29 Comments
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Charles "Pappy" Thomas's avatar

Spot on write-up. Thanks! Money, at the levels we're discussing - billions and trillions - doesn't represent currency as much as it represents power. And power is not let go of lightly. The American public is, for many reasons and some of their own doing, powerless under our current Government. So guess who will take it in the shorts? Prepare now because the way down is going to be rather painful.

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Frank Thomsen's avatar

The elephant in the room is our national debt. It never gets discussed and grows exponentially without concern or discussion. It’s pretty obvious that the discord we have today is so full of hate and fear that responsibility and accountability have been replaced with blaming and excusing with complete impunity. It’s so insane!

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James Nearen's avatar

Sadly, I know several highly intelligent people who turn a deaf ear to the collapsing state of our government, currency and economy. They see no danger and downturn in our future. As for me, I am frantic with concern and at a loss how to protect my investments. Crypto? Precious metal? Real estate? Everyone has an idea, but none seem compelling.

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Rich Mohlmann's avatar

Bullets

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DeLena's avatar

A great--if terrifying--article. And you had me believing every word,right until he very end. Then you said, "But it's ultimately the voters who run the joint." And you are delusional. If we ran the joint, we wouldn't be stuck with two worst options, or a congress of selfish incompetents. All we can do is try to hold on as we crash.

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Deborah McQueen's avatar

Couldn’t agree more.

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Crixcyon's avatar

Debt may sink the 95% who are not rich, but those at the top believe no matter what happens they will survive any financial tsunami quite well. Will they?

No politician wants to reverse course, they have it too well as they are free to rape the country of all its wealth and production. They spend more and more money on inventing more tyranny and control. Government is all about control. They want to control the demolition of the bottom 95% while remaining at the top of the perch unscathed. That is to say demolish all covenants and financial obligations to the "outcasts" below them.

These are NOT the brightest people on the planet; only scared little turds trying to do anything to keep from being flushed into oblivion with the rest of us. They caused these economic troubles yet are oblivious to that fact as they stick their heads farther up their behinds.

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Blue Vir's avatar

The rich too got brought down by the Great Depression

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Positively Paying It Forward's avatar

I believe it’s called:

Cranial-rectamiacis.

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Ray Horvath, "The Source" :)'s avatar

The US was used by the globalist forces for consolidating their power. Since the Federal Reserve Act of 1913, they have been controlling the country, and the global domination was completed with the domination by central banks in over 160 countries, through which they gained full control over the money flow. Fiat currencies are now so overwhelming that the world's gold supply could cover only about 2% of the money in use, so there is no way of going back. Beyond that, all these countries use their subjects as collateral for the "loans" with "money" that has no inherent value...

https://rayhorvaththesource.substack.com/p/government-property-in-action

The US government is a tool for foreign occupying powers.

The controlled demolition of the USD, along with the country, is in progress. Even the chess moves are clear. Well, to me, they were clear already about a year ago:

https://rayhorvaththesource.substack.com/p/the-final-stage-to-a-one-world-government

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Deborah McQueen's avatar

. “Beyond that, all these countries use their subjects as collateral for the "loans" with "money" that has no inherent value...”……ergo rampant immigration as a hedge against low birth rates in western countries.

https://rayhorvaththesource.substack.com/p/government-property-in-action

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Ray Horvath, "The Source" :)'s avatar

Yes, that's part of the plan.

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Tom's avatar

Outstanding piece Dr. St. Onge. The only thing I would point out is that on Ukraine, the Rs are slightly less horrible than the Ds. There is a reasonably large contingent of Rs that are opposed to throwing more money down the Ukraine hole while the Ds remain steadfast in their fanaticism to stick it to Putin.

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Eugine Nier's avatar

Pretending the rest of the world doesn't exit, won't make it go away.

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MCL's avatar

There are surely plans being laid that will be sprung with the next fiscal crisis. Things like Universal Basic Income, aggresive death taxes, steeper graduated income tax, and Universal Healthcare with the Insurance industry sacrificed as a scapegoat. They will probably start a war too. The intent will be to charge up emotions because thats the best time to manipulate and exploit. Warfare, welfare, climate hysterics, cancelling student debt, growth of the administrative state, illegal immigration are all tactics to accelerate the fiscal crisis timeline.

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Economart's avatar

Absolutely correct. Capital generates returns. Money commandeered by govt usually results in a loss of $4 for every $5 taken. With total US government expenditures at all levels now about 40%, 1/3 of the economy, of scarce resources, goes to complete waste.

An economy is about resources and their distribution. It is not about money, though that is important sometimes. Placing such resources into the hands of those who can best use them, a free market economy, is the best economy. Voracious government has ruined it all.

Here's an article I wrote on the costs of Taxation sometime ago. It should have been titled, "An End of Tyranny", but editors.

Enjoy.

https://www.realclearmarkets.com/articles/2021/03/31/a_case_for_government_as_a_borrower_to_end_tyranny_770572.html

Regards,

Gary Marshall

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Franco Righi's avatar

The US has the second largest debt in the world after Japan (Italy, my country, is third).

But the question is: where does the money go?

1. The US has 750 military bases in 80 countries and 173,000 troops deployed in 159 countries. You do the math.

2. Since WWII America intervened somehow (bomb attacks, sabotage, attempted regime change, wars ..) more than 65 times in 53 different countries.

3. The US has by far the largest defense system (air, ground, water, sky ..) in the world.

So the military is by far the #1 place where the money goes. #2 is social security, #3 infrastructures (highways, roads, hospitals etc..)

The Fed can always print money and the Treasury can always issue bonds and bills.

But what happens if military spending isn’t reduced substantially instead of increased by the minute, if Japan sells & China stops buying the debt (as they are both already doing)?

THE EMPIRE DOES SINK.

Buy Bitcoin!!!

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Liz Burton's avatar

Private debt probably will,but not the “national debt”.

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Michael's avatar

No, that will be done by the left wing liberals

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John DeMarco's avatar

If you think a Trump presidency will slow down the debt train, even with a Dem congress, you're smoking something good.

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Economart's avatar

I hate to keep pushing the same line, but most people have a very poor understanding of Public Finance, yourself included, Mr. St. Onge.

Your basic premise is that govt generates revenues to pay for its expenditures, that the Deficit is only the portion spent in excess of tax revenues.

Well, taking is not generating revenues. Why you and your entire profession cannot grasp this simple fact is beyond me. The Deficit is every dime govt spends as govt contributes nothing to public expenditures.

Ignorance of this has created the most absurd ideas and prescriptions.

If one were to impose punishing tax increases and erase the presumed Deficit, would all be well????

The problem is not how govt fills up its money bags, but rather how it empties them.

I would happily debate any economist on this issue, but none seems to have courage or conviction.

Regards,

Gary Marshall

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Stevo D's avatar

Good insights. Similarly, the calls for higher taxes on the rich to plug the deficit hole, ignore that the rich typically deploy money to improve the capital base, increase productivity, and produce tangible goods routinely used and needed in the economy. Money funneled to the government is spent or transferred back into the economy with little economic benefit.

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Economart's avatar

Absolutely correct. Capital generates returns. Money commandeered by govt usually results in a loss of $4 for every $5 taken. With total US government expenditures at all levels now about 40%, 1/3 of the economy, of scarce resources, goes to complete waste.

An economy is about resources and their distribution. It is not about money, though that is important sometimes. Placing such resources into the hands of those who can best use them, a free market economy, is the best economy. Voracious government has ruined it all.

Here's an article I wrote on the costs of Taxation sometime ago. It should have been titled, "An End of Tyranny", but editors.

Enjoy.

https://www.realclearmarkets.com/articles/2021/03/31/a_case_for_government_as_a_borrower_to_end_tyranny_770572.html

Regards,

Gary Marshall

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Lawrence's avatar

well said and morally put God first as our founding fathers did , no abortion don't endorse it Trump for any reason or God will punish you and all who endorse this , win election but not by sin. be honest and the good people will back you , and God will save the good and destroy the evil

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Stegiel's avatar

Yes it did. Now the interesting thing is Debt. No large global state lacks it. https://tradingeconomics.com/country-list/government-debt-to-gdp?continent=g20

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