Dear readers it seems I have to suggest some literature for you.
Check out the following books: “Bailout nation”, “Credit Card Nation” and “Human Action”.
In 1998 there was a nation-wide negative saving rate at work. And you know that was also the time of the Internet bubble. Now in this extra 13 years nothing has changed. The debt has again more than doubled and it’s still raising. You can not have wealth without saving. You can not get rich on Credit. So fact is with debts everywhere the end can not be avoided. Kredit expansion is according to von MIses, incurable either one stop is or the currency will break. And if a currency breaks, poverty is the new “middle” class… Now with forgetting to save things the middle class is starting to go down. I propose you check the diverse countries in the US and you will see where people save there will be much less suffering.
The US has overstretched their limits and in fact it’s the biggest burner of money with it’s military machine. Military machine is just good for one thing destruction. And So the military will take it’s part in distruction of the US. And Obama has nothing done to prevent this. I remind you of my critical entries here about Obama and in fact it’s getting even worse. See e.g. http://mises.org/Community/blogs/fdominicus/archive/2011/11/20/now-keep-your-breath.aspx. Really the US is gone, it’s just a death corpse walking. But sooner or later it will crush and this will be the start of another civil war. Now around 150 years after the last , we come back to it. It’s devastating. I propose to start thinking about leaving the US. You may escape the war. But maybe not. The debt race still is open all over the world. …..
Well I guess you have heard about Greece before. If you are wise 😉 and reading this blog and/or the older one you know that I’ve made my own calculations on the sparse information one could gather. In fact the financial situation of Greece is very diffuse, but now that you know Greece still must have some Millions left:
If we assume one tank is around 1 Mio €. Well the Greece will not have to pay that they maybe even will get them for “free”. Well if you’ve read the Books of Heinlein you know “There ain’t such thing as a free lunch”. And so the Greece will “just” have to bear “maintenance costs”, “fuel cost (this tanks are not that “thirsty” “just” 10l /km) and it’s fuel the Greece Army has not used up till know (according to http://www.griechenland-blog.gr/2011/usa-bieten-griechenland-400-kampfpanzer-m1a1-abrams-an/5788/) And what did some Trojan says. I do not believe the Danaer even if the give us gifts.
So in the end it will cost them dearly. One could imaging that because of Putins “move” for a panrussion Federation the Amercians would like to have well equipped “buffers” down there. Anyway as you might know also Greece and Turkey are not “that big” friends. And imagine what’ll happen if Greece will break down (you do not believe that could happen) Well think of Argentina, it broke down and suddenly the middle classes where “gone”. So don’t say it can’t happen. It had happened it happens (currently all European deledefs but one or so) are doing anything to make us European more poverish.
And the Americans among you (at least I hope a few are there) , know what it means to live in over-debted countries. And well you middle class is also diminishing. Because neither in the US nor in the EUR zone there is something like market. The bureaucrats and deledefs make the rules and you have to obey at a point of a gun. And well because it is better that the money is in the hand of government (because of it’s great justice) they have to take it away from you..
So the moves should make you think. Why would one support other governments with more and more deadly weapons. Look at Syria, look at Lybia and you may have you answer. It could mean martial law! And if the military is at the top of government, you know war is nearly inevitable. You also know that human rights do not count much in the US any more. There still is Guantanamo there still is Abu Ghreic, there still is torture and well there is “killing” in the name of “freedom”. What freedom is “dictatorship”. So draw your own conclusion. I’m worried and it’s getting worse day-by-day.
Ah, well somone would call it “Living in interesting times”. I’d rather read it like, going to die.
The EU considers now (b)failing out Countries, our first try Greece, next stop (who knows) but it can’t took that long
till it’s Germany. I guess this will be the mother of all failouts. I wonder which country can affort to buy out us Germans. I don’t expect the USA beeing capable of that.
No bailout has worked till now but that does not hinder politicians to try again with another trillion…
Howerver if there are laws against such things. In short it’s. “No country has to guarantee for debts of another country”. So yes it was “never” allowed to do so, but
they’re trying hard to “revert” that. And from there on moral hazard is all there will be. Who will judge which country to bailout and which one will be allowed to fail.
The end will be poverty everywhere and with high likliness, war. It never has been different and I’m not that optimistic that this will change. After the war there will no welfare any longer
just what people will do to help another. And the buroeaucrats will linger in the background, waiting patiently to show there cruelty again…