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Re: dennis gartman: "gold's become the 3rd currency"
Blazespinnaker - your comment "sorry, that model doesn't scale up to 300mm people" may actually get at what is the heart of our issue, IMO.
The fact is that for some period of the last 10-20 years we chose to engage in a ponzi finance economy, & the fact that most/all 300mm people bought into that the ponzi finance economy as reality to some degree & levered up & had bigger families than they otherwise would have means that now that the ponzi finance economy has been revealed as a fraud and has collapsed, OUR ECONOMY IS TOO SMALL TO SUPPORT ALL 300MM PEOPLE...
That means this economy is no longer about economics - it's about politics, & it will be for a long time. It's about 1 in 8 Americans on food stamps; it's about nationalizing healthcare; it's about nationalizing the automakers; it's about 86% of new US mortgages being backed by the gov't (up fr 30% 4 yrs ago)...
This to me seems to be the "dirty little secret" no one wants to talk about in public - that the collapse of the ponzi finance economy means the economy can't support all of its citizens like it used to. And so the gov't has to step in, economics be damned, because the politicians are acutely aware that there are 90 guns for every 100 people in this country (nearly 3x the per capita rate as Iraq!!), & those guns are disproportionately in the hands of those who would most often find themselves without a seat now that the ponzi finance economy music has stopped. Further, the soldiers & national guardsmen who defend this country are primarily the sons & husbands of those who would be left without at seat post-ponzi finance economy collapse.
If you don't think they aren't aware of & afraid of that, then I would love to get your thoughts behind why you think Hank Paulson threatened Congress with the necessary imposition of martial law last fall if the TARP wasn't passed...
Blazespinnaker - your comment "sorry, that model doesn't scale up to 300mm people" may actually get at what is the heart of our issue, IMO.
The fact is that for some period of the last 10-20 years we chose to engage in a ponzi finance economy, & the fact that most/all 300mm people bought into that the ponzi finance economy as reality to some degree & levered up & had bigger families than they otherwise would have means that now that the ponzi finance economy has been revealed as a fraud and has collapsed, OUR ECONOMY IS TOO SMALL TO SUPPORT ALL 300MM PEOPLE...
That means this economy is no longer about economics - it's about politics, & it will be for a long time. It's about 1 in 8 Americans on food stamps; it's about nationalizing healthcare; it's about nationalizing the automakers; it's about 86% of new US mortgages being backed by the gov't (up fr 30% 4 yrs ago)...
This to me seems to be the "dirty little secret" no one wants to talk about in public - that the collapse of the ponzi finance economy means the economy can't support all of its citizens like it used to. And so the gov't has to step in, economics be damned, because the politicians are acutely aware that there are 90 guns for every 100 people in this country (nearly 3x the per capita rate as Iraq!!), & those guns are disproportionately in the hands of those who would most often find themselves without a seat now that the ponzi finance economy music has stopped. Further, the soldiers & national guardsmen who defend this country are primarily the sons & husbands of those who would be left without at seat post-ponzi finance economy collapse.
If you don't think they aren't aware of & afraid of that, then I would love to get your thoughts behind why you think Hank Paulson threatened Congress with the necessary imposition of martial law last fall if the TARP wasn't passed...
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