26 May 2015 AD
Here in Rockwall there will be bond elections for new schools, new roads, new everything.
The world authorities have run out of ammunition as rates remain stuck at zero. They have no margin for error as economy falters.
Ageing populations mean countries’ debt piles risk growing out of control, warns European head of Goldman Sachs Asset Management
Economist Martin Armstrong warns that a Supreme Court ruling last week has set the stage for the federal government to begin seizing private pension funds.
Quantitative easing may have been better than nothing, but it certainly did not create a booming economy. However, it does set the stage for a possible boom-bust cycle in the coming years.
Despite the Dow hitting pre-crash highs, companies reporting positive earnings, and the financial media saying we are looking at the “beginning of a new bull market,” the stock market is on the verge of another historic collapse.
Can anyone with certainty predict the day, the hour of economic collapse? Only God knows these details. Even if you don’t believe in God, believe the signs of coming problems. I write not to drive you into cringing and fear, but to warn you of the “potholes” in the economic roadway ahead of us.
Government debt at all levels, from federal to school districts and municipalities, is unsustainable.
My parents lived through the Great Depression and came out of it well. I’ve lived through several major economic recessions and come out of it well. If you are unencumbered by long-term debt, you, too, will come out of this next event well.
Founding Father’s Warning Against Perpetual Debt
“[The natural right to be free of the debts of a previous generation is] a salutary curb on the spirit of war and indebtment, which, since the modern theory of the perpetuation of debt, has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating.” – Thomas Jefferson, letter to John Wayles Eppes, Monticello, June 24, 1813; “The Writings of Thomas Jefferson,” Albert Ellery Bergh, editor (Washington D.C.: The Thomas Jefferson Memorial Association, 1904), Vol. XIII, p. 272
“The term of redemption must be moderate, and at any rate within the limits of [the government’s] rightful powers. But what limits, it will be asked, does this prescribe to their powers? What is to hinder them from creating a perpetual debt? The laws of nature, I answer. The earth belongs to the living, not to the dead. The will and the power of man expire with his life, by nature’s law.” – Thomas Jefferson to John Wayles Eppes, Monticello, June 24, 1813; “The Writings of Thomas Jefferson,” Definitive Edition, Albert Ellery Berg, Editor, The Thomas Jefferson Memorial Association (1905) Vol. XIII, p. 269
What is ‘perpetual debt’? It is that debt generations yet unborn must labor to pay, due to the foolishness of their fathers and grandfathers.