From Zero Hedge, here.
So, you’ve got all the time and money in the world to prep and train, right? The numbers don’t support that theory. Or is it easier for you, your family, or someone you know and care about to say, “I don’t have the money right now to get what I need. I just bought a new ______________ and the payments for that are more important.”
Or do you not mind being the ‘prey’ for people who subscribe to this world view once SHTF?
So…about that retirement account? About that ‘savings account’? Think it’s going to be there very much longer?
“US is Bankrupt: $89.5 Trillion in US Liabilities vs. $82 Trillion in Household Net Worth & The Gap is Growing. We Now Await the Nature of the Cramdown.
There are many ways to look at the United States government debt, obligations, and assets. Liabilities include Treasury debt held by the public or more broadly total Treasury debt outstanding. There’s unfunded liabilities like Medicare and Social Security. And then the assets of all the real estate, all the equities, all the bonds, all the deposits…all at today’s valuations. But let’s cut straight to the bottom line and add it all up…$89.5 trillion in liabilities and $82 trillion in assets. There. It’s not a secret anymore…and although these are all government numbers, for some strange reason the government never adds them all together or explains them…but we will.”
“These needs can be satisfied only through increased borrowing, higher taxes, reduced program spending, or some combination. But since 1969 Treasury debt has been sold with the intention of paying only the interest (but never repaying the principal) and also in ’69 LBJ instituted the “Unified Budget” putting all social spending into the general budget reaping the gains in the present year absent calculating for the future liabilities.”
“Let’s get real, austerity is not going to happen and we aren’t going to balance the budget. We’re never going to pay off our debt or even pay it down. We’re rapidly moving from 4 taxpayers for every social program recipient to 2 per recipient. And ultimately, now we aren’t even really paying the interest on the debt…the Federal Reserve is just printing money (QE1, 2, 3) to buy the bonds and push the interest payments ever lower masking the true cost of these programs. Of course, interest rates (Federal Funds Rates) have edged lower since 1980’s 20% to todays 0% to make the massive increases in debt serviceable.
Politicians and central bankers have shown they are going to print money to fulfill the obligations despite the declining purchasing power of the money. It’s not so much science as religion. A belief that infinite growth will be reality through unknown technologies, innovations, and solutions that in four decades have gone unsolved but somehow in the next decade will not only be solved but implemented. Because it is credit that is undertaken with a belief that the obligation will ultimately allow for future repayment of principal, interest, and a profit. But without the growth, the debt cannot be repaid nor liabilities honored. Without the ability to repay the principal, the debts just grow and must have ever lower rates to avoid interest Armageddon. This knowledge creates moral hazard that ever more debt will be rewarded with ever lower rates and thus ever greater system leverage. The politicians and central bankers will continue stepping in to avoid over indebted individuals, corporations, crony capitalists, cities, states, federal government from failing. It is a fait accompli that a hyper-monetization has/is/will take place…and now it is simply a matter of time until the globe either becomes saturated with dollars and/or reject the currency (so much to discuss here on likely demotion or replacement of the Petro-dollar and more…). Because the earthquake (unpayable debt and obligations) has already taken place, now we are simply waiting for the tsunami. Forget debt repayment or debt reduction…forget means testing or “bending cost curves”…we’re approaching the moment where even at historically low rates we will not be able to pay the interest and maintain government spending…without printing currency as this generation of American’s have never seen. Bad governance and bad policy coupled with disinterested citizens will demand it.”