Three Financial Howls for Your Weekend
Take the time to read each of these articles over coffee (or something stronger):
Denninger: Bernanke Inserts Gun Into Mouth
Denninger: Actions Have Consequences
WaPo: US Budget Deficit Projected To Swell Beyond Earlier Estimates
Key grafs from the WaPo article:
...In the first independent analysis of Obama's budget proposal, the nonpartisan Congressional Budget Office concluded that Obama's policies would cause government spending to swell above historic levels even after costly programs to ease the recession and stabilize the nation's financial system have ended.
Tax collections, meanwhile, would lag well behind spending, producing huge annual budget deficits that would force the nation to borrow nearly $9.3 trillion over the next decade -- $2.3 trillion more than the president predicted when he unveiled his budget request just one month ago.
Although Obama would come close to meeting his goal of cutting in half the deficit he inherited by the end of his first term, the CBO predicts that deficits under his policies would exceed 4 percent of the overall economy over the next 10 years, a level White House budget director Peter R. Orszag yesterday acknowledged would "not be sustainable."
The result, according to the CBO, would be an ever-expanding national debt that would exceed 82 percent of the overall economy by 2019 -- double last year's level --and threaten the nation's financial stability.
"This clearly creates a scenario where the country's going to go bankrupt. It's almost that simple," said Sen. Judd Gregg (N.H.), the senior Republican on the Senate Budget Committee, who briefly considered joining the Obama administration as commerce secretary. "One would hope these numbers would wake somebody up," Gregg said...
Read 'em all, then pass to friends.
Don't let this past week's good news on the brass and AWB2 fronts take your eye off the ball.
We are facing the increasingly-likely prospect of the FedGov going Tango-Uniform, along with all of its regular transfer payments to various segments of our society.
What the former recipients of those payments will do in reaction to "no money this month" does not require much imagination.
Only well-stocked, well-trained, strong-minded groups of moral actors with the means and the will to resist bad behavior by mobs of any origin will make it through to the Restoration phase.
Remember the motto of Team Reorg:
Survive the first die-off.