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can not post link (got via an e-mail). Good read.
DEBT CEILING OR DEBT FLOOR?
Doug McIntosh
You realize you are living in strange economic times when the Democrats chastise the Republicans for "fiscal irresponsibility." Such was the case when the House of Representatives finally got around to raising the funny money bar by another $800 billion. Although the vote of 208 to 204 might seem to indicate a chance of fiscal sanity in Congress, a closer look reveals the true reality. President Bush called the bill "important to protect the full faith and credit of the United States." The day is soon coming when votes like this, or statements like that will be laughed off the global bond markets, hounded out of Wall Street and run out of town swirling feathers. Count on it. Even as this fiscal farce was playing out the real verdict was coming in: record precious metals prices and record lows in the fiat funny dollar.
I have written many, many times on the folly of the Federal Debt. I have written many, many times on how we got that way and why it matters and what the likely result will be. All to no avail as the fiscal fruitcakes in government just cruise right along. There will be no reform; there will be no alternatives to the grim consequences of generations of fiscal folly. The articles I read didn't mention the total amount, so I'm guessing our debt limit is now around $8 Trillion dollars, some 80% of our total economic output for one year. I don't even think listing the usual figures, or what I call the usual economic suspects, matters at this point in the game, the end game. The United States of America, in economic terms at least, is being judged in the currency markets and in the bond markets and on the stock markets. And the judgment is not very pleasant for the economic bums in Washington D. C.
Paul Simon, he's the Simon in Simon and Garfunkel, once wrote a song with a line, "One man's ceiling is another man's floor." A very good description of modern apartment living I might add. In economic terms I would amend that to one man's debt ceiling is another man's bottomless pit of misery. I have no idea how high is high. I have no idea how much longer this "full faith and credit of the United States" scam can continue. Any more than I have any idea how long Mr. Magoo can avoid raising interest rates like Mr. Volcker did in 1980. I have no idea how much longer this fiscal farce of endless debt, endless gimmicks and endless lies can continue. But I will tell you this dear reader, my judgment is our economic doom will come from outside our borders. I feel the economic shell game will go on until the foreigners cut us off. The day is coming when they will kick our drunken butts out of the Funny Fiat Money Saloon and throw us out into a mud puddle. The dazed American Sheeple will wonder what has happened.
The USA money should say, "I spend; therefore, I am." I hold certain economic truths to be self evident. The reason they are self evident is because history is littered with the bones of those who ignored them, mocked them or listened to experts telling them they don't matter. It is pathetic. It is disgusting and most of all, it is useless for the USA to pretend it isn't bankrupt. It is like an aristocrat pawning the family jewels to pay gambling debts. We are undone economically.
Not that you will find any open admission of this fact in the downstream press in the USA. The foreign press sees things quite clearly. They clearly understand the USA is nearing the point of being openly derided in the economic markets. I mentioned Mr. Magoo had to sell over 50 billion dollars of government debt to clear a measly 3 billion. In one of the World War Two books I read, they had a story about how Hitler, in March of 1945, heard the Rhine River had been forded by the American Army and they were pouring into Germany. He threw a temper tantrum and ordered several divisions of tank killers to fight them. Only, Adolph didn't have divisions anymore. At one time, he had sent 4,000 tanks and 10,000 tank killers into battle; now, he was reduced to four, yes four tank killers against several thousand US tanks. The USA is quickly reaching that point economically. It is written in the bond markets, the currency markets and the stock markets. We here in the USA, like Hitler, don't seem to understand the true economic situation we face.
THERE IS NO MONEY IN THE USA TODAY.
IT IS DEBT, CREDIT AND FANTASY
It is fantasy at all levels of government. It is fantasy at all levels of corporate America. It is fantasy for individuals. It is fantasy for families. Everywhere I look in the USA I see fantasy and still more fantasy. I see a government system pretending it still functions in the economic arena. They think this because the downstream press doesn't call them to accountability. The reason they do not do this is because the media is owned by the banks. The reason the money supply is increased endlessly by that economic terrorist called Mr. Magoo is because the system will collapse without it. And guess who owns the FED? The same banks that own the media, own the courts, own the politicians and own the entire country. I tell you plainly, the USA has been sold; bought and now the bill is coming due. It is only in the mental delusions of the vast majority of the United States Sheeple this economic farce can continue. The only place suitable for the United States and its fruitcake economy is the padded room at a mental hospital.
Harsh, you say? Well, read the following quotes from the article I read. The mere fact they have been made tells me they know what is going to happen to the US dollar over the next few months. I could add the fiscal year began October First, but they never get the budget done on time, so that is nothing new. It is not like it matters anyway, since Mr. Magoo just hits the print button on his computer over there in FED land. The usual Treasury Department warning it was running out of ways to keep the debt limit from being breached. The economic version of trick or treat from Mr. Magoo. Of course, they aren't going to let government bonds go into default. You, I know what that means for the status quo. And of course, they waited until after the election to raise the debt limit. And of course, there was vicious political wrangling, death defying partisanship and devious positioning for the 2006 Congressional elections. Elections with a Democratic theme of fiscal responsiility. Can somebody please get me some kind of drug that will blot out Democrats talking about fiscal responsibility and Republicans acting like Democrats in the economic sense anyway?
It is true President Bush has raised the debt ceiling three times since 2001 and ran an "official" budget deficit of $413 billion. It is my view this is a REPUBLOCRAT issue. They are all economic incompetents and frauds the whole lot of them. I do not see the issue as a political issue at all. It is an economic issue, deficits and debt, embedded in a moral issue. By that I mean endless debt and credit and the lies and fraud that support it are moral failures of the American political system. Moral failures of the leadership elite and the general populace. And it is my personal view, this full faith and credit crap, yes crap, will go down in flames when the foreigners make a moral judgment about the American economy. The point of all this debt and budget deficits is the ABILITY to repay it. Further, the moral willingness to repay it. And finally, the mental will to repay it. The core issue on the budget deficit, the economy and the Federal debt is a moral judgment on whether the United States will pay off its debts. And it is this single, ruthless, brutal statement that will take out the US government, take out the US economy and take out the United States as a superpower. This is isn't about economics in the conventional sense of the word. It is about how moral failure expresses itself in economic terms and has political and military results. I just don't think they get it. I have come to the conclusion the people, the leadership and the elite really do think they can keep this debt ceiling fantasy going on endlessly. If you ask the question at what point does the ceiling become a floor, the eyes glaze over.
The day will come when none of the mind games in the House or Senate on debt, or budget deficits or any thing related to the economy will matter any more. On that day, Argentina will look like a Sunday stroll in the park with ice cream cones. Mark my words. When the USA economy goes down, it will take the social structure down with it. What do you think all these people are going to do when the status quo implodes and the checks stop? Answer me that when you say all this economic stuff doesn't matter and I am just a negative, cynical crank. I live in a major city and I KNOW what will happen even if you do not. Perhaps, that denial, of what the economic consequences will be, is the greatest illusion in the USA today.
I have spoken.
Doug McIntosh
5 June 2005
can not post link (got via an e-mail). Good read.
DEBT CEILING OR DEBT FLOOR?
Doug McIntosh
You realize you are living in strange economic times when the Democrats chastise the Republicans for "fiscal irresponsibility." Such was the case when the House of Representatives finally got around to raising the funny money bar by another $800 billion. Although the vote of 208 to 204 might seem to indicate a chance of fiscal sanity in Congress, a closer look reveals the true reality. President Bush called the bill "important to protect the full faith and credit of the United States." The day is soon coming when votes like this, or statements like that will be laughed off the global bond markets, hounded out of Wall Street and run out of town swirling feathers. Count on it. Even as this fiscal farce was playing out the real verdict was coming in: record precious metals prices and record lows in the fiat funny dollar.
I have written many, many times on the folly of the Federal Debt. I have written many, many times on how we got that way and why it matters and what the likely result will be. All to no avail as the fiscal fruitcakes in government just cruise right along. There will be no reform; there will be no alternatives to the grim consequences of generations of fiscal folly. The articles I read didn't mention the total amount, so I'm guessing our debt limit is now around $8 Trillion dollars, some 80% of our total economic output for one year. I don't even think listing the usual figures, or what I call the usual economic suspects, matters at this point in the game, the end game. The United States of America, in economic terms at least, is being judged in the currency markets and in the bond markets and on the stock markets. And the judgment is not very pleasant for the economic bums in Washington D. C.
Paul Simon, he's the Simon in Simon and Garfunkel, once wrote a song with a line, "One man's ceiling is another man's floor." A very good description of modern apartment living I might add. In economic terms I would amend that to one man's debt ceiling is another man's bottomless pit of misery. I have no idea how high is high. I have no idea how much longer this "full faith and credit of the United States" scam can continue. Any more than I have any idea how long Mr. Magoo can avoid raising interest rates like Mr. Volcker did in 1980. I have no idea how much longer this fiscal farce of endless debt, endless gimmicks and endless lies can continue. But I will tell you this dear reader, my judgment is our economic doom will come from outside our borders. I feel the economic shell game will go on until the foreigners cut us off. The day is coming when they will kick our drunken butts out of the Funny Fiat Money Saloon and throw us out into a mud puddle. The dazed American Sheeple will wonder what has happened.
The USA money should say, "I spend; therefore, I am." I hold certain economic truths to be self evident. The reason they are self evident is because history is littered with the bones of those who ignored them, mocked them or listened to experts telling them they don't matter. It is pathetic. It is disgusting and most of all, it is useless for the USA to pretend it isn't bankrupt. It is like an aristocrat pawning the family jewels to pay gambling debts. We are undone economically.
Not that you will find any open admission of this fact in the downstream press in the USA. The foreign press sees things quite clearly. They clearly understand the USA is nearing the point of being openly derided in the economic markets. I mentioned Mr. Magoo had to sell over 50 billion dollars of government debt to clear a measly 3 billion. In one of the World War Two books I read, they had a story about how Hitler, in March of 1945, heard the Rhine River had been forded by the American Army and they were pouring into Germany. He threw a temper tantrum and ordered several divisions of tank killers to fight them. Only, Adolph didn't have divisions anymore. At one time, he had sent 4,000 tanks and 10,000 tank killers into battle; now, he was reduced to four, yes four tank killers against several thousand US tanks. The USA is quickly reaching that point economically. It is written in the bond markets, the currency markets and the stock markets. We here in the USA, like Hitler, don't seem to understand the true economic situation we face.
THERE IS NO MONEY IN THE USA TODAY.
IT IS DEBT, CREDIT AND FANTASY
It is fantasy at all levels of government. It is fantasy at all levels of corporate America. It is fantasy for individuals. It is fantasy for families. Everywhere I look in the USA I see fantasy and still more fantasy. I see a government system pretending it still functions in the economic arena. They think this because the downstream press doesn't call them to accountability. The reason they do not do this is because the media is owned by the banks. The reason the money supply is increased endlessly by that economic terrorist called Mr. Magoo is because the system will collapse without it. And guess who owns the FED? The same banks that own the media, own the courts, own the politicians and own the entire country. I tell you plainly, the USA has been sold; bought and now the bill is coming due. It is only in the mental delusions of the vast majority of the United States Sheeple this economic farce can continue. The only place suitable for the United States and its fruitcake economy is the padded room at a mental hospital.
Harsh, you say? Well, read the following quotes from the article I read. The mere fact they have been made tells me they know what is going to happen to the US dollar over the next few months. I could add the fiscal year began October First, but they never get the budget done on time, so that is nothing new. It is not like it matters anyway, since Mr. Magoo just hits the print button on his computer over there in FED land. The usual Treasury Department warning it was running out of ways to keep the debt limit from being breached. The economic version of trick or treat from Mr. Magoo. Of course, they aren't going to let government bonds go into default. You, I know what that means for the status quo. And of course, they waited until after the election to raise the debt limit. And of course, there was vicious political wrangling, death defying partisanship and devious positioning for the 2006 Congressional elections. Elections with a Democratic theme of fiscal responsiility. Can somebody please get me some kind of drug that will blot out Democrats talking about fiscal responsibility and Republicans acting like Democrats in the economic sense anyway?
It is true President Bush has raised the debt ceiling three times since 2001 and ran an "official" budget deficit of $413 billion. It is my view this is a REPUBLOCRAT issue. They are all economic incompetents and frauds the whole lot of them. I do not see the issue as a political issue at all. It is an economic issue, deficits and debt, embedded in a moral issue. By that I mean endless debt and credit and the lies and fraud that support it are moral failures of the American political system. Moral failures of the leadership elite and the general populace. And it is my personal view, this full faith and credit crap, yes crap, will go down in flames when the foreigners make a moral judgment about the American economy. The point of all this debt and budget deficits is the ABILITY to repay it. Further, the moral willingness to repay it. And finally, the mental will to repay it. The core issue on the budget deficit, the economy and the Federal debt is a moral judgment on whether the United States will pay off its debts. And it is this single, ruthless, brutal statement that will take out the US government, take out the US economy and take out the United States as a superpower. This is isn't about economics in the conventional sense of the word. It is about how moral failure expresses itself in economic terms and has political and military results. I just don't think they get it. I have come to the conclusion the people, the leadership and the elite really do think they can keep this debt ceiling fantasy going on endlessly. If you ask the question at what point does the ceiling become a floor, the eyes glaze over.
The day will come when none of the mind games in the House or Senate on debt, or budget deficits or any thing related to the economy will matter any more. On that day, Argentina will look like a Sunday stroll in the park with ice cream cones. Mark my words. When the USA economy goes down, it will take the social structure down with it. What do you think all these people are going to do when the status quo implodes and the checks stop? Answer me that when you say all this economic stuff doesn't matter and I am just a negative, cynical crank. I live in a major city and I KNOW what will happen even if you do not. Perhaps, that denial, of what the economic consequences will be, is the greatest illusion in the USA today.
I have spoken.
Doug McIntosh
5 June 2005
