“…we’re on an unsustainable fiscal path at the federal government level. That has been the case for some time. And it’s something we will have to deal with. And better to deal with it sooner rather than later.” — Fed Chairman Powell
Here’s one of the most powerful non-elected public figures in the world warning us that our elected officials are spending the next generations’ money at such a high rate that something bad will eventually happen if they don’t stop borrowing from future generations and start living within their own means, i.e. tax revenue.
US debt is unsustainable.
The answer for liberal minds is to raise the tax rates higher and higher. Old-school communists want it raised to 100%. But problems arising in complex systems are almost never solved with simple binary thinking. There’s good (if suppressed) evidence that a U-shaped dose-response curve exists for taxes in the US: when you raise tax rates from zero to some intermediate level, more and more money comes into the federal government, obviously. But when this intermediate tax rate is exceeded, the amount of tax money decreases. This is thought to be due to economic weakness brought about by diminished public spending and diminished income for businesses which causes job cuts, causing the public to further reduce its purchasing of goods and services as unemployment increases. This creates a negative feedback loop that can result in a recession or depression.
Conservatives tend to think that all taxes are theft and would be abolished in a perfect world (whatever that is). They tend to have a tough-minded attitude and think that poor people shouldn’t be financially coddled by the government because this creates “learned helplessness” and an inability to legally work without losing the money that the government is already giving them. The problem with this mindset is that , once again, problems arising within complex systems are almost never solved with simple binary thinking. Without appropriate central government oversight, corporations soon own and run the world, and we’re left with the corrupt “democracy” and manipulated financial markets we have today.
The superhuman ability to see both sides of political issues is essential to problem solving within the complex systems of government finance.
And since there are no superhumans among us (as far as we’re allowed to know), the only hope we have of solving our political and financial problems is democracy where both sides are allowed to speak out and eventually vote some sort of legal compromise between each extreme of our binary, flawed, short-sighted solutions.
In a superhumanly objective world, there could not be two political parties because everyone would agree on logical solutions. In a totalitarian world like the one being quietly imposed upon us now by the WEF in the US and Canada, one flawed viewpoint alone is allowed, the other flawed viewpoint becomes illegal… until enough people starve to death and hopefully those remaining become brave enough to demand democracy again.
But democracy must be true democracy, not the corrupt version we have now where big corporate money can elect and control the votes of politicians through campaign donations, promises of cushy jobs and lucrative speaking engagements when they leave office, and corporate threats of revealing each politician’s most illegal business dealings and ugliest personal secretes.
I agree with Powell that the current US fiscal spending spree is unsustainable. It’s only a matter of time until financial gravity brings the US mega-debt house of cards tumbling down, possibly catalyzed by the current global efforts to detach the US dollar from reserve currency status.
Some might honestly disagree, believing that a nation with the ability to create as much of the world’s reserve currency out of thin air as it pleases doesn’t need to obey the rules of gravity and logic that apply to the rest of the world. These people seem to think that although all other current and historical governments, all businesses, and all households must never borrow orders of magnitude more money than they can hope to pay back, the US government is under no such constraint. These folks are often academics who tend to be dethatched from what they call “the real world.” A significant number of them are also said to be openly communists who would like to see democracy and free markets replaced by an “enlightened” top-down communist system, hopefully “done the right way” for the first time in recorded history.
Unfortunately, these academics, although good people with altruistic motivations, hold such a strong grip on the political opinions of young educated people in the US that there may be no future for true democracy here. Some claim there is a connection between the woke movement and communism. If this is true, the traditional freedoms associated with the historical US will be voted out of existence because reason is useless against the woke mindset. It rejects logic, reason, and even the existence of an objective reality.
I get it. My own limited understanding of things leads me to strongly suspect that our universe is analogous to a holo-physical simulation. But as best I can tell, it’s a simulation that allows free will decisions and actions to result in positive as well as painfully negative outcomes, including starvation and death.
And if I’m right, the great thing about true democracy is that it encourages decisions and actions (laws) based upon compromises between the eternally opposing extremes of valid, but always fatally flawed opinions on both sides of any divide.
Even though I agree with Mr. Powell when he speaks the truth about US debt as he did today (quoted above), anyone can see the cracks in this gentleman’s well-rehearsed humble demeanor when he, an unelected official, tells congress exactly what they WILL DO, as if he were God speaking:
“I will just say this, this really can only end one way and that’s with congress raising the debt ceiling in a timely fashion so that the US can pay all of its bills when and as due. That’s what has to happen. And if that doesn’t happen, no one should think that the FED has the ability to shield the financial markets or the economy from the consequences of moving too slow. … As I said, this ends in only one way and that is congress voting to raise the debt ceiling so that the US can pay all of our bills.” — FED Chairman Powell
You might want to hear his tone for yourself as he speaks two contradicting messages, the one up top (against US Debt), the other just above that demands congress raise more debt NOW.
Is it just me, or does it sound to you like this man is quite accustomed to telling congress how to vote? (The arrogant more-debt-now quote starts at 54:28 on this video:)
As much as I appreciate the way Mr. Powell speaks in understandable human English unlike most of his predecessors, I think that a fiat currency that can be legally manipulated by an unelected official who believes that a constant 2% inflation rate is not theft from the poor and middle class but instead is somehow desirable… I think this selfish and cruel opinion, combined with the entire institution of the FED should be abandoned soon and relegated to a growing list of history’s failed human experiments.
I suspect that the FED will be dissolved when the World Economic Forum’s “reset” takes place, but the problem there is that the WEF hates true democracy with a violent passion and cannot tolerate any fatally flawed political opinions but its own.
The WEF plans to create global dominance for its elite “stakeholders,” and anyone who dares to oppose them will be jailed with assets seized, as we’ve been shown by the WEF graduates up north.
The selfish, narcissistic WEF mindset is so yesterday, so much the reincarnated spawn of the dead amoral “scientific” materialist cults of history that nobody should take them seriously, let alone vote them into power over the “free” world.
We all need to grow up and try to be more realistic, more inclusive, and entirely more loving than the WEF and its power-drunk grads.
Think about it: There’s no way that liberal minds could or should stop feeling deep empathy for the poor and acting upon these loving feelings. And there’s no way that conservatives could or should stop being tough-minded people who see “tough love” as a necessary part of living realistically in this world.
Both views are part of a spectrum, they’re not a binary phenomenon. But both extremes need a voice in government.
True democracy alone allows them both to speak and vote. Every other form of government that I’m aware of is totalitarian and takes one extreme, liberal or conservative (relative to the times), and rams it down everyone’s throats creating imbalance, suffering and death.
I agree with those who want to end the FED and never replace it. I agree with those who want to replace fiat currencies with something like Bitcoin or gold (but not a central bank digital currency, of course). Money should be impossible for a bank or a government to create out of thin air. When they do this, it’s theft via devaluation of the currency.
But if the young people of today vote for a “woke” totalitarian government run by wealthy WEF stakeholders, I just hope the “reset” is bloodless and happens in voting booths.
Because at this point in human history with the geomagnetic protection of Earth growing weaker and weaker as a prelude to the next pole flip, I think it’s more important than anything else for us all to stop killing each other. Stop all war cold-turkey.
If we finally become unwilling to kill each other and follow amoral leaders into war, who knows what could happen?
Maybe whomever operates those UFOs (that the Navy admits are real) will help us survive the next pole shift. I bet they might.
And after that we might want to create a screening process that keeps sociopaths out of government and offers them some sort of option for ethical or moral or perhaps even spiritual rehabilitation.
Morrill Talmage Moorehead, MD