Most of you already know the one imperative, but permit me to list a few factoids about our current situation to see if others can figure out what must be done first before even attempting any solutions. Without acting on this imperative, it is a virtual certainty that we will face another world war by the end of the decade.
– For over 30 years the majority of our “growth” has come through credit/debt creation – that is, pulling demand forward and betting on the come, that future demand will magically appear. The longer this Ponzi scheme is continued, the bigger the rainbow that must be pulled out of the backside of the Unicorn.
– Today, over 90% of the money created is credit handed out by banks for mortgages and other loans, increasingly for subprime car and student loans, and compounded by excessive leverage. If not for fraudulently suppressed interest rates, interest payments on the exponentially increasing debt would already be consuming the majority of the govt’s tax receipts. Of course, the govt could have eliminated the interest by actually printing money instead of creating it through debt issuance by the money center banks. Accumulated interest now represents around 70% of national debts. There’s a reason that some religions prohibit charging interest.
– Congress controls the purse strings and could have at any time brought spending in line with tax revenues. They don’t balance the budget because they wouldn’t be able to even pretend that they could fund the promises on which they depend to get elected. The incestuous relationship between Congress and Wall Street exists because Congress needs the banks to finance their promises, and the banks need Congress to maintain the debt Ponzi scheme that generates the interest (life blood) for the banks.
“We can ignore reality, but we cannot ignore the consequences of ignoring reality” -Ayn Rand
The “clean” Bill to increase the debt-limit that passed on Tuesday exemplifies the insidious nature of our political economy. Conservatives may argue that the debt would’ve increased more under Democrats. However, the inconvenient fact is the debt has increased over $1 TRILLION per year on average under Speaker Boehner’s Republican-led Congress. That’s around $9,000 per American household – and you thought you were cutting your debt. You may not experience increased interest payments, but your cost of food, gas, healthcare, education, etc. continue to rise due to money printing (debt creation) and malinvestment.
The comments about passing the Bill with no debate (to get out of DC before the snow storm) was even more telling. The two words uttered the most about the “successful” passage of this colossal embarrassment were, “certainty” and “difficulty”; as in the market likes certainty, and a quick and painless passage avoids the difficulty of having to actually address the issues that are burying us in debt. The only thing that is certain is that we will absolutely implode this once great nation through the gross irresponsibility of Congress.
The facts are the politicians and the captured media perpetuate debates and disagreements to distract the masses from the real factors. Swinging political momentum from one side to the next, while maintaining power and control for the establishment that continues to benefit from the corrupt political economy. The rapid rise in debt that started in the 80’s, and the Presidential yin and yang of Democrat and Republican Presidents has been like clockwork. Propelled by the fraud and corruption of Obamacare, Benghazi, NSA, IRS, Syria, and most of all, an anemic economy, the trend should continue with a Republican win in 2016, and nothing of substance will change.
The reality of the debt-ceiling debate is that the Chinese and other large holders of US debt, coupled with the money-center banks that create the debt, are the ones behind the curtain pulling the strings, and the gutless politicians follow their scripts. If foreigner’s don’t keep buying our debt, our Ponzi economy would implode overnight. The fact is foreign bond purchases have been declining with the Fed trying to fill the void. Why do you think Obama was pushing the MyRA program during the State of the Union? His Executive Order to create tax-free Treasury Bonds is a strategy to once again leave the American public holding the bond bag as rates rise. Like Japan, where the public holds most of the debt, Obama and the establishment believe American’s will never sell their American Savings Bonds…riding them, and any chance of retirement, all the way to the bottom. This is how your govt helps!
Is the imperative obvious yet? If not, then this insightful conversation between Martin Armstrong and Glen Downs will provide a glimpse behind the curtain.
Many great blog sites have unique insights, accurate critiques of what is wrong with our current political economy, and thoughtful solutions as well. Unfortunately, all solutions are pie in the sky without one key imperative. If citizens of the West ever want improved economic conditions and more peace on earth, then it is imperative that the establishment be replaced. Left to their own vices, politicians will always pave an Easy Street to a long and lucrative political career. For this reason, term-limits must be the first law passed after all the bums are thrown out…on their ears.
We all know the facts about how politicians bewilderingly are not required to live within the same laws they pass and expect their constituents to obey. Others may be aware of the grossly large expense accounts that are hidden from view or the details of how campaign contributions are repaid. Many books have documented the bribery and blackmail that defines our corrupt political economy. We also know that almost half of everyone in Congress is now a millionaire, largely aided by their exemption from insider trading laws. It should be obvious that the vast majority of politicians value their careers and personal wealth more than the well-being of their constituents. So, why is the prerequisite for any solution not obvious?
With the establishment profiting to such an extent, why would they ever want to change the status quo? They wouldn’t, which is why nothing is changing for the 99%, except for the worse. If the personal enrichment of self-serving politicians was the only thing we had to worry about, it might be understandable why people refuse to get off their couches to rectify the situation. However, the deteriorating economic conditions around the world, the direct result of political malfeasance, is producing the violent protest that always precedes war.
Possessing the world’s reserve currency has enabled the US to fraudulently finance a Ponzi safety net that is keeping desperation at bay for the time being. However, with holes being ripped wide open by policies that increase cost faster than incomes, we will not be able to avoid the hardships that others are already experiencing – at least with the current cast of politicians. Despite what the media says, a stunningly clear example of the coming bankruptcy of the nanny state was just provided by Germany’s highest court, that ruled kids must take care of their parents (even if the parent cuts off ties 27 years ago). Parents better start being extra nice to their kids, because whether we like it or not, a bankrupt govt’s cannot continue to finance the safety-net. The bright side is families could become closer like the olden days.
As the safety net gives way, the people will finally get angry enough to move off the couch and into the streets. If you follow the ammo purchases by non-military federal agencies (the latest being the Postal Service), whose total is up to 2 billion rounds in the last two years; and the military-style vehicles being sold to municipalities around the country; then you know that govt has been preparing for civil unrest for a while. They also have a plan should the violence get out of control.
Career politicians know that they need a distraction to deflect the anger of their constituents, and blaming some foreign boogeyman has always been a convenient scapegoat. The fact these politicians are willing to sacrifice the lives of brave men and woman to protect their careers is more than enough to at least boot them from office. As the economies and standards of living continue to spiral downward, everyone must be keenly aware of the excuses given for war and their attempts to hijack our 2nd Amendment rights.
The three biggest hotspots that could easily get out of control are in Ukraine, Syria, and the East China Sea. The fact that these conflicts pit Russia or China against the US or our allies should be of great concern and another reason why we should remove politicians that value their careers over sending this country to war when our interests are NOT at stake.
In the Ukraine, our political establishment doesn’t like not being able to control all outcomes. We are trying to sell the idea that Ukraine will be better off under the thumb of the bureaucrats in Brussels instead of letting Ukraine work out what is best for Ukrainian’s. Europeans are not even willing to get involved, which prompted our Assistant Secretary of State for Europe, Victoria Nuland, to tell the EU to F*** Off (not to their face of course). Why would Europe get involved when they know the US will impose its will on behalf of donors from the military industrial complex?
The US wants sanctions against the Ukrainian govt if they squash the protest, even though that is exactly what our govt did to the Occupy Wall Street protest. Russia is not Syria or Afghanistan, and Putin will not permit the overthrow of Ukraine by pro-EU factions, especially since the capital, Kiev, was once the capital of Russia. With the EU on the verge of economic collapse it makes no sense for Europe to take on Russia. However, with Russian energy dependence lessened by US imports, the radicals (including Nazi’s) could continue to receive support to fight their old Russian nemesis. The ultimate direction of the conflict will be determined by what is best for the consolidation of Europe (destruction of individual sovereignty).
Syria has turned into an outright humanitarian crisis, with 230 people being killed PER DAY (130,000 total), because our petrodollar bedfellow, Saudi Arabia, wants to supplant Russia’s gas interest that are supported by the Assad govt. The US and Saudi’s are the main backers of the insurgents, whose dominant faction is Al-Qaeda, and whom evidence shows were the ones responsible for the chemical attacks that killed over 1400 people. To demonstrate the propaganda, our State Dept says that we will never be able to get rid of the terrorist as long as Assad remains in power. Why don’t we just stop funding them? Our long-standing involvement in Middle East Oil, solidified by the petrodollar deal brokered by Henry Kissinger, makes the excuse for war almost as easy to sell as with Iran.
Possible the most ominous situation for the US is our outspoken support for Japan over the oil interest in the East China Sea. The animosity between China and Japan runs as deep as any in history, and PM Abe certainly didn’t help matters when he said the current Sino-Japanese tensions and relations are similar to those between Germany and Britain on the eve of World War I. Japan’s demographic and energy issues, coupled with two decades of deflation could make war the only out for Japanese politicians. Why in the world would we want to hitch ourselves to such a volatile situation, unless our politicians are preparing for a needed distraction down the road?
Economic improvement and jobs would certainly lessen the drivers of war. Unfortunately, the selfish motives of politicians seems unlikely to give way to the necessary dynamics of free (un-manipulated) markets that are necessary to resuscitate economies. If we want to improve the standard of living for the 99% and reduce the probability for war, we must first throw the bums out, then establish term-limits and democratic voting that bypasses the corrupt, bribed or blackmailed representatives.
The good thing is we have the power to make the necessary changes. Start by recognizing how the establishment promotes the left-right divide (with the willing support of the captured mainstream media), and then simply refuse to consent.