"When logic and proportion have fallen sloppy dead"

"When logic and proportion have fallen sloppy dead"
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one man's capitulation  

Posted by howard in nyc in ,

some clown over at the sports frog recently posted this

sunday evening i pretty much reached a decision that i no longer trust the system at large to even hold my cash. and i no longer hold any hope in the monetary or fiscal policies of the federal government to achieve anything other than to simply repeat the past mistakes of politicians throughout the world and throughout history, and in the process make the problem much worse than it needs to be. primarily by attempting to meet the needs of the bankers, the financial elite, before attending to the needs of the people. and in the process, destroying the economy for all. if we are lucky. or, destroying our republic and our little 232 year experiment in the process, if we are unlucky.

the problem was created by too much debt, too much borrowing, too much deficit consumption. along with a healthy helping of fraud and theft. the solutions thus far attempted and proposed involve more debt, more borrowing, more deficit consumption. and ignoring the fraud and theft.

an economy that was 70% consumption, fueled by excessive debt, private and public, has now failed. no amount of spending, fueled by more debt, can possibly stimulate it back to function.

we had an economy based on borrow, spend, speculate. that is over. (or maybe at the outside, it can be kept on life support for a couple of more years, culminating in an even worse failure.)

if we try to change back to an economy based on work, save, invest, we would have some hope for the future. after the lunacy of our recent and current attempts at the impossible are revealed, we can return to those logical basics.

rebuilding an economy based on finance, insurance, real estate, and buying a bunch of crap made in china is folly. rebuilding an economy based on us manufacturing stuff needed by the rest of the world, or providing real services needed by the rest of the world, wake me when a politician starts talking about that.

the american people are already, out of necessity, unwinding household debt, and saving. the people are beginning to do the correct things. while the folks in charge do the opposite.

but i am finished. i fear some electronic, computer failure event that would be comparable to the analog bank failures of the 1930s (incuding the bank holiday of fdr), in that the accounts of millions of people, in banks, in brokerages, in money markets, or in various 401k plans, are wiped out instantly.

this may be a tinfoil fear. so be it. the downside of caution--i miss out on the 3% yield from lending my money to the treasury department for 30 years? or the 0.25% yield lending it to them for 30 days. bfd.

i'll play around with a gambling account. maybe. otherwise, the mattress and a few gold coins. i now expect the worst, without indulging in the luxury of hoping for the best. much is predictable. much is unknown exactly how it will play out. but we are fated to the failure of our leaders, trapped by dogma and the complete dominance of the ruling financial class in all political decisions that matter.

they cannot fix it. humpty dumpty will never be put back together. the more they try, the worse it will be. whatever pieces they leave, we'll gather and build anew.

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