FISCAL CLIFF IS A JOKE!!

The FISCAL CLIFF IS A JOKE!!

The camel's back was broken 8 years ago and they've piled a mountain of straw on this dying corpse since then. In January 2013, his masters planned to pull off a bail of straw as a gesture to show they tried, but the screaming masses want this thing to stay buried so they will compromise and leave most of that bail on the camel. 

The real fiscal cliff is far gloomier than almost anyone can imagine as there has never been a time in history when so much of the world relied so heavily on a single currency and that currency could collapse under its own weight at any time via currency speculation, sending the entire world into chaos. No one can predict exactly when it will happen, but the gold chart going parabolic would be the prime indicator. 

Do your own math, and start by visiting the CBO and don't rely on the mathematically inept US president to give you economic advice. (He can be heard on Leno saying, "“The math stuff was fine up until about seventh grade,” Obama said. “Malia is now a freshman in high school. I’m pretty lost.”)

Community Talk

Re: FISCAL CLIFF IS A JOKE!!

Probably the biggest "establishment lie" that most people still believe is that bankers make their money on the "spread" between the interest they pay on deposits and the higher interest they earn on loans. In a perverse sort of way it does seem believable, but is DESIGNED to DECEIVE!

What is deceptive is the fact that bankers do NOT loan out their depositors money (a liability of the bank) as is implied in establishment and news media reports. The Bank ACT merely gives them a legalized MONOPOLY to create money out of thin air based on their RESERVES, (bank capital and deposits) at a 20 X 1 ratio. This means they collect interest (at a high rate) on 20 X the amount on which they PAY a measly 1% or less today, a far cry from what is implied by the average banker.

As Graham Towers Governor of the Bank of Canada, (The countrys Central Bank) testified in 1939 before a Parliamentary committee; "every bank loan is a NEW CREATION of momey, and when it is paid back it ceases to exist" so it necessarily follows that since only the principsl of a loan is ever created, INTEREST is only possible as long as new loans are taken out that restores the paid back principal PLUS all the accumualted interest, a recipe for PERPETUAL and growing DEBT!

As long as our politicians REFUSE to face up to the reality of a failed experiment with fiat currency since 1971 when Nixon took the U.S. off the Gold standard, and keep "kicking the can down the road" resolution will only become more difficult and disruptive. Up and down business cycles will continue as long as what is the underlying problem on a world scales is not dealt with positively.

 

 

 

thinker70

Re: FISCAL CLIFF IS A JOKE!!

Completely agree with Thinker70.  King World News also does daily interviews with many of the top thinkers in this area including Nigel Farage, Eric Sprott, Martenson, Schiff, Pento and more. It's essential listening as far as I'm concerned. 


Re: FISCAL CLIFF IS A JOKE!!

One way we can steer people in the right direction is by recommending good books that explore the subject in detail with logic, statistical facts and information that does not generaly get covered by the establishment press. I have just finished reading "CRASH COURSE" by Chris Martenson and highly recommend it, the facts he presented should be considered by every thinking person.

One simple way to keep up to date on what is happening on the economic front on a daily basis is to subscribe to KING WORLD NEWS who have daily interviews and broadcasts with some of the best minds in the business, well placed experienced people who are knowledgable and not afraid to take on establishment generated disinformation. If you simply listen to television reporters and/or read major newspapers you are not educated, you are just being systematically brainwashed.

thinker70

Re: FISCAL CLIFF IS A JOKE!!

Thinker70, I completely agree with your sentiment regarding the public education system. There is little hope of us converting the vast majority of people, but if we continue preaching, we may be able to help some people survive the real crash by pushing them to take action to protect themselves. 

Re: FISCAL CLIFF IS A JOKE!!

Great quote from Ford by Aaron, have been using it to try and educate more people for decades. The problem in doing so is that children for the most part get brainwashed into establishment thinking so early in life that unless they have intelligent parents who teach them the truth they are hooked for life.

Children are not taught in school to become independent thinkers, to reason things out, to apply facts and logic to any questions, they are judged (graded) on regurgitating the nonsense their brain-washed teachers/professers funnel into their brain to make them a captive of establishment thinking.

thinker70

Re: FISCAL CLIFF IS A JOKE!!

It was Ford who said not one in a thousand people really understand how the monetary system works and if they did there would likely be a revolution tomorrow. I hope people will become more engaged in these issues because things are going to get much worse and those who aren't prepared will be hurt because of it. It is all of our responsibility to try and get the word out in order to help others. If society was aware of the monetary and fiscal activities of our governments, then governments might actually have to act responsibly with our tax dollars and creation of money. Society's ignorance allows governments to get away with the reckless behaviour we've seen.

Re: FISCAL CLIFF IS A JOKE!!

Gentlemen,

I find it interesting that only a handful of people are ever commenting on the economic blogs here. If this is indicative of the population as a whole, then there is no hope of ever moving the masses towards intelligent conversations about the financial health of our respective countries. That being said, it is up to us to continue to state the obvious.

The 'fiscal cliff' was a SOLUTION agreed to by all parties in August of 2011when they had their last debt ceiling crisis and the (ethically questionable) debt rating agencies Moody's and Fitch refused to  change the AAA status of the U.S. and kudos to S&P for having the guts to do it. The debt ceiling has come into question more than 75 times since it was imposed in 1917 and not once has it been held. That 'solution' was the government going over the cliff. The January end to the Bush tax cuts will likely take place, but the spending cuts are another story. Few governments have the will power to make their own government smaller and Obama openly expresses a need for ever larger government. As there is no political will to fix the problem, it will continue to get worse. 



As the included debt ceiling chart shows, it appears the debt could soon be going parabolic, meaning there will be trillions more bales (spelling corrected!) piled on to the camel's corpse and one day, probably in the not too distant future, the whole charade will come to an end and we will finally be able to start over.

Kotlikoff convinced me in 2004 that my assumptions were right about the US debt load being unpayable. Any sane person, presented with the facts should have known years ago that the entire global financial system is a charade of kicking the can down the road. Mainstream media folks have been had. They sincerely believe that the 'fiscal cliff' matters and are clueless to the real predicament. 

Re: FISCAL CLIFF IS A JOKE!!

Of course I understood where you were coming from Aaron, I was just weighing in on how SERIOUS the situation really is. We can only hope that Dick Cheney will live long enough to realize at the deepest fibre of his being how utterly STUPID his remark was. As for Harry Reid, it would seem that since Obama was first elected, the word "trillions" has supplanted billions as if indeed it made no difference, but then that is at the heart of Keynesian economics.

What it emphasizes for me is that nobody should ever confuse higher education with superior intelligence!

thinker70

Re: FISCAL CLIFF IS A JOKE!!

Thinker70,


What is a joke is the fact that Washington pretends to care about the country's deficit. Let's not forget Dick Cheney's famous quote "Deficits don't matter". What is a joke is the idea that by taxing the rich (any household making more than $250K), it will somehow significantly cut into the deficit. What is also a joke is how casually Harry Reid talks about adding $2.4 trillion to the debt ceiling.

 

You are right, this is serious stuff, but the way in which it is being dealt with is a complete joke.

Bottom line is, the US is too far gone. It has to create significant inflation to get out of this mess  - while at the same time, keeping its creditors happy. This may be impossible, but time will tell. I strongly believe the politicians in Washington don't truly know how they will get out of this mess and many have likely given up. The only thing they care about is re-election at this point (excluding Obama of course) and taxing the so called rich is what the majority of Americans want.

 

Re: FISCAL CLIFF IS A JOKE!!

I disagree, the approaching fiscal cliff will not seem like a joke if it is actually allowed to happen. The reality of our "excessive debt situation" will become very clear if the powers that be simply continue to kick the can down the road by not dealing with the fundamentals! What politician will be the first to stand up and say that our current monetary system is badly flawed and simply MUST be changed before the whole world descends into chaos? The situation truly is DIRE (notice spelling) and it will not take another bale (note spelling) of straw on the camel's back before the system breaks down, it has been broken for a long time, it is just a question of when it becomes beyond repair. Bailouts can not continue to infinity without triggering hyperinflation that will finally bring home to all that you can not create wealth by simply printing numbers of pieces of worthless paper. All fiat currencies throughout history have returned to their intrinsic value of ZERO no matter what government declared them to have the backing of the full faith and credit of the government!

thinker70

Re: FISCAL CLIFF IS A JOKE!!

Sadly the fiscal cliff is a joke. We all know what is going to happen, yet somehow we are led to believe that real reform could come out of all of this. The debt ceiling drama in 2011 was absolutely pathetic. It was nothing but political drama to improve positioning; and all at the expense of the public.