Monday, July 11, 2011
Economic D-Day: US Heading for the Wall ?
I was always told to never spend more money than I had.
" If it's not in the piggy-bank, don't spend it" Simple, timeless advice from parents that came through the "dirty thirties" --when unemployment was standard, men and their families were put out on the street and desperately migrated any place they could go to find work and food. A time when the very will to survive, for many, determined whether they survived or not.
The question is now not whether individuals will survive, but whole nations --Ireland, Greece, Spain --all in financial trouble, playing with "bailouts" --and now the USA.
Big trouble is afoot-- and in July, --yes, THIS July, --in the next few weeks it will be pretty much determined if the US hits the wall or not--with 15 Trillion dollars in debt, give or take a few billion, a "few" very pricey wars on the hotplate and a struggling political battle in Congress doing it's best to kill off any progress--what will occur? Will the US default on it's loans, or will it just print trillions of paper dollars and inflate the debt away--destroying the economy with hyperinflation? Will the 'debt ceiling' just be arbitrarily raised to "extend" the deadline and "put off" the big collapse?
It seems to me economics in North America is going to have to be re-invented. It is not working, let's face it. Big corporations and CEO's collect tax breaks and multi-million dollar bonuses while shareholders collect little or nothing for their investments; taxpayers foot the bill for bailouts, and end up in worse shape than the trillion-dollar banks that continually siphon the cream off of every sector of the economy--and all the while creating yet more financial disaster so the taxpayer can foot the bill to fix it. The banks OWN North America. The banks OWN your government and tell it what to do. The US federal reserve is NOT run by your government.
Change is due, and soon. Real soon. IN the old West, they would "hang'em high" and leave the vultures to clean up the mess. In today's economic world, we have it backwards; the financial vultures are happily creating the mess.
August 4th is D-Day.
Standard& Poors notes that the US default on on it's payment for August 4th.....the US will drop rating from " AAA" to a dismal "D" ranking.
The global economy is at stake and world markets will react "badly". A real barn-burner. The Grapes of Wrath are ripening.
It's going to be a tough one. Hang onto your hats.
that's my story and I'm sticking to it.