U.S. Budget Charade

The AmeriKan budget debate charade is completely meaningless. The debt ceiling has already been raised a hundred times in the past. The debt ceiling itself is a pathetic joke. It is a self-imposed ceiling that the imposers keep changing as needed so following this so-called debate is a waste of time.

They’re playing at brinksmanship and their grandstanding is nothing but political theatre and positioning for next year’s Presidential election. They’ll pass the budget bill at the last minute and pat themselves on the back and the lame scream media will breathe a dramatic sigh of relief. Except, that too is just propaganda because nothing has been accomplished to solve any of the fundamental and structural problems and we’ll continue hurtling toward the abyss at an accelerating rate.

The Amerikan government is doing what it does best; create an imaginary problem then pretend to solve it to make themselves look good. It’s simple distraction. They can’t solve the real problems that they created such as millions of manufacturing jobs moved offshore, depressed wages, unofficial (real) inflation, falling standard of living, trillions of dollars in toxic financial instruments (derivatives) that they allow the banksters to keep on their books at over-inflated values and the fact that Wall Street is ripping off the taxpayers to the tune of trillions of dollars a year in disguised government bailouts.

The presstitutes in the lame scream media circus are lapping it up and dishing it out to us as if it were important. It’s not. It’s just entertainment like most so-called news. There is no meaningful difference between the Republicrat and the Demopublican bills that each side makes a great show of rejecting. For all the difference, they could switch bills and the silly charade would continue.

In the first place the U.S. dollar is the world’s reserve currency. Theoretically, the U.S. could stop taxing altogether and just print money. In fact, that’s what they’re doing albeit on a limited scale. Tax revenues are down 40% and spending keeps increasing. The only reason they don’t go to 100% counterfeit money printing is CONFIDENCE. The rest of the world must maintain the charade that the U.S. dollar has value when, in fact, it has less value everyday (that ‘s called inflation).

In the second place, of the gazillions of dollars the politicians pretend to ‘save’ over the next 10 years (hello people, yes it’s over 10 years) most of it is ‘back-loaded’. In other words, most of the so-called savings take place the last couple years where it’ll be someone else’s problem to deal with. In other words, they’re just kicking the can down the road. In other words, they are way beyond the point of no-return. No matter what they do now, the debt is so huge it will ALWAYS increase regardless of spending cuts or tax increases or both.

In the third place, and this is the heart of the joke; if the deficit (annual debt) could actually be reduced then why would they need to raise the debt ceiling? In other words, it’s all bullshit.

Also, when you have an unstable currency that is rapidly losing its purchasing power and will collapse entirely in the next couple years, how can they project what the budget will be five years down the road let alone ten? In other words it’s all bullshit.

Besides, the U.S. already defaulted in 1971 when Nixon “closed the gold window” and the U.S. dollar was no longer redeemable in gold. And they’ve been defaulting every year since because they roll over their debts (while adding new ones) in a currency whose value is rapidly shrinking due to the real inflation rate which is many times higher than the bullshit official inflation rate which is calculated using fraudulent accounting gimmicks like ‘core’ inflation and ‘hedonics’ to name just two. In other words … well, you know the song by now.

Got gold? If you have wealth you want to preserve, there’s only one way to do it; buy gold and silver, either coins or bullion (avoid rare coins). You won’t make money with precious metals; you’ll preserve your purchasing power. You’ll be able to buy the same things with one ounce next year and the year after and ten years from now and 50 years from now that you could buy ten years ago and 50 years ago and a thousand years ago because gold holds its value throughout the ages. Gold and silver do not change much. The only thing that changes is paper currency keeps going down in purchasing power (inflation) so it take more and more paper currency to buy the same thing. In other words, gold & silver are NOT going up in price so much as money is going down in value (purchasing power).

It doesn’t matter that gold is over $1,600. It’s going a lot ‘higher’. In other words it’s going to take lot more worthless paper money to buy it in future. BUT, don’t buy it today. Wait until AFTER the political prostitutes raise the debt ceiling. I suspect precious metals will come down a bit before they continue their relentless climb ‘higher’.

Stay tuned. You couldn’t pay for such entertainment!

August 1, 2011

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About gerold

I have a bit of financial experience having invested in stocks in the 1960s & 70s, commodities in the 80s & commercial real estate in the 90s (I sold in 2005.) I'm back in stocks. I am appalled at our rapidly deteriorating global condition so I've written articles for family, friends & colleagues since 2007; warning them and doing my best to explain what's happening, what we can expect in the future and what you can do to prepare and mitigate the worst of the economic, social, political and nuclear fallout. As a public service in 2010 I decided to create a blog accessible to a larger number of people because I believe that knowledge not shared is wasted.
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