Submitted by Bill H.
The time has finally arrived that your parents probably warned you of. “We can’t go on spending more than we produce forever”…forever has arrived. Believe me, if there was another way out, sequester wouldn’t even be a word. It would even be banned from dictionaries but back in 2011 Congress needed to “buy some time”. They in fact did. That time however has run out. Don’t get me wrong, I’m sure that some sort of sleight of hand “deal” will be reached in an effort to buy even more time but one must wonder whether “this time” is THE time. THE time being when credibility, ALL credibility is lost.
Russia and China are only holding us up (carrying us a few extra rounds) to see how much more metal (money) they can bleed. People ask me all the time “when do you think the roof will come down?”. This is very very easy to answer…as soon as Gold or Silver don’t get delivered in return for Dollars.
Time is running out before the budget “sequester” kicks in. Even our president spoke about it today and warned of the “dire consequences” that would accompany it. All sorts of programs and “benefits” will be cut and …”will be bad for the economy”. Basically “life as we KNEW it” will change…and it won’t be for the better, or will it?
First off, we have not even had a budget for the last 4 years. This of course is illegal but who cares? A budget? We don’t need no stinkin’ budget! Over these last 4 years we have not had a deficit of less than $1 trillion and run up over $5 trillion on the company credit card but who cares? Deficits don’t matter…haven’t you heard? Well, they don’t…until they DO! So why a sequester? Congress wrote it up in the first place so why don’t they say “we were just kidding”? Why not “damn the torpedoes, full speed ahead”?
Simple and in one word, CREDIBILITY! We have pushed our “credibility” past the limit, WAY past. We lived and basked in the glow of WWII for 60 years. We “had” credibility. We “had” a reputation for fair markets, the rule of law, civil rights and just good ole’ basic fairness. It was the U.S. that lead in everything and the world looked up to us…until the “glow” began to dim and our “credibilty” faded. Put simply, we got lazy and cut corners. We lived off of the past, the past savings, the past plant and equipment, the past reputation and credibility. We ate the fat then the muscle then the bone and marrow yet people “wonder” how it all happened.
The time has finally arrived that your parents probably warned you of. “We can’t go on spending more than we produce forever”…forever has arrived. Believe me, if there was another way out, sequester wouldn’t even be a word. It would even be banned from dictionaries but back in 2011 Congress needed to “buy some time”. They in fact did. That time however has run out. Don’t get me wrong, I’m sure that some sort of sleight of hand “deal” will be reached in an effort to buy even more time but one must wonder whether “this time” is THE time. THE time being when credibility, ALL credibility is lost.
I have written many times that running an 8% deficit to GDP means that a balanced budget would produce an immediate 8% contraction in the economy. Some may think “only 8%? No big deal!”. Well it really is a big deal. You must remember that in today’s world everything is priced and business models assumed “on the margin”. Meaning that “leverage”, lots and lots of it is used to create profit and ANY pull back in growth is magnified to bottom lines many times over.
I could go into the various programs which will be cut, the jobs eliminated and the checks that won’t arrive, it is pointless. It is pointless because the entire system is a bunch of wobbly dominoes that our “rulers” believe may become grounded again if “only we had a little more time”. It’s like a circle, we need to buy some time to fix things while the “fixes” make things worse which requires more time and so on.
After a little bit of thought, the “credibility” has already left the building, Russia and China are only holding us up (carrying us a few extra rounds) to see how much more metal (money) they can bleed. People ask me all the time “when do you think the roof will come down?”. This is very very easy to answer…as soon as Gold or Silver don’t get delivered in return for Dollars. This by the way would not be the case if there was any of that “credibility stuff” left…but there isn’t.
-Bill H.
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Makes more sense than anything I have read lately. Seems obvious once pointed out.
What happens the first time you put food out for the stray cat? A. You never get rid of it after that. We haven’t had a budget in 4 years and we will probably never see one again. It is unreasonable to expect the branches of our government to balance their budgets with dollars allocated to them dollars that are in a state of constant depreciation due to QE. I’m not a proponent of this practice. It’s just my observation. Congress and the FED are siamese twins whether we like it or not. Outside the realm of financial activism buying precious metals and stacking other important commodities I don’t see other effective means or strategies to implement for now on an individual basis during this worldwide economic downturn. It’s stacking time again.
How can they balance the budget when they have grown in numbers of hires every year? Instead of trimming the fat most government offices have added new employees. We need a massive flush of the toilet in DC to get rid of the crap that refuses to go down the drain.
I’m really enjoying these articles by Bill H makes it easy to read and understand. Great Job. Keep stacking if it’s within your Budget. Me, I Don’t Have One. Lol
Me either, Charlie. I have a pretty simple life-style and spend just enough to be comfortable. That’s really all I need to do. Don’t need to drive a German luxury car, vacation in Europe, eat Truffles, wear shiny rocks, hob nob with the rich and infamous, or send the kids to boarding school. Just give me the basics of comfort and I am all good. Of course, I DO consider gold and silver among the basics.
The Sequester will fester for another semester
The budget, they’ll fudge it, won’t even begrude it
Makes one think that once the dollar is scorned and most of the gold and silver are gone east, the US Feds will be in a very vulnerable position. The way I see it couldn’t happen to a more deserving bunch of traitors.
They say that, “If you think that education is expensive, try ignorance”. Well, we have been doing that via the public school system that has been dumbing our kids down for 30 or so years now. Children who are educated in the basics of the founding of this nation would not vote for the scum that is currently in office and doing all they can to ruin this country. They are teaching us a lesson and it is a painful one. But we will come through it, sadder but wiser. Perhaps we will be wise enough not to let down our guard next time such cretins dare to raise their pointy little heads out of the muck in which they spawn. One can only hope.