Monday, January 21, 2013
Certainties (as opposed to predictions) for 2013-2014
a) The Government will continue to borrow 40 cents of every dollar they spend.
b) The Official Federal Debt will continue to expand by over a trillion dollars a year
c) The GAAP Accounting Federal Debt will continue to expand by over 4 trillion dollars a year.
d) Obama and the Democrats will expand government spending by protecting all transfer payments - social security - medicaire - medicaid - etc etc. All of which expands naturally as the population expands.
e) Republicans will expand government spending by protecting Military Spending which is steadily 25 percent of an expanding government spending. Republicans will also expand government spending by protecting corporate welfare which drastically decreases the tax base so that Government spending must be funded through borrowing.
Meanwhile Republicans and Democrats will engage in endless battles over things have no bearing whatsoever on the Federal Budget or the economy (like the debt ceiling.)
f) The Federal Reserve Bank of the United States will continue to print Several Trillion dollars a year (29 Trillion over the last 5 years) and give this money to the world's largest banks.
g) the ECB and the Bank of Japan will continue to follow the Fed's lead in printing money to funnel into the global banks.
H) They will all continue Zero Interest Rate Policies that benefit the Global Banks and punish tax paying savers.
I) They will all jawbone endlessly about Recovery and Exit Strategies that will never materialize
j) the World's largest Banks, recipient of trillions of dollars of tax payer money will continue to use this money to gamble in the risk markets, and award themselves enormous salaries and bonuses.
K)They will all jawbone endlessly about Recovery and Exit Strategies that will never materialize
L) The average taxpayer will see his wealth erode as the value of the paper money in which it is denominated erodes. Meanwhile, on an absolute basis the cost of living will increase as Medical Costs, Insurance costs, Education Costs, Heat, Gas, Food, Rent, (Things everybody needs) all increase.
M) the Global Banking cabal will insist that the cost of living is decreasing under Disinflation, as they will point to the lower cost of discretionary expenditures (crap nobody needs).