It seems we’re finally seeing the whole damn thing start to unravel, and it won’t be pretty if the politicians act like a deer in the headlights signing budget increases while the 800lb gorilla keeps gorging itself and flinging feces at our feet.
First, the national debt has reached new heights and the world economy has been dumping dollars for euros for the past year. When China and Japan join this trend, we can expect the decline to be gradual but plainly an issue that can’t be ignored. Bet on politicians to ignore it anyways.
The current national debt is
The limit has been raised to $8,180,000,000,000.00
This is the 800lb gorilla I was talking about.
Consider this, America now blows through a trillion dollars roughly every 5 months (the national debt was $7.18 trillion May 18th of this year). Also consider the fact that to cover the interest on the old loans, we have to borrow more each time, roughly $500 billion a year and growing at a fast clip.
However, some good news may come from the Republican majority in the Senate, as they are threatening to invoke the “‘nuclear option’ of taking away Democrats’ ability to filibuster judcial nominees”. Angry Bear has some good analysis of possible actions the Democrats could take, but my favorite of the crop is complete gridlock, proposing that “Democrats could start filibustering everything else in the Senate, bringing all Senate business to a complete halt for the next two years. In some senses this seems the most feasible option, but would have to wage a careful p.r. campaign if they choose to do so.”
Indeed, it’s the most feasible and the most effective at slowing government spending and waste. I’m hoping for the best on that, but expecting a harsh reality more in line with an Argentine-style economic and government collapse, only in slow-motion and with awesome cable news slogans (“We Report. You Make a Run on the Banks.”) and graphics. Lots of fucking graphics to explain to the stupid consumers why a tank of gas costs $75.
Not to worry though, the answer has always been to simply.