by Jeff Davis
Europeans seem to have a far greater awareness of the degree of trouble, that the USA is in, than anyone here does. The liberal media wants us to think everything is all “rainbows and unicorns” with Obama in office.
An article on Breitbart reports: “Economists peddling dire warnings that the world’s number one economy is on the brink of collapse, amid high rates of unemployment and a spiraling public deficit, are flourishing here. The guru of this doomsday line of thinking may be economist Nouriel Roubini, thrust into the forefront after predicting the chaos wrought by the subprime mortgage crisis and the collapse of the housing bubble. ‘The US has run out of bullets,’ Roubini told an economic forum in Italy earlier this month. ‘Any shock at this point can tip you back into recession.’”
“Back” into recession? Did we ever leave? Seems more like we bottomed out at about a 20 percent real unemployment rate while foreclosures and bankruptcies continued at an alarming pace.
Breitbart goes on: “But other economists, who have so far stayed out of the media limelight, are also proselytizing nightmarish visions of the future. Boston University professor Laurence Kotlikoff, who warned as far back as the 1980s of the dangers of a public deficit, lent credence to such dark predictions in an International Monetary Fund publication last week. He unveiled a doomsday scenario — which many dismiss as pure fantasy — of an economic clash between superpowers the United States and China, which holds more than 843 billion dollars of US Treasury bonds. ‘A minor trade dispute between the United States and China could make some people think that other people are going to sell US treasury bonds. That belief, coupled with major concern about inflation, could lead to a sell-off of government bonds that causes the public to withdraw their bank deposits and buy durable goods.’ Kotlikoff warned such a move would spark a run on banks and money market funds as well as insurance companies as policy holders cash in their surrender values. ‘In a short period of time, the Federal Reserve would have to print trillions of dollars to cover its explicit and implicit guarantees. All that new money could produce strong inflation, perhaps hyperinflation,’ he said.”
Imagine that: An economically illiterate African president resorting to printing money regardless of inflation. Does anyone remember Robert Mugabe in Zimbabwe?
The federal government is either going to commit to wild inflation or it’s going to run out of money. What happens if the United States government just plain runs out of money? When no one will lend us any more? When the tax revenues from a collapsed economy with massive unemployment won’t cover even the interest on previous loans and bonds? Eventually welfare and food stamps will have to be cut if not eliminated completely. Obama recently transferred money from food stamps so he could bail out a number of states, which are having trouble paying their teachers. Obama is struggling just to keep an illusion of “normalcy” up through the November election. After that, many states WILL start running out of money for teachers (and everything else) and the Feds will have to find billions of dollars somewhere to pay back the food stamps program.
The Democrats will choose to print more money, and then the final slide into collapse and anarchy will begin. The Europeans know it. The Chinese know it, which is why they’re trying to unload US Treasury bonds. Despite all the propaganda from the liberals, most Americans know that the economy is in terrible shape. They believe their eyes, not the propaganda from the liberal evening news.
by Ian Mosley
Looks like California, Illinois, and New York are going to get some competition in the race to bankruptcy. Pennsylvania is coming up fast on the outside and seems to be battling for at least third place.
The Financial Times of London (the best sources for news of the American economy are all British) tells us: “The state of Pennsylvania has stepped in to help its capital city Harrisburg avoid a default by advancing next year’s state aid so that the money can be used to make a $3.3m bond interest payment due this week. On Sunday, Ed Rendell, the governor of Pennsylvania, announced a $4.3m cash transfer and said missing the bond payment was not an option….Harrisburg’s strains have been closely watched as other US local governments and states struggle to close gaps in their budget amid falling tax revenues in the downturn.
Note that this is just to pay interest. Not to rebuild bridges or provide anything useful like firefighters or sewage treatment or electricity. It’s not even to repay the loan itself. This cash transfer is being done only to pay interest. Harrisburg was recently listed in a Top Ten Declining American Cities article on the Huffington Post. Even liberals are writing it off as a lost cause and basket case.
The Times article notes “For many months, Harrisburg officials have been debating how to handle its debt burdens and whether the city should follow a handful of other cities that have filed for bankruptcy. Harrisburg has already defaulted on $282m of debt in an incinerator project that the city partially guaranteed. The $3.3m payment due on September 15 is an interest payment on the city’s general obligation bond sold in 1997. Such municipal debt is sought out by many investors in the $2,800bn US municipal bond market because the GO bonds have a reputation as being safer than many other types of bonds. Payments take priority over other spending. A default on such a GO bond could have knock-on effects across the municipal bond market, increasing the interest payments that are demanded by investors and leading to a reassessment of default risks.”
There are almost three trillion dollars in municipal bonds for the US!!! Municipal bonds used to be reserved for special building projects. Today, however, with the ever-growing Third World parasite population in every big city and Third World people running the big cities, some big cities are resorting to borrowing money for routine expenses. Add to that the continuing Bush-Obama Depression, and we may soon see the first cities that fail to pay off their bonds.
In the Age of Obama, however, the bill has come due. Decades of slow deterioration are starting to catch up with America on every level, including our major cities. Everything is collapsing because everything is so riddled with corruption, incompetence, deceit, arrogance and madness.
Harrisburg, Pennsylvania is now a town with only one industry: state government, which has one financial foot in the grave and the other on a banana peel. There is no tax base any more since the minorities have clustered in from New York, New Jersey and Mexico and the White people, who work in the private sector, who actually create wealth, have fled. State and city bureaucrats are essentially parasites, and parasites cannot feed on other parasites.
Once a city fails to pay off a bond on time, its bond rating will plummet making it difficult if not impossible to borrow more money in the future. Many of these mayors and city councils were crossing their fingers hoping the economy would turn around and tax revenue would climb back up. Given the continuing state of the economy, a bankruptcy for many cities is almost certain.
While this all sounds terrible, and it is pretty terrible, we need cities and states to start going bankrupt to wake up White people to the fact that Diversity doesn’t work. If White people want the US to return to the prosperity of the 1960s, we need the same demographics as the 1960s, which means a lot fewer Third World people.