Luke Gromen On The No-Win Situation We're Trapped In
Via Wealthion.com,
In the US, the monetary & fiscal stimulus spigots are turning off as the Fed threatens to start tapering in November and Congress devolves into gridlock over both the next stimulus package as well as the debt ceiling.
The US currently spends 111% of its tax receipts on the true cost of servicing its debt & thThis is a no-win situation.
Outside the US, longstanding stable political regimes like Angela Merkel’s party in Germany are voted out of control. And Asia, particularly China, is experiencing a pronounced economic slowdown, exacerbated by failures like the Evergrande crisis.
Add to that rising energy costs, natural gas & petrol shortages, and electrical power rationing across the globe, and the road ahead looks downright scary.
How will this turbulence resolve? And how are markets likely to react?
To shoulder the challenge of making sense of this all, I’m thrilled to welcome Luke Gromen back onto the program.
Part 1:The Fed is now chained to printing up the difference.
No wonder George Soros is bailing. I am listening now to the first of the two episodes. Actually, Hyperinflation is one way of defaulting. The Weimar Republic tried that in 1923. You might ask a German how well that worked.
When he says that the cost of the deficit is 111% of US Treasury tax receipts, he is counting interest on the debt AND off budget payments.
My comment on the title of this video "Death By Inflation Or Debt Defaults?" is that hyperinflation is a default. The Weimar Republic tried using hyperinflation to cancel debts in 1923. You can ask any German how well that worked for them.
America discharged debt in bankruptcy courts and in foreclosures. The US M2 money supply fell from $65 billion in 1929 to $45 billion in 1933. That decline in money supply caused a 25% unemployment rate for heads of household.In 1933 unemployed married women were not counted as unemployed. In the 1930s 3 million Americans starved to death. The demographer Borisov gave us a range of 3 to 7 million Americans dying by starvation in the 1930s as American statistical record keeping was poor. There were only 123 million Americans n 1929.
He does mention one solution is that everyone over 65 dies so their children inherit everything. That could be accomplished by the release of a weaponized MERS virus.
