The Opportunity we have all been given

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Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2387
The Opportunity we have all been given

As an inveterate forager in the alt. economics blogosphere, I can tell you that there are some very smart folks, including the likes of Karl Denninger and Kyle Bass, who see the mathematical unstainability of our fiat currency, debt-based paradigm, and predict an approaching singularity... or as Kyle Bass calls it, "The end of a 70 year debt supercycle".  What I ask you to note is that they each make this case without ever invoking the issue of resource depletion.  Here's what Karl said earlier today on his blog;

  http://market-ticker.org/akcs-www?post=219086

The monetary and fiscal authorities are trying to restart what they did from the 1980s through 2007 but it is not working.  It is not working because it cannot work; the consumer is debt-saturated and either unwilling or unable to lever up while making the payments, even temporarily, and every time this is attempted the economy responds by contracting......

and later in the same piece;

In the case of the United States we still have a monstrous amount of debt that must be removed from the system.  We cannot "earn out way out of the hole" because the economy is not capable of generating sufficient organic growth to do so; it has all been debt-financed!

If we do not stop expanding the size of the Federal Government we will wind up in exactly the same place that Greece and Cyprus are, except that there is no "sugar daddy" in the form of the ECB and Germany to "dictate terms."  Only disorderly collapse awaits us if we do not cut this crap out, and do it now.  We cannot slow the rate of expansion we must stop it -- here, now and today.

I bring this to the reader's attention because you may not realize what a gift you are being given by the teachings contained in Chris' work.  That gift is certainty.  Certainty that the hoped for "growth" that is on the tip of every leader's tongue, from Obama on down, is never going to happen.. and if it does it will be the nominal, inflationary kind, and not the organic, real kind.  Certainty that your investments into personal resilience today are the best ones you could possibly make.  Certainty that the mathematical unsustainability folks like Denninger and Bass see is absolute, driven home by the reality of resource depletion, and that Cyprus is a look ahead for what all Western-style economies have in store for their futures.  

Somebody tried to pound the Gold price down on the Sunday night open.  There are only 5.3 Billion troy ounces of above ground Gold for the 7 Billion people on earth.  It is utterly amazing to me that one can still log on to an online coin shop, go to a LCS, or a coin show, plunk down $1700 or so, and buy an ounce of Gold.  There will come a day when you can no longer exchange your fiat money for Gold, because none will be for sale.  You have been given the gift of certainty, and that is priceless.     

 

 

dshields's picture
dshields
Status: Platinum Member (Offline)
Joined: Oct 24 2009
Posts: 599
Oh yea - Truth

Truth is good and your post has it. What amazes me is that fact that the media does not distribute this information. If the people are not made aware of the facts then how can we expect them to make the right decisions ?

This is a very dangerous situation. When I was a young man, journalism was considered a profession - like a lawyer or an engineer. You had to go to college and there were strong professional ethics involved. The stories you published had to be true and objective to the best of your ability. That is all gone now. The stuff I see in the media is astounding. Lies and half truths are common. But the really amazing part is the stuff that is not reported at all. Sins of omission. The majority have no idea what is going on and if you try to tell them they think you are crazy. I believe this is a very dangerous situation. When the majority are confronted with the reality of the situation they will find themselves in, there will be great unhappiness and civil unrest. No wonder the Fed Gov is arming itself to the teeth. If I was in the government I would be doing the same thing.

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2240
Testify, Brother Jim!!!

Did you ever consider becoming a preacher-man?  I for one could see you sermonizing at the First Church of Financial Rectitude!

"And now, brothers and sisters, we will hear from the choir, who will regale us with 'Nevermore Debt for Me'!..."

Sing on!

Viva -- Sager

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