LindyBill	Read Replies (2) \| Respond to of 793917

My vision of the future now is: "look at Europe." We are on a way to a Social Democracy, with permanent high unemployment, lots on the dole, and a stagnant economy. The big difference I see, that will help out a bit, is that we will never be as unionized as Europe.

To: miraje who wrote (524356)	11/24/2012 4:01:34 PM
From: unclewest	8 Recommendations Read Replies (2) \| Respond to of 793917

It will take a large dose of cold water reality to wake people up. What's inevitable is that one of these days Uncle Sugar will announce "account overdrawn, no more available funds" That day will be catastrophic. That could be the day: The medicare and medicaid system collapses Soldiers no longer get paid Military pensions no longer get paid. Fed Govt civilian pensions no longer get paid Fed Govt civilian employees no longer get paid Food stamps no longer get paid The public housing sector collapses Federal funds to states no longer get paid Federal contract payments to corporations no longer get paid State payments to bond holders no longer get paid State employees and pensioners no longer get paid State payments to corporations no longer get paid. etc. etc. etc. I don't think it has to be initiated by the feds to suddenly rage out of control. I think if state governments initiate similar cuts before the feds, that will be a sufficient kicker. It won't take 100% cuts. A substantial cut across the entire range of expenses and entitlements will be enough to fuel panic. An increase in interest rates will do it. Out of control inflation will do it. Another and bigger rush on bank and market deposits will do it. One or more exploding nukes will do it. What and who does get paid won't matter much. On that day, a gun with ammo will become more valuable than any amount of money. Obama and his minions like to speak in terms of 10 years. Presently the US is borrowing $140 Billion every month. That is $1.68 Trillion annually. At that rate, our national debt doubles in 10 years to over $33 Trillion. I do not believe America, as we know it, can feed that pig much longer. Some of these scenarios are beginning to be played out at local and state level. How fast can they accelerate? is my only question. Some politicians say it won't happen. But they don't ever explain why not. Here is something else to contemplate: In Barron's 21 March 2011 issue, the Federal Reserve announced that for the first time in history, the sum total of all US paper dollars and base-metal coins in circulation (CinC) has exceeded $1 trillion dollars. If true this means the USA owes 16x more money than it has in circulation, and every year continues to add the same amount of money it has in circulation, to debt. I claim no genius when it comes to money. But I did (unknowingly) live my life by the concepts in the book The Millionaire Next Door and doing that fulfilled my hopes and dreams. Today, I know from personal experience, one sentence in that book applies to the US Government. "You cannot simultaneously spend it all and save money."