RE: US Debt Undermines Dollar Confidence (whether people realize it yet or not)
Hey, @davemccoy.
So, we more or less run a deficit every year, since we HAVE to spend more than we take in (I'm pretty sure it's an amendment to the Constitution), which runs up our debt. And then we have about six to seven times that amount of debt in unfunded liabilities. That's where the true terror lies. (Not that this big red under cliff graph isn't horrific enough).
The only reason we've been allowed to come this far is because we've been the reserve currency. But as that continues to erode, there will be no bailing us out. There will be no one who isn't affected. There will be chaos, there will be suffering, there will be deaths, and there will be destruction.
The best scenario I see is we manage to take over China and other foreign countries so our debt is completely erased. Which means America becomes the invader.
In saying that's best case, I'm saying that's about the only way we come out of this relatively unscathed, and I don't see even that happening without major bloodshed. I don't think it's the right thing to do. I don't think it's going to happen, but somehow getting our debt to foreign countries forgiven is the only way we walk away from this.
Have a nice weekend! :)
We are pretty damn close to perfectly synced on this one too Glen. I hope we don't have the bloodshed you described, but its been pretty much the playbook for centuries throughout time. It also serves as a nice distraction for people when they lose the things they can't have anymore. Plus it is the perfect way to shift blame for all ills to the "big bad enemy".
I know you were kidding about the debt was added as an amendment to the Constitution, but sadly I bet you half the congressmen don't know that :P ... And yes the unfunded liabilities are terrible, but my guess is they will never be funded because those promises will not be able to be met. I can't even imagine how bad it will be if they hit us with the truth one day and say "sorry, we've spent it all already". And who knows, maybe I won't have to... Maybe they can distract people even longer with some more "Dancing with the Stars" type shows ;)
re: amendment
Well, yeah, I was kidding, but in thinking about it afterwards, the 16th amendment (income tax) and the founding of the Fed pretty much set us on this current path.
We've got only ourselves to blame about the Congressmen. If we keep voting them back in because they bring nice things back to us using federal tax dollars, then we're part of the problem. If we want them to intercede on our behalf beyond their constitutional mandates, then we are part of the problem.
re: promises
I doubt we'll hear that everything is gone. Checks will stop going out in the mail, medical services will be denied, and the media will either be mum if it's Democrats in control and/or blaming Republicans, even though all parties will be complicit, just to carry on the charade a little longer.
I'm hoping that this will all happen 50 years from now, too, but I don't see it taking that long. Things are accelerating too quickly and there's not enough monopoly money to keep it afloat.
We sure do Not have 50 years! Less than 10 is more likely. You are right,things initially will just begin to stop working.
Healthcare will go first, because they have the most control of that field.The government checks will be last, because when those stop, riots begin. But they will cut SS first, and welfare last.
>:(Ten, eh? Well, I was going to be slightly more optimistic and maybe split the difference at 25, but I agree, it's going to come sooner than later. Germany gets fed up propping up the European Union, especially with the southern countries, and things unravel rapidly.
There are so many different possible trigger points that if we truly knew them all, we'd probably start the spiral then, just from being overwhelmed by it all. Ignorance they say, is bliss.
I was basing that on 6 more years of Trump, with the associated gains in strength of this host; followed by 4 years of another liberal parasite who would not want to face re-election.
All he need do is assist in the dollar crash, and declare marshal law....>:(Sorry for the late reply, but I agree wholeheartedly with both of your points. I don't think it will take 50 years either, but they've shocked me with how long they've been able to keep it up so far. I gotta admit, with computers they can now do things much better than they used to be able to, that specifically includes manipulating people into doing what they want and when.
No worries on the late reply. I see you been kicking up some dust elsewhere. :)
It's got to happen. There just isn't any other way around it. Someone will decide to stop playing the game. Us, them, someone, and then the whole system will just disintegrate. I wouldn't mind it if it were 35 or so years down the road, but I think even that's a little too optimistic.
But as you say, they've been able to drag it out longer. And maybe they're big play is to basically take over the cryptospace, or come up with their own crypto. They need to find some other way to create value out of thin air.