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Armageddon Dead Ahead
We are living through the death throes of an empire. For those citizens who understand what is occurring, the process is akin to being trapped in a taxicab where the meter is on and running at an infinite pace. We cannot get out; nor will we be able to pay when the bill is submitted. Government Duplicity The duplicity and outright lies of government are becoming more apparent. There are too many to list here. Here are a few: Favorable forecasts regarding the economy are cruel jokes to everyone, but especially to those unemployed and underemployed. The country is told that the economy is out of the woods and on its way, recovering from the worst recession since the 1930s. No one with an IQ higher than room temperature or the ability to see should believe that. The Obama Administration stumbled badly with their first major promise. We were told that if the stimulus package was passed, unemployment would not exceed 7%. It was passed and unemployment soared over 10%. The package had no promised shovel-ready jobs and turned out to be the biggest pork bill ever. Virtually nothing went to Main Street to help individuals. Unions, government employees and other Democrat constituents were the primary beneficiaries along with the banking industry. President Reagan, like President Obama, inherited a difficult situation when he entered office. To the right is a comparisonof what happened under Reagan and under Obama. The chart compares unemployment rates. Changes in the manner in which unemployment is currently measured favorably distort the unmitigated disaster that is Obama’s economic policy. Adjusting data to the same basis, would make the comparison even worse.
The projections of Federal Reserve Chairman Ben Bernanke are no better. He is the only one who might be able to compete with Administration economists for worst forecaster of all time. Again, without checking every major item, I think he is batting 1,000 in terms of incorrect projections. YouTube and other websites provide ample evidence, mocking his dismal forecasting record. Despite record stimulus, both fiscal and monetary, the economy has not improved. The declaration of the end of the recession was reminiscent of George W. Bush’s premature claims of victory in Iraq but was a necessary part of of the pretend and extend game that government must play. There is no escape from an economic apocalypse, hence much of the duplicity. An Economic Collapse Is Unavoidable
The economy continues to worsen because we have squandered and continue to squander valuable resources in an attempt to avoid doing the right things. The political class has chosen to protect their positions by pretending that matters are getting better. The economic system is now so burdened with debt, price distortions and asset mis-allocations that we are on the verge of an economic collapse. When this happens or what of the many incidents that might trigger it is anyone’s guess. The best efforts of both government and their media cronies are devoted to covering up what is truly happening in the country. Statistics are likely being manipulated. Even so, they are so bad that the Administration and the media must sugar-coat them. As matters deteriorate, official claims only appear more incredible. The Kool-Aid drinking dullards may be kept in the dark and in the fold by such techniques, but independent thinkers are not. For the rest of us, the internet provides real analysis. ”Agenda analysis” is obviously practiced on the internet, but there is no pretense of objectivity. The major pundits and analysts do not try to hide their political biases. The internet is not monolithic. Diversity and economic skills exist. The same cannot be said of the mainstream media. Much of the economic analysis on the internet is first-rate, certainly surpassing the mainstream media and, in many instances, the economics profession itself. One of the reasons for the weaknesses in the professional economics class is that many have been “bought” via government subsidies and grants. Even newly minted economists are corrupted through the tenure process administered by their academic whore superiors.
Funded debt is only part of the story. Not included in US debt is another $7 Trillion of Federal guarantees for the debt of FHA, Fannie and Freddie. The latter two continue to hemorrhage as mortgages continue to default. Also not included are the promises associated with Medicare and Social Security. These programs alone, as they currently exist, represent a $100 Trillion liability. The total net worth of the entire country is less than $60 Trillion! Confiscation of every private asset would still leave these programs insolvent and the country penniless. The magnitude of the debt is overwhelming and impossible to grasp. Suddenly a billion dollars or another $100 billion mean nothing. There is so much happening so rapidly that the average American has no idea of the state of the country. Few understand that the situation is hopeless, regardless of what government does. Defaults, both private and sovereigns are coming. The laws of mathematics say there is no solution. Nothing is going right! Virtually every metric or important trend is disappointing and becoming worse. |
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The funded debt of the US government has now reached $15.3 Trillion or 100% of GDP. This ratio is already worse than some of the sick European countries and it is deteriorating at a rate of $100 billion plus per month. Spending is completely out of control and President Obama will soon request another raise in the debt ceiling.