Were we able to remove the the terms republican and democrat plus the names of the Presidents from this slideshow we would have done so. Why? Why not just stick the truth out there? Because people do not like it. Also because our contention is that the presidents and the parties are bought and paid for. But if you actually get through the slide show before running in disgust, be advised the last slide mentions republican presidents under whom the debt was under control.Unfortunately our choices from either party this time will probably be the final nail in the coffin.
What we do know is that "Officially" we are now running over 15 trillion in debt. Which is really kind of Bogus because if you add up all the "off book" debt we are like pushing 200+ trillion. Whoops!
By law this year, about $500 billion of fiscal tightening that will occur in January 2013. Current law will undoubtedly be changed, as no party wants to see that much tightening in that short a period. However, how current law is changed is extremely uncertain, and that uncertainty could restrain activity toward the end of the year.
As we have addressed the laws of exponentialities in previous posts, here and others. you can expect the debt clock to run faster the faster it runs.
Maybe we are being a bit optimistic. but considering that a body in motion stays in motion and that for every action there is an opposite reaction we can only see three possible resultant scenarios.
1. A depression that will make the "Great" Depression look like a cake walk.
2. Hyper inflation to make the Zimbabwe and Weimar experience look like Financial conservatism.
or.....
3. We do as Iceland did and say, Screw it we are bankrupt. Because in fact, we are. At least for the lifetimes of most of us.
We pretty much discount number three because politicians and corporations have to much skin in the game. But if someone has can show us differently. Please feel free to do so.Add to Technorati Favorites
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