THE US FISCAL HEALTH: NOTHING TO SEE HERE

 

The fact of the US fiscal situation is this: Defense, Entitlements and Interest Payments - three things that only go up - never come down - are now 120 Percent of tax receipts.

Do the math.  

All the difference to pay our obligations and anything discertionary: infrastructure, scientific exploration, disaster relief, war, ANYTHING comes from PRINTING MONEY:

INFLATION.

This is a fact.

This is another fact: nobody running for political office talks about this.  Because nobody has the courage to lose their job over telling the truth: we have to cut our spending.  (and tax cuts is the exact same thing as spending in this environment because they add to the deficit - the last three trillion of tax cuts added three trillion dollars to the deficit and that much more in interest payments.)

Nobody Cares.  Everyone complains.  But nobody is willing to even talk about the real problem. 

In stead, everyone talks about Social Issues, Lefties, Fascists, Socialists, White Supremacists : Fear, Crime, Immigration, Climate Change, Palestine, Abortion, Transgender High School Swimming Scandals, the war on the Bible, Gun Safety, the War on Christmas, Wokeness (whatever the hell that is), the war on Democracy, the war in the middle east, the war with Russia...

Anything but the one thing that really matters to everybody's quality of life - except the billionaire class.

And that is the fact that as our debt soars, our two fiscal choices are INFLATE or DEFAULT.

If we default all asset prices will crash and chaos will ensue. In the Chaos only gold and hard assets you can protect with your guns will survive.  So it is not likely the Govenment will choose to default.

That leaves Institutionlized Global Inflation forever - or at least until  we have a crisis stemming from that fact that nobody can afford anything.

In that scenarion every asset inflates - except bonds - and then as proift margins get crushed, stocks crash,  then as nobody but billionaires and private equity can afford a house, housing crashes,  and  then as everything becomes too expensive - everything crashes but gold.

That is where we are.  That is who we are.  It takes time to unfold.  But as Hemingway said: Gradually - then suddenly.

Prepare yourself.