1.2 Trillion in home default is not the big kahuna. Right now shopping centers around the country are going into default which are going to leave
banks with another big hit. Banking as we know it is over. The US government is not in a position to do anything about bank bailouts again. They
shot that bullet and don't have another one. In fact, the US government is now toying with default (as predicted 3 years ago when they took
responsibility for the banks). Basically, we have no mathematical model that can prevent total economic collapse. However, we don't know what a
total economic collapse actually means because we have never had one before.
This whole thing actually illustrates the validity of the bible which proves the mathematical model of borrowing can not be sustained over a long
period of time. The bible talks about a jubilee year (every 50 years where debts are obliterated). www.growthingod.org.uk...
However, jubilee is not a method of achieving socialism where living beyond any reasonable means is the accepted way as endorsed by the Kenyan Obama.
Socialism and jubilee are not the same thing.
Because the world does not have a jubilee concept, we are forced into economic collapse instead. Again, we don't know what that means. The US was
set up as a ponzi scheme over the past 4 years to prop up failed banks and a failed economic system so it doesn't look good because all it did was
kick the can down the road to where we are today. Now they want to raise the debt ceiling and kick it down the road another few months.
Unfortunately, spending reduction alone will not solve the problem. Nor will raising taxes. The problem is mathematical compounding of debt
interest. The only way to solve this is through inflation. However, if inflation is allowed to run rampant, then that can have a negative impact on
the economy as well because much of the population is now on fixed incomes and may not be given inflationary raises (especially in this political
Some of the easy targets of course is military spending, etc. etc. (again spending reduction as a means of solving the problem). Or social spending
if you are on the other side of the political basket case.
My take on it is that something else is going to happen at the same time this economic trouble is brewing (why I am not a proponent of a reduction in
defense spending). What ever it is it could not be good. But unfortunately, that is Murphy's law. It is not just arbitrary, others prey on
weaknesses of adversaries and the US has adversaries.
In otherwords, I would keep a positive attitude and be flexible because no one knows for sure how it is all going to play out. America is far from
being a total victim here. There is a lot that can be brought to bear. We have an enormous military, we have very ingenious people (outside of the
media), we have a lot of natural resources so it is far from being an unstopable disaster. It is just that the status quo might change somehow. You
have to be like the Irish that came here with the shirts on their back and took a homestead in Oklahoma or the Mormons that walked to Utah. You just
have to have a good attitude.