SociÃ©tÃ© GÃ©nÃ©rale, one of Franceâ??s biggest banks, noted the possibility for collapse:
"As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse. The underlying debt burden is greater than it was after the Second World War, when nominal levels looked similar. Aging populations will make it harder to erode debt through growth. High public debt looks entirely unsustainable in the long run. We have almost reached a point of no return for government debt. â??
I thought Obama and his crew were crowing about the economy finally perking up, with only (only!) 36,000 jobs lost last month.
“High public debt looks entirely unsustainable in the long run. We have almost reached a point of no return for government debt,” it said.
Inflating debt away might be seen by some governments as a lesser of evils.
If so, gold would go “up, and up, and up” as the only safe haven from fiat paper money. Private debt is also crippling. Even if the US savings rate stabilises at 7pc, and all of it is used to pay down debt, it will still take nine years for households to reduce debt/income ratios to the safe levels of the 1980s."
I guess this spells the end of Social Security, Medicare, Medicaid, Obama’s insane healthcare ideas, aid to the states, handouts to crony capitalists, and more than 50% of the american people living pretty much free of taxes.
Thank you, Alan Greenspan (John Galt/Francisco D’anconia). We deserve it.