The next few years are going to be traumatic. No conservative is going to be happy. Borrow and spend will be the call. State governments will be in line for bailouts. For that matter, everyone and their brother will be in line. Any way you cut it, finding new entities to tax will will become unavoidable from this point on.
Anyways, expect a debt moratorium of some kind, raising "
sin taxes" and more kickbacks to taxpayers to save the Washington elite's asses.
Either way avoiding the pain is impossible. They can only make the
situation worse by temporarily staving off the collapse by re inflating
big time.
A deflationary collapse after boom and bust policies go awry is no fun. Expect radical changes in our military usage world wide as the Empire retrenches and continues moving to China. Only they have the consumer base to create and sustain a new inflationary bubble that the system needs to support capitalism's underlying constituencies. (every one wants something for nothing, hand it over.)
It must be understood that the West has temporarily exhausted itself. That's why China will have it's day in the sun. We may expect the Moslems to take over most of Europe and convert these economies to permanent depressed areas like the Middle East without oil.
As far as the Middle East is concerned oil begins to disappear from the scene as a viable economic engine for progress in all these countries under a Democrat regime.
Think renewable. This guarantees conservative religion in power becoming the norm.
Expect turmoil to become endemic as the wealth dries up and
fundamentalism takes over . Unfortunately,In order for Israel to survive the nuke may come in to play.
Talk radio gets it in the chin with the "
fairness doctrine". Wall street will get cleaned out of people who formally supported the Republicans. Government takes over most of the the banking system and gives out large handouts to the Dems constituencies. The ''rich" are already lining up with Obie staying under the class warfare radar (The rich always buys a seat at the table).Historically banks are in bed with the Dems and Wall Street owns the Repubs.
Let's not forget though, that the
Boomers are still in full power and can change most of this by saving and investing for the future if we stay employed. I've argued for years that free trade, i.e giving our economic base away to foreign entities therefore destroying the working class is nuts. We, the working class (blue collar) who fought all the wars, paid all the taxes and made the world safe for democracy, have been sold down the river by con artists, quick buck guys and Ivy league grads without a lick of sense or shame. We are broke.
As far as the current election cycle is , you would think Republicans have learned by now that it takes more than opposition to abortion to keep us at the polls. Time will tell if they have learned not to lie about their agenda. Small government is not wishful thinking but a winning time tested winner. However, since when is bailing out their buddies on Wall Street, politically the kiss of death, part of controlling spending.
Hello!
Our way of life is disappearing before our eyes and we ain't happy. The next couple of election cycles will prove it. The establishment is in deep shit. Repeat, constantly lying to win elections doesn't cut it for long. Bring back Reagan's campaign promises for God's sake and run on it.
What has become obvious for the immediate future is that it's the
affordability index which counts the consumer's ability to buy big ticket items that counts. At this point in time, people's wages haven't caught up with inflation. Also, it should be no surprise to anyone that bankrupt people can't pay more for houses, stocks or credit cards even if you give it to them without a down, without credit checks or by using interest rate gimmicks. Any time you accede the consumer's carrying capacity for debt, you get a stop in buying. Nobody buys, nobody sells, nobody works, everybody screwed.
We'll have a mess for awhile until the system is cleared of all the junk bonds, sleazy loans and
incompetent criminals in Washington. Expect unemployment to sky rocket
and emergency measures to be taken until then.
Until this situation improves the government is simply wasting it's time. No one ever consumed themselves out of a bust.
Period! Sorry all you dreamers but only when we spend less and save more than we consume is there a surplus to invest for the future. No matter what the criminal class in Washington does! Remember: save and invest is the mantra.
Works everywhere it's tried.
boomers, depression, bust, affordability index, sin taxes, deflationary collapse, fundamentalism, Washington elites
