kunstler friday with some well written verse describing our current dilemmas, though i believe there are several not covered;

“They have tried to solve a wide range of insoluble problems, from the weather to poverty to viruses, and now they will attempt to solve us.” —Eugyppius

This is that part of the movie where the hero — you — tumbles off the cliff on Kong Island in a lightning storm with a canyon full of tarantulas down below where you’ll soon be landing. I know, not a pretty picture. The cliff is our country’s financial quandary; the lightning is us getting sucked directly into war; and the tarantula pit below is the emerging peril of Covid vaccine injury and death coming on hard, like your landing.

     Gold and silver are vaulting up suddenly like nobody’s business (literally). This may be fun to see if you are sitting on a pile, even a small pile of the stuff. But to everybody else it’s a signal that something is messed up in the complex engine of the economy. You know, of course, that our money is debt. So, debt is the fuel that drives that engine. Debt is a promise to pay back money with interest to take advantage of the time-value of money. The time-value of money means it’s better to have the money now (to keep the engine running) than to wait until your work produces money (if it even can).

     The trouble is, debt loses its credibility if there is no plausible way of paying it back, or even just to keep paying the interest. That’s exactly what is happening now. Everybody can see that the US government can’t pay the interest on its debt, which is Treasury bonds, notes, and bills (from long duration to short). That debt is running at well over $1-trillion a year. That’s a thousand billion, which is a thousand million. See, it’s impossible to grok how more than a trillion dollars gets produced in an economy based on selling fried chicken nuggets and streamed movies to people with no jobs.

       When the Treasury holds an auction on a new issue of bonds (needed to pay off the interest on old bonds) and nobody shows up to buy because they doubt its ability to pay interest on the new paper, our country’s debt becomes worthless. As a last resort, the Federal Reserve swoops in and buys that worthless paper by creating “money” on its computer. That “money” goes out into the economy. The Fed pretends to get paid interest. It’s all fakery, a swindle. It’s like putting water in the gas tank of your engine. You know that the engine is going to throw a rod. When it does, it’ll be such a shock that the vehicle it’s running in is liable to hit a bridge abutment or something else hard. That’s what tumbling off the cliff is like...........more......