Assuming the debt ceiling is eventually raised, the move will make the coming debt reckoning that much bigger. Officially, the national debt now comes in at $18.1 trillion – about equal to the nation’s total economic output for a year. Adding in all projected unfunded liabilities brings the total to about $210 trillion, as calculated by economist Lawrence Kotlikoff.
It occurs to us that we are all in the midst of the New World Order going about business as usual, creating Problems, and the bigger the better, then watching reactions of the masses, even governments. The worse possible the problems, the more horrifying the Reactions the better. For waiting in the wings is their planned Solution, all leading toward global takeover under a one world rule, like the UN.
For centuries, people living in Western Civilization have been accumulating capital. They have not simply subsisted, and left the world the same as when they entered it. They have been creating more than they consume, passing on new wealth to their children. The Fed’s falling interest rate has slammed this process into reverse. It has put the entire economy into liquidation mode. It has forced people to consume their capital.
The inflation camp shares the conviction with deflationists that there is too much debt in the system. But they differ on the outcome. Harry Dent and those in his deflation camp figure that central banks and governments will ultimately be powerless to stop default. They think the purchasing power of the dollar will rise against everything else, including gold. We expect default to occur primarily through inflation, with debts stealthily repudiated through repayment in less valuable dollars.
Ron Paul says people seeking to advance peace can learn much from looking to Switzerland. Paul states in an interview that he likes Switzerland’s “very successful national defense,” and adds “there is no reason that we can’t use that as a starting point.”
This village was a long, long way away and this story happened before the world developed High Frequency Trading, Derivatives, Quantitative Easing, PhD economists, central banking, paper money, and career politicians to manage the affairs of our nation, so this story may not be relevant to our modern and sophisticated world.
By Shadow of Truth from The Daily Coin: There is a trend, we can see a clear opposition is growing, we have more people moving toward our point of view than the Statists’ views. At the end of the day, how much worse does it need to become until the people finally realize that they are completely enslaved.
The status quo is heavily slanted in favor of fiat currencies, against gold, and maintaining their power and wealth. The anti-gold sentiment is quite strong. It reminds me of two thoughts. If everyone is thinking the same thing, no one is thinking. If everyone is leaning over the same side of the boat, watch out.
If you let the Harlan K Ullmans of the world dominate your life, or go through life in an unexamined manner, the elite’s unfolding game of Jenga, unseen but visible to the curious eye seeking to be informed, will destroy you. None of those in control want you to own gold or silver. It is an act of individualism, a non-state action, but if you do not have or own either gold/silver, you are playing totally into the hands of those state-actors bent on making you subject to their whims.
A few words come to mind: anger, anguish, bankruptcy, betrayal, depression, recession, repression, riots, stagflation, and trauma. In a saner world, we will depend far less on fiat currencies that are devalued easily and inevitably. Instead we will trust gold and silver more and paper much less. My advice: Create your own financial sanity!
The Incrementum Advisory Board gathers once per quarter to discuss the economic and financial outlook. Respected people like Jim Rickards and Heinz Blasnik are part of the panel. We encourage serious market students to thoroughly read the document as it contains wealth of insights. We picked out 25 insights related to the state of the monetary system, economy and markets.
Depending on the magnitude of additional “money printing” that the world’s central banks will unleash upon the global financial community, we could see hyperinflation in several countries within a few years. Why? Central banks will try everything to avoid or reverse a deflationary collapse in paper asset markets because a deflationary collapse is “game over” for their credibility, governments, and politicians. They will print and print more and continue to fuel the inflationary boom, and … the bigger the boom, the larger the distortions, and the deeper the collapse.