"Thought Experiment" time again. Perhaps your family might be like mine. My wife and I have one child, she is now out on her own and working. In our case, there are two taxpayers in our family. Two taxpayers who, theoretically, owe a cool quarter of a million dollars JUST to pay off our share of the National Debt!
I don't know about you, but our family doesn't have $250,000 just lying around to pay "our share" of this stinking debt! And if presented the bill, well we will not pay...
Spending MUST be cut! Will it? Hmm... Will spending be cut? NONE of the front-runners for next POTUS give me ANY hope of that. Spend and tax and borrow our way into oblivion. How will this end? Very badly is how. My guess is they will inflate it away. If that happens, inflation will hurt savers. They could also default. That would hurt anyone holding Treasuries, that would include pension funds...
UPDATE
Check out the video of painter Jon McNaughton. He is the guy who also did the other (famous now, and second link):
http://youtu.be/oRxMQhn0WAg
http://www.youtube.com/watch?
*****
I got the below fascinating link from Mish's blog (globaleconomicanalysis.blogspot.com):
http://www.nanex.net/aqck/2804.HTML
This link visually chronicles "High Frequency Trading" (HFT) from 2007 - 2012. The video starts out slow... But keep watching, the robots come in BIG in 2008 and go crazy in 2010!
I believe that HFT now accounts for over half the trading on the stock exchanges now. Goldman Sachs and others, all slaving away "doing God's work." It still staggers me that Lloyd Blankfein (head honcho at Goldman) said that!
Mish commented that SOMEONE must be making LOTS of money with so much HFT going on!
Hardly anyone I know is buying and selling stocks now, except in very small amounts. Why? Because we ALL KNOW that the market is rigged! Maybe it always has been (probably), but as they say now: "They don't even bother to hide it any more."
*****
So, what's a saver supposed to do to stay safe? Here are two for you:
1) Take a look at today's price movement in gold.
2) FOFOA gives us some ideas on what will happen "after the reset": fofoa.blogspot.com. His piece is excellent.......
not been sailing this week DoChen ?
ReplyDeleteI think Linda and Tom are made up friends who will probably be blamed for your inability to pay your share of what you rightly owe the Government.
Shame on you (-;