What sort of abject bullshit have the folks on Tout TV been running?
June 23 (Bloomberg) — Purchases of new homes in the U.S. fell in May to a record low as a tax credit expired, showing the market remains dependent on government support.
The entire economy is dependent on government support.
But the government has no money. It is in fact borrowing nearly as much as it takes in via taxes.
If you made $20,000 a year, and borrowed another $20,000, for how long would your credit card company allow that to continue?
Why does the American Public continue to lap up this crap from CNBS and other media, along with the White House and The Fed?
Can you not figure out what would happen to you if you tried to run your personal family budget the way the government does?
“Quantitative Easing”, “Easy Money”, “Zero down mortgages” and all the rest – it is all a scam designed to impoverish you by stripping you of every asset you have now and as much of your future earnings as they can get you to sign away.
Housing, education, consumer credit, all of it. A scam. Every bit of it. Top to bottom.
The entire intent of these “programs” has been and is an attempt to get you to spend money you don’t have and can’t acquire. The Government has built it’s entire “empire” over the last 20 years on the premise that it can continue to borrow more and more money, without any hope of ever being able to pay any of it back.
This was 3-4% of GDP, and is now 11-12% of GDP. It has been the latter now for more than two and a half years. It was mathematically impossible to continue at the former rate and obviously is impossible to continue at a rate three times the 2003-2007 borrowing pace.
We are in a Depression now and have been since 2008. A Depression is defined as a 10% contraction in GDP. But for the government borrowing 11% of GDP and spending it, GDP would have contract by at least the same amount borrowed and spent.
THAT IS A DEPRESSION and the intentional avoidance of recognition of same only accumulate more damage to GDP that ultimately must be faced and absorbed.
Geithner and Obama have continued to insist that we “spend and borrow more”, along with idiots like Krugman and Summers. Their entire model is predicated on what amounts to a claim of perpetual motion, which anyone with more than one hour of physics class knows is impossible.
It has been my position since I began writing The Ticker that this is an enormous fraud perpetrated upon the public, that it is not new, that responsibility extends to the banks, to the administration (both former and current) and to the media.
That all of the above have been and continue to preach that which is mathematically impossible, and that as this mess proceeds we will run into the hard wall of reality – that we have used credit as a means of pulling forward final demand rather than productive investment and that continuing to do so requires ever-greater amounts of credit – that is, debt – all of which has to be serviced if not paid down.
At some point it is inevitable that we will run out of the ability to continue to compound debt upon debt.
This is not conjecture, it is mathematics.
It is not open to debate, it is fact and cannot be avoided.
We argue when, not what.
I have been making clear that the “when”, at the point it arrives, will not provide you with a clean means to exit. It will come like a freight train barreling along at 80mph with you standing on the tracks and ignoring the whistle and the singing of the rails. If you are unprepared you will be smushed like a bug on a windshield.
“When” appears to be “now”, but you’re still, even with these numbers, not hearing the truth out of ToutTV. They don’t want people like me on the air, as math is boring and it’s sexy to tell people to “Buy Apple because the US Consumer will continue to buy more and more crap they don’t need and spend money they don’t have.”
Cramer was pumping that garbage line of BS again last night.
I know the heroin is enticing folks, and we as a society have been main-lining it for the last several years.
We’re coming up on the fatal overdose in our economy and the people who led you off the cliff are still playing their pied piper song.
I hope you’re ready.
