We’ve Come To The End Of The Cake

Sarah Hoyt says that which cannot be said.

Leviathan is both unbound and broke.

Consequences to follow.

Are you ready?

4 responses to “We’ve Come To The End Of The Cake

  1. Internally, the US Federal Government has power as long as it maintains the ability to tax and issue currency to pay those taxes in. That’s the loop that gets folks out of bed in the morning (instead of hungry chickens and cows full of milk).

    Foreigners can declare that “dollars” are unacceptable as a trade item, and can demand “stuff”, be it lumber/furs/slaves or pm’s to trade for their precious coffee/spices/silk, or tell us to pound sand and drink chicory-water. I wouldn’t blame them for refusing paper that is a promise of more paper. They will inevitably refuse it, and all hell will break loose, outside and inside the USA (source of unlimited “dollars”).

    Inside the USA, Federal “dollars” are going to be useful as they are valued, meaning not so much as pre-1965, when you could get fifty 90% silver dimes for a five dollar bill at any bank. Eventually, a federal person with paper dollars will notice that you have something for sale and the “sale” will be at the implied or actual point of a gun, paid with occupation script money called “dollars” in the customary amount set by the central price and wage authorities.

    At what point will people with “serious” employment get paid in grams of gold (perhaps a digital “gold card” backed by physical metal out of country)? Not so far off, I suspect.

    Hold on tight.

  2. She’s right in what she says, of course, but she doesn’t go far enough.

    We’re so far past broke you can’t see it from here with a telescope. In addition to all the cutting she talks about, we need to run surpluses for the rest of this century. Assuming our creditors would let us get away with it and not just come in after it.

  3. What if the Fedral Reserve does not want to renew thier 100 year charter in 2013????

    • At this point, with all the debt they’ve bought, they could just about repossess the Federal government.

      You could almost say the government is a wholly-owned subsidiary of the Federal Reserve Bank.