Dear readers, as any dope can see spending is increasing faster than revenues. Ergo, the U.S. will have to default on its obligations or destroy the dollar as the Germans did in the Weimar Republic. Either way it is over for America–unless they cut spending or raise taxes to the moon.
And here is the problem in a nutshell. Medicare and Medicaid spending is increasing too fast because Obamacare does not cap health costs through competition and is loading up the minimum plans with things people would not have bought otherwise to buy votes from particular constituencies. Therefore these additional items like abortions, maternity care, mental health care, psychiatric care, etc., etc. In other words, your premiums are being jacked up by having to provide every policy with these “essential” health benefits, which are only thinly disguised sweetheart deals for various segments of the health insurance and medical industrial complex. What I would call socialism dressed up in drag, yet foolin’ no one. How is this nonsense underwritten: EASY, with borrowed money that in turn transforms future generations into indentured servants of the state. The problem with Obamacare should be obvious. It will implode, because it will bankrupt the U.S. government, and the signs of that are already visible as China, Japan, Saudi Arabia, and Russia unload our treasury bonds, because they have rightly determined that the U.S. will eventually default on their obligation either through a direct default or the coward’s way of hyper-inflation. The world no longer wishes to play the U.S. fiat money game and are going to exit the system by buying precious metals that are no one else’s liability. It is over except for the fact the U.S. is a Zombie nation, dead except that it haunts the world. However, the need to invade Libya, Iraq, and Syria all involved our fiat currency or the so-called petrodollar. In the end, the worthless scrip has been propped up by our military and forcing nations to hold dollars. Our defeat in Iraq, Afghanistan, and earlier in Vietnam show clearly the U.S. to be a “paper tiger”. And with each passing defeat, the latest being in the Ukraine, our competitors are emboldened to unload the dollar. Furthermore, there simply is no global order once the dollar is Kaput. Why the dollar crisis is also a crisis for the globalists. My advice to globalists, give it a rest because the dollar is quickly becoming history like the British pound sterling. Bye-bye!
Oh yes, the Krauts thought they were going to replace the petrodollar with the euro. That also didn’t work out so well. Charts are courtesy of the Congressional Budget Office. Democracy and transparency are incompatible with globalism and their sophomoric machinations to run the world. The Brits’ BREXIT chucked globalism and the EU for precisely these non-democratic reasons. Sovereignty and self determination trumped the economics of trade.