Coburn: fiscal time bomb explodes in 2 to 5 years; 15 ~ 18% inflation

[emazur]

http://reason.com/archives/2012/10/1...t-the-military

reason: Let’s get right to it: When is the fiscal time bomb going to go off?

Tom Coburn: It’s anywhere from two to five years from now, depending on what happens in Europe and what happens in the world economy. But there will be a point in time where people lose confidence in our ability to repay our debts...

When you’ve printed $3.6 trillion worth of money—right now it’s printed but it’s not in the economy, it’s sitting on bank assets listings and the Federal Reserve asset listings—what happens is when that money starts moving, when the velocity of that money starts moving, you’re going to see 15, 18 percent inflation.

[acptulsa]

Not a trendsetter in informing us of this, but at least he's mentioning it.

Speaking of Coburn, he's not running for reelection in 2014. We may have to fasttrack one of our new Congressmen we're about to elect into that slot--provided one of them lives up to his rhetoric while in office.

[Zippyjuan]

provided one of them lives up to his rhetoric while in office.

There's polititians like that? Aside from the Paul's that is?

[RonPaul25]

I'm hoping Randy Brogdon runs for this seat, he ran against Fallin for governor two years ago and got nearly 40% of the vote in the primary, should be the favorite unless one of the sitting congressmen run

[Seraphim]

Europe is, figuratively speaking, seeing it's financial markets slide off into the ocean...bit by bit.

There is a large chunk soon to fall off of Europe. It does not necessarily mean a Nation State will withdraw itself from the currency union (although I view that as largescale inevitable). But merely a significant % of real, strong capital - pulled out.

Anyone who understands the concept of a Black Swan event knows that it will "suprise" most people.
France.

The market has largely priced in PIIGS trouble (not to it's full extent, but roughly 70%); but in a radical oversight of a major players (insolvent/broken) balance sheet, FRANCE, is the Black Swan.

Hollande and his policies are/will be the last straw - but fault runs deep and is longstanding. The UBER leveraged French banking system and the solvency of French National books - is quite frankly, an embarassment. France cannot touch Germany in terms of it's capacity to service outstanding debt/cash obligations.

Germany would be best served, serving the Deutchmark. Better yet, pegged to a precious metal.

Both have been systemically backstopping A LOT of PIIGS debt and pillaging it's own Tax Base. France is simply not able to bare the burden as well as Germany.

Europeans (particularly the southern/periphery types) continue to, en masse, draw cash out of the banking system.
This is the DEFLATIONARY force in the system right now. Cash is what the system leverages itself against. Currency (USD,EUR,YEN,CAD - in this case EUR) is being drawn down to pay for day to day expenses and contingency. THis acts as a force that dries up the fractional reserve money multiplier.

As we speak, most jobs around the world are DEPENDENT on this State/bank/communist/fascist corporate oligarchy.

THe PROMISES of the STATE are DEPENDENT on the tax revenue provided by this debt based inflation machine.

So if the banks see cash (I.e, Current value), withdrawn - the State suffers immensely (thus, the people that depend on the State). Their way is that of robbery and so much worse.

Since Europeans have given themselves to dependance of the State; when the State regime begins to fail, the services said crowd depend on, collapse.
So they riot and defame the State (which, ironically enough is themselves). Revealling.

I respect their fighting attitude - they fight the State. Their problem is that once the State is defeated, they surrunder themselves right back to it. In the end they simply end up waiting their whole lives to feel, oncemore, the abuses of the State. And the cycle returns to riot and violence. Over and over again.

The US/Canada were very much different than the rest. Immigrants have fled here for generations because of the general lack of a State. Revealling.

General peace held together by a LACK of something. (The State). Revealling.

But, like the civilizations of past - the general trend has been that the voting populace perpetually surrenders itself to the State.

This must end. It will end. All attempts to stop this are futile (and remarkably juvenile).

You must depend on you. And I must depend on me. The future of any beacon (of light) is firmly planted in the roots of Soverign Man and Soverign Woman.

What is my point, you say?


Money and money systems are merely liquid forms of current VALUE.

What happens when VALUATIONS are skewed and revert to a natural mean?

THE MAJORITY OF LIQUID MARKET VALUE, AS WE LIVE AND BREATH, IS THAT OF THE SOVERIGN NATIONAL DEBT BOND.

The human LIVESTOCK are the collateral for nearly ALL MONETARY TRANSACTIONS; see, LEGAL TENDER LAWS and which currencies are that of LEGAL TENDER.

What happens when the collateral on debt is liquidated (one way or another)? Enlightenment OR culling the herd.

Valuations change in rapid fasion. When the valuation is based on human livestock (a comparatively superior being, intellectually) they tend, also, to figure out when they are being ENSLAVED. It can take a while, but when it does - it spreads like wildfire.

And the "Elites" (self professed) realize - SHIT THE LIVESTOCK ARE BECOMING AWARE.

This process, for example, is well underway in EUROPE. It is well underway in CHINA. It is forming in the USA. We are seeing it play out on a daily basis.

Did I mention that the income streams of the innocent (guilty?) is depedent on it's violent oppressor?

Valuations, across the board, are nearing a point. This point is often referred to as; The Breaking Point.

The undeniable fork in the road is fast approaching. For some the collision will be nothing but a blackout (crash into the wall - DEAD before there is anything to feel, let alone experience).

Prepare, as one of the following major paths will be the path taken;

1) a partial gold standard for International Trade. This involves a systemic shut down followed by a massive devaluation of debt (currency flood). Next, leverage (debt) is pegged to Precious Metals. How does this work (how do capital flows remain open/debt repayment?). Wages; more specifically - wages paid in metal. If wages are paid in metal, fully redeemable, it allows for partially backed credit to be efficient and value seeking. Stable. Voluntary. Efficient. MORAL.

General Peace. General Prosperity.

2) The SDR (special drawing rights) is the platform for International Trade. Basically; the IMF (it's member States) create a new large scale leveraged fiat currency to trade with. The ponzi scheme remains intact, leveraged BEYOND its current leverage.

Small scale, tactical, but oppressive war rages on. The debt slaves become MORE indebted as the Welfare/Warfare State continues it's battle with Entropy. Somehow, someway, The Brave New World continues forward in it's Zombie Trance.

This is actually the Black Swan of these 3 options (to me). The LEAST likely.

3) Hyperinflation and thereafter widespread global war.
????????????


In short;

1) resolution (for now)
2) business as usual + time induced evolution. Japanese Lost Generation Style.
3) The Inferno

I feel that one of these 3 will play out. I feel that 1) is winning by a razor thin margin over 3). 2) would surprise me.

Attention AMERICANS:
KEEP YOURSELVES OUT OF WORLD WAR 3. IT IS THE WORLDS ONLY HOPE. YOU HOLD THE KEY TO OPTION #1.

[american.swan]

What is he going to do about it?

[acptulsa]

What is he going to do about it?

Retire.

[Seraphim]

^^^

PS: I scoff at the notion that this time bomb is FISCAL by nature. It is much, much deeper than that. Fiscal realities/maladies are a SYMPTOM.

[Zippyjuan]

2) The SDR (special drawing rights) is the platform for International Trade. Basically; the IMF (it's member States) create a new large scale leveraged fiat currency to trade with.
The ponzi scheme remains intact, leveraged BEYOND its current leverage.

Right now, the total value of all SDRs is about $310 billion dollars. If they want to replace any currency with that, they will have to massively increase that figure. http://www.imf.org/external/np/exr/facts/sdr.htm And it is comprised mostly of Dollars and Euros so you would be replacing Euros and Dollars with... Euros and Dollars? (it also includes Yen and Pound Sterling). The Euro is about one third and the dollar about 45% of an SDR. http://www.imf.org/external/np/fin/data/rms_sdrv.aspx It is not used for trade today.

[NoOneButPaul]

Retire.

He wrote a book stating what he thinks needs to be done.

I'm probably not going to read it but at least a mainstream republican is starting to echo our sentiments...