The consensus in the world of high finance and big business is that a financial Armageddon is approaching rapidly. The question is will the U.S. dollar collapse that will then lead to a breakdown in the banking system?
Financial Debacle
The Freddie Mac and Fanny May loans that were bundled then sold worldwide to foreign banks was the start of the worlds financial woes. Since then the situation in Greece provides insight as to how a socialist society that was spoiled by lavish government programs reacted when the line of credit was exhausted and had to lean on the world community through the International Monetary Fund to keep from collapsing.
Panic Continues
Panic appears to be driving the IMF and the European Union to continue to bailout Greece throwing good money after bad debt. They are shaking in their boots at the prospects of what may happen if they do not continue to support this wasteful policy for fear that other EU nations also wobbling on the brink of disaster will be immediately engulfed in a full scale financial meltdown. Germany is in the forefront to keep Greece from imploding from the debt crisis. Logic is being driven by fear that if the first domino caves it will knock down Spain, Portugal and others hobbled by Greek debt destroying their common currency the Euro.
America Tied to Greek Debt
In just the last few weeks the president of the United States pledged a billion dollars, that we do not have, to back the latest panic loan to keep Greece out of total default. That, however, is not the greatest risk. It turns out that U.S. banks may hold up to 50% of all Greeces debt, while there is a strong possibility that U.S. banks may fall like dominoes in our own domestic banking system. This will make Freddie and Fannie look like a school-ground picnic.
Red Flags Not Enough
With all the red flags, bells, and whistles going off the economists fare saying that you cannot sustain more debt when you have less coming into government coffers than going out, the U.S. still continues down the path of Greece with reckless abandon. Elected leaders, however, are undaunted while still creating new government agencies, like the one announced by the president called the Better Buildings Initiative that will help our government buildings become green enough. Despite the fact that we are dealing with a dire economic calamity currently driven by undisciplined, unhinged government spending practices and lectured by the powers that be to identify more green projects, this type of unmitigated moves towards bankruptcy should be brought to a halt immediately.
Flash Mobs
Is the demand for more government handouts so strong that our cities will turn on themselves with riotous protest at the very prospect of any curtailing of government benefits? The smart answer would be a definitive yes. The social network communities have been organised to the extent that we are only a small tweet from a flash mob showing up and burning down the block. Just look to what has gone on in the Middle East with the so called democracy demonstrations, in Vancouver Canada with a call to demonstration because their favorite hockey team lost, the riots in the streets of Greece because benefits were being cut, and there was union mob action in Madison Wisconsin when minor adjustments to government employee guaranteed benefits was throttled that led to weeks on end of protests. If you think it could not happen here if Social Security checks did not go out on time you are sadly mistaken. It could and it would!
Basic Laws Have Been Violated
The basic laws of arithmetic have been violated in the instance of the debt ceiling being raised. You cannot go on raising the limit on your credit card and then paying just the minimum payment. Eventually the credit card companies will expect you to pay off the balance somewhere down the road and it is the same way with the government debt ceiling. Consequences down the road are inevitable if we keep spending more then what is coming into government coffers and borrowing more to keep afloat. This may be creative accounting, but somewhere down the road the wolf will be at the door. The debt bubble will soon explode with everyone catching a piece of the fl-em.
The Beltway Boys Are Living the Dream to Excess
The mainstream media reports what they call the truth that is anything but, our educational institutions teach what they call the truth that is mostly revised history, and now many of our elected officials have turned from basic reality and are living the high life on our dime. With so many new jobs created in Washington DC lately by the politicians is it any wonder that there economy is very robust and very unlike the rest of the country.
Conclusion
When all this contrived Washington largess goes away sometime in the not to distant future and we are all left to balance our own budgets and eventually learn to live within our own means, will government ever get a balanced budget? Or will it be business as usual, smoke & mirrors, until the nation collapses under the brunt of its own debt ceiling? Monkey see monkey do? You betcha!
