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Debt

CBO Predicts 2018 Will Mean Unsustainable Debt

us over cliff The CBO predicts 2018 will end a good period in American finance, but he is assuming the economy continues to recover. I expect the mainstream media, to the extent they cover the story, will spin the Congressional Budget Office report as a “glass half full” story. But the CBO predicts 2018 will be when the glass starts emptying. I think the Washington Times headline is accurate: “CBO report forecasts unsustainable debt in long term.” The economy is sluggish but growing and inflation remains Read more [...] Continue reading →

Student Welfare for Post Graduates and Universities

student loan bubble Here’s another boondoggle brought to you by our government: post graduate student welfare as loan forgiveness. Basically, public debt and/or taxpayers are being used to provide people going into professional and profitable careers a massive subsidy. Perhaps more importantly, the government sustains the college tuition bubble a bit longer by providing this subsidy. When you hear candidates try to come up with a way to give out free community college, you might get the impression that we are Read more [...] Continue reading →

Telegraph: Economic Doomsday Is Here

stock market crash The inevitable collapse of China is finally happening and with it comes economic doomsday — but we should welcome it. The Telegraph has an excellent account of what is happening in the world economy: “Doomsday clock for global market crash strikes one minute to midnight as central banks lose control.” Here is a video that illustrates the report: The article begins with an obvious whitewash: When the banking crisis crippled global markets seven years ago, central bankers stepped Read more [...] Continue reading →

More Taxes and Debt as Gov Consumes, but Spends More

tax_revenues-through_july-record-chart The government continues collecting more taxes and debt. That which is unsustainable will not be sustained. Back in September 2014, Bob Allen wrote about “Record Revenues for the Federal Government as the Debt Grows.” Sadly, the trend hasn’t stopped since then. CNS News reports, “$2,672,414,000,000: Federal Taxes Set Record through July; $17,955 Per Worker—Feds Still Run $465.5B Deficit.” The federal government raked in a record of approximately $2,672,414,000,000 in tax revenues Read more [...] Continue reading →

After Greece, Will Italy be Next?

fall-of-rome The capital of Italy is said to be on the verge of collapse. Spain or Portugal may go first, but this story in the Telegraph about the situation in Rome makes me wonder if Italy is going to be next to follow Greece despite the competition for that “honor”: “Rome is on the verge of collapse and needs urgent repair, leaders warn.” The Eternal City is facing crisis, with its administration engulfed in corruption scandals and debt, its roads scarred by pot-holes, the main airport partially Read more [...] Continue reading →

Venezuela Hyperinflation: This Is Where Socialism Goes, and So Do We

crash and burn cash Both Greece and Venezuela show us slightly different versions of the future we are being led into, but no one tries to stop it. I think the most frustrating thing about what is going on in the world right now is that we are all simply accepting that there is no other path we can travel. We are just standing in a single line to a very unpleasant crisis, with no thought of breaking out of it. Our only comfort is that other nations are ahead of us in line. That doesn’t help unless we use the Read more [...] Continue reading →

CBO Admits There is No Way to Predict U.S. Financial Crisis

fiscal cliff_02 Since I posted yesterday about one cause of our impending financial crisis, here’s another issue mentioned by the Congressional Budget Office. I have written about how using fantasy figures as the basis for pensions is sending us into a financial crisis, but there are other problems as well. Even the Congressional Budget Office is admitting to the seriousness of our situation. CNS News reports, “CBO: Debt Headed to 103% of GDP; Level Seen Only in WWII; 'No Way to Predict Whether or When' Read more [...] Continue reading →

Fake Success: Fake Schools in Afghanistan, Courtesy of the U.S. Government

burning money The schools in Afghanistan that our government claims to have built and run… don’t exist. There is one major school that still kind of exists that was reported to be a wild success. It did start well. Nearly four years later, water seeps through the leaky roof and drips onto students in this more than $250,000 construction. Doors are cut in half; some are missing altogether. There is no running water for the approximately 200 boys — and zero girls — who attend. But the school did enrich Read more [...] Continue reading →

Insight into How We Are Turning into Greece

Debt Hits the Fan In order to turn a town, city, state, or nation into Greece, you just need obscure terminology and plausible deniability. The New York Time’s Dealbook blog has a great recent post: “Bad Math and a Coming Public Pension Crisis.” The thing to remember when you read the post is that someone could have reported this five years ago or ten years ago. It could have been an above-the-fold headline instead of a blog post. It could have been a series of stories. But no one at the Times wants Read more [...] Continue reading →

Study: Student Loans Raise Tuition Prices

student loan bubble If you think government-subsidized student loans are to help students, you are confused. Awhile back I wrote on another topic: Here is a phrase I suggest you memorize for future political analysis: “The purpose of NASA is not to explore Mars but the purpose of Mars is to fund NASA.” Whenever you wonder why something like public education or welfare doesn’t work, just repeat that slogan to yourself. It will allow you to understand two things: You are reading the “plan” backwards. Everything Read more [...] Continue reading →

China Collapse Worse than Greece?

stock market crash Australia media is reporting on a China collapse that might be “monstrous.” An Australian news outlet is reporting, “Chinese chaos worse than Greece.” WHILE the world worries about Greece, there’s an even bigger problem closer to home: China. A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder. And the effects for Australia Read more [...] Continue reading →

The IMF Has Arranged Financial Doom for the EU

euro house The financial doom will be when every insolvent nation demands the same bailouts that Greece is getting, even though they are too big to bail. “Tyler Durden” at Zero Hedge asks, “Did The IMF Just Open Pandora's Box?” By now it should be clear to all that the only reason why Germany has been so steadfast in its negotiating stance with Greece is because it knows very well that if it concedes to a public debt reduction (as opposed to haircut on debt held mostly by private entities such as Read more [...] Continue reading →