In 2007 I began writing The Market Ticker due to the outrageous conduct of various branches in the Administration and portions of the Capital Markets. Endemic fraud in the financial system that had generated unbridled and outrageous credit creation threatened the collapse of our entire economic system.
The consequence of this should have been thousands of indictments, prosecutions and imprisonments -- of banking executives, of members of Congress, of various executive branch officers in various agencies and more. The banking system should have been forced to match assets to liabilities and either put up the margin to back their bets or liquidate them -- and if that forced them out of business and collapsed asset prices by 90%, so be it.
Instead our government took the easy way out. It doubled down on the fraudulent models of the past.
But the models of the past were unsustainable and no amount of gaming arithmetic changes the outcome. Indeed, the laws of mathematics state that the longer you allow an exponential system to run away from you, the worse the correction to reality you must sustain is.
From 2007 to 2013 the government has grown from $2.7 trillion to $3.68 trillion, a 36% increase. Marketable federal debt has gone from $4.96 trillion to $12 trillion, up 120% (that is, more than a clean double.)
At the same time median family income has dropped from $56,000 to $52,000 in 2013 dollars (that is, adjusted for "inflation"), a roughly 7% decrease.
Oh, and that's before taxes.
Everyone talks about there being a "tsunami" of incoming inflation to be expected. The real tsunami is government spending and debt and it already happened. In real-dollar terms the federal government alone is taking from you nearly twice as much today as it was in 2007 and 80% of the minimum-wage-earner's buying power has been destroyed from 1980 to today.
And this is before Obamacare really kicks in.
Then there are the outrageous actions of our government in Benghazi. What we are covering up there has not yet been determined with accuracy, but we don't need the fine details to understand the essence of the act. That our tax money was funding terrorists and other bad guys in some form or fashion, and that we were probably providing them weapons is unfortunately pretty-much beyond dispute.
Never mind the outrageous and unconstitutional acts of the NSA in spying on people.
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