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Fast Eddy's avatar

The GOP passage of $9.4 billion of DOGE cuts is nothing more than a PR stunt to convince the ignorant masses they are actually doing something about the deficit. The dopes making bets on Draft Kings and posting videos on Instagram have no concept about how ridiculously out of control our government has become. They add $6 billion to the national debt every single day, so their $9.4 of “cuts” will be gone in 37 hours. Our deficits are big, but they are not beautiful. Our deficit in FY24 was $1.8 trillion. Through the first 7 months of FY25 the deficit is $1.049 trillion. At the current rate of spending, the deficit will be $2.2 trillion by the end of the fiscal year.

Interest on the national debt is now the second biggest expenditure and has gone from $500 billion during Trump’s first term to $1.3 trillion today. These deficits are clearly unsustainable, and anything which is unsustainable will not be sustained. But the corrupt, captured politicians and insatiably avaricious Wall Street bankers will keep dancing until the music stops. Then they will use their next engineered financial crisis to take more of our money and further restrict our liberties and freedom. CBDCs and social credit scores anyone?

The real reason Trump and the GOP need to pass the big beautiful, bloated pig of a bill is because our Ponzi scheme economy depends upon the never-ending issuance of trillions in debt every year to give the fabricated appearance of stability. This is why the GOP applauds Musk’s low hanging fruit DOGE cost savings and ignores them in their outrageously corpulent budget bill. The truth is any actual reduction in government spending (36% of GDP) would ripple through an economy entirely dependent upon government largess and immediately create a massive recession and probable depression.

Ponzi schemes have to keep growing until they run out of suckers believing the bullshit underlying the Ponzi. This is where those controlling the levers of society (Bernays’ invisible government) utilize their limitless well of propaganda techniques, technological distractions, and mindless entertainment venues to keep the ignorant masses amused, delusional, and living in denial of the reality staring them in the face.

Since the 2008 financial crisis we have been muddling through economically at a 10,000 feet macro level, with periodic crisis episodes (housing collapse, fake pandemic) utilized by the powers that be to issue trillions more debt as the antidote to the initial crisis created by too much debt. At a micro level, the average American has seen a significant decline in their standard of living, as official government reported inflation has eroded 40% of their purchasing power, when in reality they have lost more than 60% of their purchasing power. The reality for the average American prole is debt slavery, either self-imposed to keep up with the Joneses or forced upon them to survive this globalist-imposed death by a thousand cuts economy.

Credit card debt of $1.3 trillion is at an all-time high, up $350 billion (35%) since 2020. The average balance on those credit cards is over $7,000 and the average interest rate on those unpaid balances is over 21%. Student loan debt of $1.8 trillion is at an all-time high, up $100 billion since 2020, with over 25% of these loans in default. Auto loan debt of $1.7 trillion is at an all-time high, up $350 billion (27%) since 2020. The average length of these loans is now 70 months. The borrower is underwater by the fifth year of these loans. Shockingly, credit card and auto loan delinquencies have been soaring in the last year, with credit card delinquencies above 3% for the first time since 2012, and auto loan delinquencies surpassed 8% for the first time since 2010. Does that sound like a consumer on solid ground?

In addition, the housing market is a disaster looking for a trigger. The Wall Street hedge funds (Blackrock) bought up millions of homes, driving prices 140% (Case Siller Index) higher than the 2012 low, while outstanding mortgage debt has risen from the 2012 low of $13 trillion to $21 trillion today. Prices are ridiculously high and mortgage rates of 7% make it virtually impossible for an average working stiff to buy even a small home. The market is frozen.

This is why Trump and his GOP minions must avoid a recession at all costs by continuing to rack up $2 trillion annual deficits. A recession would result in millions of layoffs, which would mean unpaid mortgages, which would mean foreclosures and slashing of home prices, which would trigger housing collapse 2.0, which would turn the recession into a depression, causing a stock market collapse. Now you know why they are desperate to pass this big, beautiful behemoth of bilge.

The Fed is in a precarious position of their own making, with all choices pointing towards disastrous outcomes. They are already sitting on over $1 trillion of unrealized bond losses, while their Wall Street owners sit on another $400 billion of unrealized bond losses. If these entities ever have to realize those losses, our entire banking system would collapse. The Fed has cut rates by 1%, but market rates went up, as their power to mislead market players diminishes.

They have reduced their balance sheet from $9 trillion to $6.7 trillion. The last time they tried to reduce their balance sheet in 2019, the repo market spasmed and they used the Covid cover to drastically print more fiat. Trump is mocking Powell and demanding interest rate cuts. Powell is pretending to be independent, but he is praying for some kind of crisis to again set the printing presses to hyper-speed. I’m sure the ruling oligarchs are hatching a new crisis to expand their wealth, power, and control, while further impoverishing and enslaving the plebs.

https://www.zerohedge.com/geopolitical/we-are-being-amused-abused-death

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Klin's avatar

No Hoolio pic? Booo...

I hope he's fine. :D

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