The Bottom Line On All The Frauds
Karl Denninger

You want to actually resolve what's facing our nation?

Then you need to do two things, and only two things.  One you will like, one you will not.  But if you only accomplish half, you accomplished nothing.

1. Restore the Rule of Law.  We're a Constitutional Republic, not a Democracy.  In a Democracy the 51% enslaves everyone else.  Are you black, hispanic, or some other minority?  In a democracy you're a slave.  Recognize this or make a huge mistake supporting any such move.  A Constitutional Republic is governed by the Rule of Law, which says that nobody gets to infringe your fundamental liberty interests, no matter who they are: Rich, poor, white, black or Martian.  Everyone who breaks the law is punished and for like crime one gets a like sentence.  If I rob you of $50,000 whether I do it with a gun or briefcase is immaterial.  Whether I take it one penny at a time or all at once is immaterial too.  In each case I must go to prison for doing it and what I stole must be returned to the maximum extent possible.
   
   
2. Recognize that mathematics does not permit compound growth on a permanent basis.  It cannot happen, therefore it will not happen.  Any claim that it can or will is a violation of the law as it is an intentional fraud.  This means that those who were "promised" pensions predicated on 8% growth were robbed.  It means those promised Medicare (with medical care going up at 9% a year in cost) were robbed.  It means that the growth of debt at a rate exceeding that of growth in the economy could not possibly be sustained on a permanent basis and every claim based on that was a fraud, including home price appreciation, stock price appreciation and more. 

That's it.  Recognize both of those two facts above and you've got a way to solve what ails this nation.  You have a path forward.  You have a path to truth.  If you fail to do this you have no path forward.  You have no truth.  You do not have anything that is sustainable and you are a participant in a ponzi scheme.

When you claim there is a "moral imperative" to provide that which is impossible you're wrong.  Not only is there no such imperative demanding that which is impossible is in and of itself immoral as you can only achieve what you seek by robbing someone else. 

Wake up America.  Our politicians love to divide into left and right because then we don't demand the truth, which is found in just two foundational principles as noted above.  Everything else (literally everything else) is a worthless debating tactic as it is not possible to achieve what is being allegedly sought.  You can temporarily steal from one person to pay another but when you are dealing with an exponential system even this does not succeed in the long term as eventually the money you seek to acquire from others exceeds the total amount of money available.

There are two - and only two - options available to us as Americans.  We can accept these facts or we can continue to play political games and our economy and political system will collapse.  This is not conjecture, it is a mathematical certainty.

In short, we must grow up.

Mr. Denninger is the former CEO of MCSNet, a regional Chicago area networking and Internet company that operated from 1987 to 1998. MCSNet was proud to offer several "firsts" in the Internet Service space, including integral customer-specified spam filtering for all customers and the first virtual web server available to the general public. Mr. Denninger's other accmplishments include the design and construction of regional and national IP-based networks and development of electronic conferencing software reaching back to the 1980s.

He has been a full-time trader since 1998, author of The Market Ticker (http://market-ticker.org), a daily market commentary, and operator of TickerForum, an online trading community, both since 2007.

Mr. Denninger received the 2008 Reed Irvine Accuracy In Media Award for Grassroots Journalism for his coverage of the 2008 market meltdown.

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