Too many of our Republican friends are confident the Tea Party can save America from financial destitution. We wish they were right.
Ours is still a minority opinion, because too many people overestimate our political system as an agent of change. Only the cold, hard threat of a currency crisis can force the political class to surrender their spending, power, and domination over the economy. Here’s why:
Few GOP Members Even Understand
How Hopeless the Budget Situation Has Become
Precious few members of Congress understand the situation and even know how to explain the dimensions of the intractable U.S. spending dilemma (and why it can’t be solved by anything other than a currency crisis that forces true reform).
Consider the analysis and conclusion of South Carolina Rep. Mick Mulvany, a newer member of Congress who’s been looking at Uncle Sam’s cooked books and is fessing up to his constituents: “It’s much, much worse than I expected.” Rep. Mulvany’s analysis does better than most to explain our situation as a country. His apt conclusion as noted in The Wall Street Journal:
“Picture a family of four with an income of $46,000, annual costs of $78,000 and a credit card debt of $281,000… these figures are roughly proportionate to federal government revenue, annual outlays, and accumulated national debt.”
In addition to this unusually candid assessment, some 78-million baby boomers have already started to enter the totally bankrupt Social Security and Medicare rolls!
Enter the spirited Tea Partiers – their surgical cuts of $71 billion against the $1.4 trillion deficit has already been rejected as extreme. Now they are pushing for a thinner set of so-called cuts in the amount of $33 billion, a “controversial” .89% reduction in the federal spending behemoth of $3.7 trillion.
My friends, I know the political system well. And I certainly don’t fault the Tea Party. They want to be responsible, but no political constituency is capable of stopping federal deficit spending anymore. The only entity capable of saving our country and forcing change are broader market forces themselves, in the form of a vote of “no confidence” in the dollar by U.S. Treasury buyers and foreign financiers.
Bond King Bill Gross Joins Us in Shunning All U.S. Bonds
Details from the “bond king’s” latest observations about the instability of U.S. Treasury bonds, on which the government’s Ponzi financing scheme depends:Another keen observer, PIMCO President Bill Gross, has offered equally dire observations about the government’s collapsing finances. Gross, the head of the largest bond investment firm in the world, has recently pulled ALL his firm’s assets out of U.S. Treasuries (which finance public spending). Gross has raised eyebrows among those who pay attention – the world’s bond king has switched sides to what Independent Living has been telling you all along: U.S. government finances are hanging by a thread and the bond market is too politically manipulated to serve its normal function of warning investors.
Against this dire situation, Uncle Sam has no choice but to keep printing money like there is no tomorrow. This is a rock-hard fundamental that cannot be altered by traditional politics. It is the reason the bond king is bailing out of the dollar. We all need to do the same.