Is War The Option?
November 14, 2009
– Comments (11)
Absent Defense.....pretty much every sector in America's economy is contracting rapidly.
Tax receipts were DOWN 18% despite governments' running a $2 Trillion dollar deficit.
It is clear that the bankers are cutting off credit to the private sector causing massive failures, loan defaults and slowing private sector revenues. The public sector is only functioning on life support by printing.
The business shut downs, job losses, and wage cuts have really accellerated in the past few months.
Very few companies are hiring as more and more stay unemployed for longer and longer periods of time.
If this trend continues much longer, our revenue base will simply be too low to sustain our massive infastructure.
We are already seeing office buildings shut down and remain totally vacant, shopping centers are becoming ghost malls, banks are closing branches across the nation, cites, counties, and states have just started implementing massive cut backs, and now the Federal Government is starting the bang the drums.
Unless we restructure debt, there is no doubt that most of America as we know it will shut down simply because declining revenues will not be able to service debt and cover expenses simultaneously. $10,000 per year health insurance bills was fine when money was flowing......but it is fast becoming most of the income of millions of families across the nation....and with more and more going uninsured, health care as we know it is shutting down due to declining revenues.
None of this is hard to see........it is what mathematically happens to an overleveraged domestic consumer economy that is dependent on credit to function. If you cut off credit, the accumulated outstanding debt suffocates cash flow and shuts down the economy. If you simply bailout the banks and permit them to foreclose on a debt burden that is mathematically impossible to payback without massive credit being simultaneously injected into the economy.
If you wanted to solve the problem, simply relieve the debt burden on the population as we did with the banks. But if you only bail out the banks and not the private sector, the private sector dies and the banks survive.
It is clear that this is the policy of government to shut down the economy now....often this happens in preparation for war. In order to get people ready for war, there's a need to be in the appropriate mental state and a willingness to sacrifice everything to survive.
Do you think Donner, or Deej, or FloridaBuilder would be willing to give up everything if they we sitting fat and happy around the pool with a happy outlook toward the future....nor would any other sane human being. During periods of history where massive economic/social change was ready to take place, war has always been the most efficient way to effect the change.
It is clear that government is setting the stage for the change.....it is why Buffett went all in with the railroad, it is why politicians are allowing their nation to suffer while the bankers get fat(normally the bankers suffer along side their customers). Your people must suffer to segway into the next phase.
This is not about cycle, but change.....a change you can believe in.
The funny part is many of the low level hedgie type finance guys are thinking this is simply a wealth transfer.....this is the furtherest thing from reality. It is a paradigm shift, and many of them will eventually be shifted out of the pardigm as well while the chosen ones remain silent.
The stage is being set as we hear about more terrorist medical doctor desk jockey types shooting up dozens of military personal with a .357 and an automatic 9 mm in a manner that would make James Bond and Clint Eastwood look incompetent.....wtf, who is this terrorist assassin treating our soldiers and were those military people who were trained to take fire just sitting there as he put one gun down to reload the other???? It takes a few seconds to reload, but just one to take a man down.
You know the drum beat is getting louder as our economy is getting softer. This pattern of behavior is well documented in history for those who take the time to learn. Obama is making the rounds. Based on the rapid deterioration in the economy and rise of anger amongst our domestic population, it is likely the beginning is sooner than many think as you are told the recession is over.
When it's over, my guess is the future will be brighter for all........at this point, I have yet the fully grasp the nature and extent of the conflict....the only thing that seems more and more likely is that it will be very disruptive to our current economic/social structure and it is seemingly getting closer and closer.
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