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Economy

Of Risks and Big Money: Time Is Running Out

If I’m reading the tea leaves right, big money is making its moves. None of us can count on the system working in our interests, especially the courts and regulatory agencies who are entrusted with fairly administering the rules and laws that govern control of ‘our’ financial assets. But there are things we can and should do in response.

user profile picture Chris Martenson Mar 29, 2024
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What happens if we keep on our current fiscal and monetary trajectories?

The US government faces a Hobbesian choice moment – one where either choice is terrible.

The first, and most likely decision, it can make will be to keep spending and pretending.  The problem with this program – currently accumulating a fresh new trillion of debt every 100 days, is that eventually, it destroys the bond market.

Such an event would be catastrophic for the US and its citizens.  A frozen US Treasury bond market where the government cannot reliably churn its excessive wall of ever-maturing debt would be pure chaos for financial markets.

So the bond market has to be preserved at any and all costs.

And it will be. But first let’s briefly touch on the government’s second option just for the sake of completeness.

The government could decide to do the responsible thing, admit that we’ve been living and spending beyond our means for a long time and that it’s time to live below our means to get all this back under control.

The term for this is “austerity” which is a completely unfamiliar term to politicians but one that many families know well.  “Do I eat properly this month, pay the rent, or pay my other bills?”

(More…much more…)

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Top Comment

Well, that sums up the situation. Your summation of the predicament is, as usual, disturbingly clear. There’s no way out - especially with...
Anonymous Author by rector
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