A Mystery of Life Solved
QUESTION: Why do governments borrow? Why do they never reduce the debt?
Jeff
ANSWER: Because they can. They actually think they are the exception to normal economics. People ask all the time, can’t they see this debt crisis? No. When I raise the topic in different discussions with various governments the reply is always the same – we are different. We are the government.
To them, let us say you go to a store and you want to buy $50 worth of something. The cashier tells you that will be $100. You ask why? He says the customer before you couldn’t pay his bill so it is your obligation to pay for what he bought. This is the way they look at things. Why pay off past debts when you can create new ones? What’s the point in running if you can’t do anything you want to do? That’s not fun!
The Destruction of the World Economy
The Senate subcommittee has been examining tax avoidance by multinational companies. Microsoft Corp. (MSFT), Hewlett-Packard Co. and Apple Inc. have all been the subjects of previous hearings by the panel. The 2013 investigation into Apple uncovered a subsidiary that earned $30 billion over four years with no home for tax purposes.
The subcommittee also has investigated and targeted Swiss banks such as Credit Suisse Group AG for aiding tax evasion by wealthy Americans. The results have actually been quite devastating. Now the multinationals are being hunted by everyone else as well – especially France. What is good for the USA, is now open sport for everybody else.
Based upon our preliminary examination, it appears that the world trade not merely took a huge hit on this turn in the ECM from the high in 2007.15, but the steep decline was the worst since the Great Depression. This is also accounting for the decline in liquidity and the new trend of FACTA passed at the bottom of the ECM in 2011. This sharp decline in world trade looks like it just may be the nail to closes the lid of the coffin on global trade.
The greed of governments all on its own is destroying the world economy without secret societies, clubs, or cabals. This hunt for taxes on a global scale is reversing everything we built coming out of World War II. Even the idea that a New World Order would bring peace and prevent a third world war has crumbled to dust and fallen to the ground. Not only experiments like the Euro have utterly failed, but this latest trend presuming anyone who does business offshore is ONLY hiding money from the taxman has had a devastating impact upon world trade.
It appears that the 2007.15 high may have been a Phase Transition high for we are declining and have not made new fresh highs in real terms. In nominal terms, it is possible we could see the FINAL high in world trade in 2016, which is a 72 year cycle from 1944 Bretton Woods. Curiously, 2007.15 was Pi or 31.45 years from 1975 the beginning of free markets when gold began trading on COMEX. That was 31.45 years from Bretton Woods.
Since our focus is servicing the world not domestic, we are perhaps confronted with this issue directly through our clients. It may be true that we are unique in this focus for now, but my bet this will become the issue upon which they blame for the next Great Depression with hindsight of course. I bet this piece will even be highly quoted 5 years from now.
It was a stunning statement of truth for the Russian head of State Nikita Khrushchev (1894-1971) who has been unfortunately better remembered for creating the Cuban Missile Crisis and his statement We Will Bury You to the USA. It was actually Khrushchev who reversed Stalin and began to engage the West. The Cuban Missile Crisis accomplished its goal and forced NATO to remove missiles from Turkey. He was the first step in reforming Russia shifting its direction following Stalin into oblivion. His statement that all politicians are the same worldwide was so true. They promise to build bridges where there are no rivers to cross.
This is the demise of the West. We are now watching the very destruction of society and everything we thought life was about because these people need money to hold the reigns of power. No private group will survive right down to the bankers. This is checkmate as it has always been throughout history – them against us. Don’t worry – they always lose. However, sometimes they have taken us with them into the abyss we call a Dark Age – the ultimate Mad Max Event.
FACTA – July 1st – 77,000 Firms Worldwide are Turning over Info on Americans
FACTA is coming July 1st. Already some 77,000 banks and foreign firms have signed up to rat-out Americans wherever they hide. While those who hate the “rich” cheer, what has been lost in this proverbial bureaucratic mindless rationalization of the real world is any understanding of how the world really functions.
Precisely like Obamacare that said everyone had to have maternity leave regardless of age, so even I lost my heathcare from Horizon Blue Cross, FACTAmakes the same stupid conclusion. They assume ANYONE with a foreign account must be evading taxes. Hence, no American, including myself, can have an account overseas even when doing legitimate business. These brain-dead nasty bureaucrats know nothing of the real world and cannot even contemplate that now no foreign bank will accept an American because they must report to the USA or have their own assets confiscated in violation of international law.
The very silver threads that tie society together are what is under attack by the Obama Administration. In East Germany, people could not trust anyone for everyone was a snitch. When you destroy those bonds that tie society together as a collective cooperative unit, you lose the whole. Like a string of pearls, they lose their elegance, beauty, and charm when they are broken apart in an individual heap. String them together and a synergy emerges that is greater than the sum of the individuals pearls. Obama is tearing apart the world economy, which can no longer function. Obama has torn asunder the very fabric that made society function. This attack by greedy bureaucrats lining their own pockets is no different when compared to the soldiers of the late Roman Empire who sacked their own cities to fund their pensions. Obama is destroying the world economy on such a monumental scale, the next decline will be far worse than the Great Depression and we will see the ugly head of protectionism rise again because these morons are incapable of comprehending their own actions.