Maybe you think everything is just fine, and all we need is some more diversity training poetry workshops to make our very own modern utopia. But what happens when the money, and the credit, runs out? Reflect on this:
You can read it all, at ZeroHedge.
LSP
9 comments:
The Federal Reserve prints money with no backing but a wink and a promise and then loans it out. That's what the American economy is based on and the world has to swallow it because if they don't and we default, they fall too.
The perfect hustle.
For sure. But at some point the trust evaporates... surely?
They're going to push it as far as they can. And let me ask you a question. In Orwell's 1984, did the characters question the currency?
I remember that the currency in Orwell's book was dollars...
But for what it's worth, I'd imagine they'll keep on keeping on until we hit a reset wall.
The US has hegemony and uses it like a club to value its currency with respect to other currencies. All the while we cluck our tongues at others who don't have enough reserves to support their shekels, yen or RMB.
Within the country, there is peace and prosperity and the man on the street has no clue, accepting payment in "Federal Reserve Notes" and using those worthless slips of paper to trade for Jaguars, and Jamison's.
This little trick is one of the oldest in the potentate's play book: nowadays, it's called monetizing debt.
LL's right (as usual), we lead the leagues in the monetizing of our debt, and because the world's economy is essentially pegged to ours, nobody can do a darn thing about it.
I predict it will end in tears -- a bit like Detroit.
Not so fast, there, Reverend, don't start shoveling dirt over our economy just yet: Detroit ain't dead yet, not really. It's like a zombie city: it's dead, but death doesn't stop it from fielding a couple of professional sports franchises.
Yes, it's 'bankrupt,' but that doesn't mean much just yet. The pensioners in Detroit, all of them Democrat UAW or Teamsters or SIEU members, are still getting checks in the mail every month.
I don't exactly know how this works, but it ain't over until these union retirees, who all retired at age 51 or so, stop seeing the checks show up. Then we'll see how things shake out. Pitch forks, torches, somebody's gotta pay them, or they'll burn the place down.
And those checks are still clearing these union thug retiree bank accounts.
So, it's a little early to be declaring Detroit a casualty. Like all zombies, it can do a lot of damage before it's laid to rest.
Detroit, what a zombie.
i used to work in Troy, just me and my wooden horse.
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