Humanity would not have been possible without the extinction of dinosaurs et al. some 66 million years ago due to a large meteor impacting earth. Though many greens regret this, the rest of us are damned pleased. The lesson is that some destructions clear the way for a more enlightened future. As described here http://www.familysecuritymatters.org/publications/detail/dont-look-down, we are facing financial collapse, with the dollar’s death certificate likely to state the cause as hyperinflation. I noted that it could occur tomorrow or in a decade. And while this piece didn’t express horror of such collapse, further thought has convinced me to embrace a reset (not like I have a choice in the matter – as I keep telling my wife, my analyzing and writing about it won’t be the cause).
How could it be a good thing, asks the dinosaur? Well, consider where we are, just naming what is in the news currently: our president is an Islamist; he has set up an invasion of the southern border to create chaos with the added bonus of seeding a Democrat voting block; and Ferguson, MO, where John Lewis (Atlanta representative) wants martial law in order to protect the protesters (rioters), a St. Louis alderman believes that a black youth robbing a store is like having two beers at a ball game and driving home and the homie State Police captain now in charge calls off law enforcement so the rioters could burn down a market (this as of 7/16/14). Not to mention our dear RINOs.
As I noted in my Don’t Look Down essay, the hyperinflation I am referring to is a mass loss of confidence in the dollar. The true national debt is ~ $200 trillion that includes underfunded and unfunded obligations. States and localities add to this as do private pensions. But it doesn’t matter how much more because we aren’t going to be able to pay back or pay out no matter what the number is.
And then there are the derivatives for which there is little public information, but are estimated to have a notional value worldwide of $750 trillion to $1.5 quadrillion. Goldman Sachs and Citi each have derivative exposure in the ballpark of $70 trillion with assets of some $1.8 trillion. An event that causes the market (investors) to demand higher interest for bonds, for example, could / would trigger a derivative disaster. Trying to get a handle on them is impossible, for anyone. Lehman went down in 2008 because of them and an army of experts are still trying to unwind them – but never will because there are intertwining swaps, bets, debt insurance etc. with a vast number of counter-parties. They are like the crab grass that enters my yard each August – utterly entangled. It must be pulled up by their roots.