On 9.09 I knew America had reached the point of no return for our Industrial Economy and Wall Street as we knew it.
We essentially said that running our economy as a Ponzi Scheme was systemically more important than restoring a legal/functioning Industrial economy.
Once you sustain a deficit running over $1.5 trillion dollars per year in a deficit based service Industrial Economy, it is mathematically impossible to cut the deficit back without systemically destorying the functionality of the Ponzi Economy.
Why you ask? Simple.
$1.5 Trillion of DEFICIT is the equivelent of paying 30,000,000 workers $50K per year, the average family income in America.
This is KEY: Without running the DEFICIT, those people would NEVER get paid. And as a result of that pay, the government gets huge tax receipts which allows the government to spend even more generating more income and more tax receipts down stream.
In the end, you will realize that the vast majority of our current GDP is simply a direct or indirect result of the deficit, and if we try to cut the deficit, our GDP will evaporate.
At this point, America has only two choices to defend its currency. Use FORCE to compel people to accept our dollars for trade, or collapse the economy. Quite frankly, from this perspective, its a coin toss which direction we are heading.
Expect to hear lots of sabre rattling about terrorism and fighting....and expect to hear lots of accusations of fraud surrounding Wall Street.
My guess is that we should know which way we are going within the next 3-6 months.