View Single Post
 
Old 03-11-2019, 03:12 PM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,497
Limits of GOV,,,, limits of debt

Keep in mind that society and the state are 2 completely different types of entities. The founding fathers wanted the state to remain quite small. After all, they wanted the parasite to be very small in comparison to the producers. The State is like any other parasite. It doesn't want any limits to it's growth. The lifeblood of the State must be taken from producers. It must constantly extend it's reach if it is to grow. This necessitates more centralization to draw in more support. That is why the State is on a constant hunt for more sources of taxes and fines.

" The limits of politics are the limits of government. In the present era, all government seeks to further centralize power and capital because the era's quasi-religious belief is that centralization is the solution to everything.

This is of course false. Centralization works until it becomes the problem, at which point further centralization of power and capital only speeds system-wide failure. "
" As a result, the greater the government's power, the greater the polarization as the self-serving elites seek to protect their share of the pie as the pie shrinks. Each camp becomes increasingly extreme, and compromise is recognized as a process that erodes every camp's power and income.

The political solution is take-no-prisoners domination and the eradication of rivals' power to veto or contest the domination of the winner. This drive to polarization is the result of centralized elites attempting to distribute the system's increasing failure to their competing elites.

This is the politics of decline and collapse. This is the only possible output of centralized power grabs by self-serving elites, i.e. the status quo. "
https://www.oftwominds.com/blogmar19...-fail3-19.html

Most of the tax burden is placed on the worker, as opposed to the corporation. The worker is slowly disappearing.
https://www.thenation.com/article/gi...working-class/
Since wages and aggregate earnings in the productive sector have been falling, the credit bubble that MUST grow,,,, is growing due to more pumping from the CBs. The private sector in America is maxxed out with about $15 trillion in personal debt. The State is taking up the slack in debt growth by adding to Federal debt.

"All in all, and despite a Q4 slowdown, 2018 posted the strongest Credit growth since before the crisis led, of course, by our spendthrift federal government.

Non-Financial Debt (NFD) rose $2.524 TN during 2018 (5.1%), exceeding 2007s $2.478 TN and second only to 2004s $2.915 TN growth. NFD closed 2018 at a record 253% of GDP, compared to 230% to end of 2007"
"Federal borrowings expanded $1.258 TN during the year, up from 2017s $599 billion"
BECAUSE
"Year-over-year growth in Total Household borrowings slowed ($488bn vs. $570bn), led by a drop in Home Mortgages ($285bn vs. $312bn). Total Corporate borrowings slowed to $532 billion from 2017s $769 billion."
"Federal debt grew 7.58%, almost double 2017s 3.74%"
"Treasury and Agency Securities surged $1.656 TN last year accounting for a full two-thirds of total Non-Financial Debt growth. Combined Treasury and Agency debt ended 2018 at a record $26,955 TN, or 129% of GDP (vs. 2007s $14.685 TN, or 92%). "
Credit Bubble Bulletin : Weekly Commentary: Q4 2018 Z.1 "Flow of Funds"
You get the idea. SOMEBODY has to keep the credit growth going.

TARP was created because the looming breakdown in the finance system would have been totally catastrophic to everyone except for the die-hard preppers. Not knowing what to do, the State rescued the finance system as a knee-jerk reaction.
" 129% of GDP (vs. 2007s $14.685 TN, or 92%)" This ISN'T what you call a permanent rescue. FED GOV has lots of channels to pump liquidity into the system. most of them are prohibited by law BUT, when you write the laws, you don't worry about small details.

Europe is a different story. The ECB doesn't have the flexibility of the FED,,, illegal as it might be. Just the same, the ECB is facing oblivion and has gotten desperate. You know that they are pumping liquidity into the banks. In turn, the banks are buying CB debt.
https://sputniknews.com/business/201...bonds-economy/
All the CBs are paying for state debt, even if they try to hide it.
__________________
 
Reply With Quote