The NYT has just reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor has concluded that the commonwealth cannot pay its roughly $72 billion in debts, “The debt is not payable.” “There is no other option.” – an admission that will probably have wide-reaching financial repercussions…
The Chinese market is in an all out crash – The Shanghai Composite was down nearly 20% in just four days as the Chinese Plunge Protection Team finally arrived and ‘threw the kitchen sink’ at the stock market, deciding to go ‘all in’ stocks. This led to an unprecedented 11% swing from the lows – this was the single biggest intraday swing since 1997 and the largest point swing since 1992! China’s markets are imploding…
Most ‘critical thinkers’ know that an increasing debt burden cannot go on forever. Debts DO have to be paid. The modern world has been in a spending spree for decades and it has become so bad that it’s now ‘normal’ for people to accept saddling up with debt to their eyeballs – to the very extent and reaches of their ability to barely pay each month. It has become an entirely accepted way of life – and one of entirely false illusions of real growth and wealth.
Our governments pale in comparison. The debts that have accumulated across nearly all developed nations are extraordinarily and ridiculously monstrous, and entirely not payable. We have been fooling ourselves that we can go on living this way for eternity. Kicking the can down the road. All debt payments come due.
There are many nations in addition to Greece (and now the commonwealth of Puerto Rico) which are teetering and may be in the same boat as Greece soon enough… Contagion may be setting in. Most all nations are technically ‘broke’ right now. The question is how long can this rigged game go on? When will the dominoes start to fall? The first big one might be starting to tip as we speak…
I believe that most people have no idea as to the risk we’re facing today and the potentially terrible ramifications which will result when it crashes down to reality. When their so called ‘money’ becomes worth less or even worthless, there will be social chaos in the streets and a worst-case chain reaction could result in the deaths of untold millions as systems of distribution and supply chains break down all over.
And if (when) this finally happens, where do you think it will lead? WAR. Nations will fight nations for supplies and resources. We would likely be looking at World War 3.
You see, it is all very predictable. We (critical thinkers) KNOW that this balloon is going to pop (the debt balloon). And we know that the time is certainly close. While we don’t know exactly when, we do know how people at large will react (in shock and horror and disbelief). We do know that things could get ‘bad’ (putting it mildly). This is why we prepare.
On Monday, Barack Obama signed the unconstitutional Trade Promotion Authority legislation. After failing to fully get through the House on a first attempt, Republicans snuck it back in the very next week under cover of the Charleston shooting and later helped to pass it in the Senate with a vote of 60-38. However, neither House Speaker John Boehner (R-OH) nor Senate Majority Leader Mitch McConnell (R-KY would attend the signing of the legislation.
Two weeks ago, Boehner and House Whip Steve Scalise (R-LA) booted GOP Reps. Cynthia Lummis (WY), Steve Pearce (NM), and Trent Franks (AZ) from the whip team as retribution for their not going along with the establishment. Rep. Mark Meadows (NC) was also stripped of his chairmanship of the House Oversight Government Operations subcommittee.
Next up is the secretive Trans-Pacific Partnership Treaty. However, as William F. Jasper points out, now that Obama has gotten what he wanted from the Republicans, he's dropping the pretense about what he will do with that authority and now his handlers at the Council on Foreign Relations are looking to bring China into TPP.
First of all, this article isn’t about the poor financial decisions of the Greek government, whether social aid programs should exist, or if a bailout should have occurred in the first place. It’s about the real-life ramifications of an economic collapse on ordinary citizens who depend on fiat currency, consumer goods, and the availability of their wages when they need them.