When the financing tap is finally shut off by the bond markets, we’ll start making our first interest payments on this new debt. It will come in the form of much higher long term interest rates, a weaker U.S. dollar, an inability to import cheap Chinese goods, and declining living standards. All this will happen because the U.S. will have eaten its seed corn. Its businesses will have been shorn of their retained earnings. Consumers will have depleted the equity in their homes. The ability of the federal government to raise taxes and protect the good faith and credit of the U.S. will be shot.
The equity mining business will have done its work well, having exhausted all the financial resources it could find. The U.S. will be approaching peak oil and water shortages at the very moment it runs out of financial equity and taxing power. It will be an ugly situation, except for the equity miners. They’ll be sitting in their gated communities with the fruits of their labor of the past 25 years. More than likely, the vast American public will never understand what exactly happened.
It's overwhelming. I still don't believe it and I've been watching this for years. I still don't believe that they've stolen all this money. I don't think they'll get their way on eliminating taxes for the rich. I don't think they'll kill social security. And yet they have and they will.
I believe that we'll descend into social unrest and violence and I believe nothing will change. I know we'll all be much poorer for the rest of our lives and I know we will be out of this mess soon. I know the elite will pit us against each other until the violence gets so bad that we finally turn on them and the pretense of American superiority and specialness will be drowned in our own blood, and I am sure that nothing will change, ever.
I hate us for being superstitious and greedy and violent. And I think that if I talk long enough people will realize that if we only learned to accept ourselves and tell the truth to ourselves we could for the first time in human history learn to live in genuine peace and prosperity.
Which way will we go? The suspense is killing me.