So, let’s look at the reality of the situation.
From this little piece of Orwellian’ism we learn that:
“He [Obama] vowed to keep working for a “balanced approach” to deficit reduction that includes “reforming our tax code so that the wealthiest Americans and biggest corporations pay their fair share.”” and
“The measure immediately grants the Treasury $400 billion in additional borrowing authority, with more to follow.”
Am I crazy or the logic I’ve been trained to use in over 21 years of education doesn’t apply anymore? Or it doesn’t apply to these people? You balance but yet at the same time you grant someone a borrowing authority. I think the quotes around ‘balanced approach’ above are there for a reason because balance really mean something outside of the loony-land called Washington, DC.
2 a condition in which different elements are equal or in the correct proportions : overseas investments can add balance to an investment portfolio | [in sing. ] try to keep a balance between work and relaxation.
The following piece tells us however that:
“The bill would raise the debt ceiling by more than $2 trillion and cut federal spending by a similar amount over the next decade.” So, I am ready that as the debts will go up for another $2T and then will get back to current level of roughly $14.3T ? I wonder what about those conservative estimates of about $77T of unfunded liabilities? How they will be paid off? Just think of it: $77 million millions!
And this very last one is saying that all is fine again:
“…[bill] will enable the Treasury to borrow as needed to pay the government’s bills and fund programs that Congress already agreed to.” Wait, what about scary D-word?
1 failure to fulfill an obligation, esp. to repay a loan or appear in a court of law : it will have to restructure its debts to avoid default.
There’s no default of course. What US government was facing is a debt restructuring much like Greece and other PIGS are facing. However, such restructuring are a suicide for politicians. They will do everything they can to postpone the realization until after the next election is over and they aren’t in charge anymore. That’s why this country his been scared out of their wits by the propaganda machine hammering us on the head how bad it’s gonna be if this bill won’t pass. Just think about it: if $14.3T couldn’t be paid how $16T and change will be? Who are those nice and perhaps crazy savers who’ll come to by US Treasure debts in the amount of $400B by end of this year and more thereafter? Buying debts with a negative real return rate, mind you?
So, here’s the answer, ladies and gentlemen:
inflation |inˈflā sh ən|
2 Economics a general increase in prices and fall in the purchasing value of money : policies aimed at controlling inflation | [as adj. ] high inflation rates.
The phenomena above has a pure monetary causation: more fiat current is being printed, less its value. Ergo, higher the prices of everything.
Let’s take a look at some of the prices today (at the time of the writing):
- Gold +2.51%
- Silver +3.87%
- Oil -1.74%
- Gas -0.86%
- S&P -2.56%
While real money are getting more expensive (first two positions) in terms of fiat currencies all around the world, energy commodities slid lower on pretty negative expectations about economy as more cheap money are coming into circulation thus prolonging and worsening the stagflation we are pretty much in already.
What does it tell us? Simply this: dollar value will go down and down it goes until all US govt debts could be paid with one single mighty fat check, which will buy nothing. Something along the lines of
In the course of actions a lot of poor schmucks will be screwed all over exactly as it had happened in post Soviet Russia where people were rejecting to use shit like this
or in Yugoslavia where they had Duke Dracula on their banknotes:
Oh, and one more thing: tax reform means nothing else but stealing last pair of pants from the “fat” cats making more than $250K a year per family. To give you a scale of the things here: a couple of mid-senior software engineers in Silicon Valley will work their asses off and make that much in most cases. Then they would be robbed under gun-point (a.k.a. as voluntary IRS tax collection) because these reach software engineer bastards have to pay their “fair share” and poor people who don’t want to go of the government dole and do something productive will get their food stamps, housing subsidies, and unemployment benefits.
Good luck working hard and building your future in the land of the free!