If easy money has stopped working, then what’s left? Massive deficits, of course. Pressure is building on governments around the world to increase spending and pay for it with borrowed funds. Sound familiar? It should, since it’s what they’ve been doing on and off for decades. But this time, “fiscal stimulus” will, like QE and NIRP, turn out to be too much of a good thing, with dire consequences for just about everyone.
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11 thoughts on "Podcast: Huge Government Deficits Coming"
John:
I like the new podcast. It would be nice to see more posts like that.
Yep, I agree, it’s time to buy more…physical gold/silver. Paper holders will end up being “Corzined”. Now it’s the end, perish the world…the fraudster world that is.
The fact that the “free market” doesn’t want to invest in whatever the government has in mind (e.g., infrastructure, etc.) is actually a signal that such projects/investments are not economic, even at very low borrowing costs. Therefore, the government is literally forcing the issue by investing in them anyway (for “the greater good”) but that does not make them any less un-economic. It simply spreads the cost of failure over the entire population instead of just the investors as would be the case with free market, private investment.
Look at differently, since the banks are unable to find “enough” willing or credit-worthy borrowers to go out and spend and/or invest, the government is going to force all of us (the US citizenry) to borrow anyway and invest in things that it may not even want, all for our on good but also at our expense.
Bruce, good thoughts all. One more possibly minor footnote. The US
along with many nations is in debt up to it’s ears. We borrow massive
amounts and waste a good share of it on military “needs” and
international geopolitical manipulations. Japan has taken their
borrowed, debt-generating money and built up a remarkable
infrastructure. Excellent high speed rail, airport and ocean port
capabilities, hospitals, etc. When this global house of cards does finally
come crashing down at least Japan will have something positive to leave
to the future. What are our kids going to do with F-35s, nuclear attack subs and military airfields in Iraq?
Exactly!
The Fraud 35 Super Fleecer can put a bomb through a school window from 50,000 feet. Currently an economic threat to your great grand children.
What a mess!
Not saying it is right by any means … but I’ve come to the realization that the only real “edge” the US has anymore is its military “might,” albeit with absolutely no moral compass or anchor to its roots as so sensationally memorialized in its founding documents (Constitution / Declaration). …
The elite’s mistaken notion is that might is right. It is not … and we, as a nation, will rue the day! Gonna get ugly folks!
The war was fought with so-called private/efficient/economic means and it cost us $3 trillion and counting as it is the first contractor war in our history. The government has always used private contractors throughout our history but some of you wouldn’t know that because you’ve been living under rocks for a long time. The billionaire class who are subsidizing this libertarian crap got rich off of government contracts and are just to greedy to let someone else in on their pillage. When government gets ready to big things it contracts out to the private sector it just doesn’t work the opposite way when fixing the infrastructure or it would never get done. .
That’s not what I mean. The fact that the government pays private contractors to do something vs doing it internally is not what matters. What matters is that the government wouldn’t be funding anything if it was actually a “good idea”, a sound investment, what the citizenry wants, etc. One reason people are so pissed off at Washington is it does things most people don’t want from funding bailouts, funding entitlement programs, starting wars, nationalizing healthcare, subsidizing “green” technologies and businesses, climate change regulations, infrastructure spending (like “bridges to nowhere”), etc.
What matters is that we get people in government that look out for the public’s interest not the donor class interests. Isn’t that what government suppose to do in a 21st century world? Funny, corporations are people now but somehow government isn’t. Corporations look out for their interests only and government is us, we elect them. And by the way Obamacare isn’t nationalizing healthcare it’s another give away to the private sector that is monopolized by the actors in it. Somewhere along the line you have to come to the conclusion that without government there is no representation just an oligarchy. This is the Kochs and company selling us their version of the world which only works for them and the rest of us can just fend for ourselves.