Aaron Brabham: ... So, the U.S. debt jumped a record 328 billion dollars the day the Federal government opened back up again. Because they decided that, until February 7th, they gave themselves unlimited borrowing ability. They put no cap on how much money they can borrow. Good idea? Porter Stansberry: Listen folks, its just—its not going to stop. We are so far past the point where we can stop printing money, we can stop borrowing money. This thing is gonna keep on trucking, like an 18-wheeler on the loose, until it totally crashes. And I was actually thinking about this more last night. This whole idea is so funny now. People are saying, Oh, the Fed can’t taper because employment is weakening or something, right? It was just four years ago where the Feds said, This is an extraordinary policy. Were only doing it because were in an unprecedented financial crisis. Right? But this is the way it always goes with money printing. As soon as you open that Pandoras box, theres always a reason to keep printing. There is never a reason to stop. Because everybody wants more stimulus, everybody wants more money, everybody wants nominal prices to go up. Everyone thinks its good. Meanwhile, whats happening, of course? Everyones wages are being gutted by inflation, the middle class is getting wiped out. So if you look at the numbers, and right now on an individual citizen of the United States, thats every person, per person, every last baby in the United States, right? And you look at all of the promised entitlements that we have currently made... Its an astronomically large number. Now, I wanna be clear about this. This is not debt were currently servicing. This is all the debt plus all the entitlements. Okay? So its not a real number. But even if you look at the real number it comes to like $50,000 per person. Which... thats just the Federal debt, by the way. Not all the debts of the country. Theres no way these debts can be financed or repaid. So we cant stop printing, we cant stop deficit spending. And so then you just have to wonder, Hows it going to end? Well sooner or later, the inflations gonna take off. And when I say take off, I mean really take off. Like price of bread going up ten percent a month. But theres not gonna be any way to stop it. So whats gonna happen? ... Well, you know, weve seen this all around the world. I can tell you what will happen is that the government is going to promulgate a bunch of rules to try to control the inflation with wage controls, price controls, etc. And all thats going to do is slow the economy more and more, and reduce the supplies of things. Its going to be a disaster... And for some period of time, people will say that weve hit peak prosperity. But this has nothing to do with the human ability to evolve and to continue to be more productive. Theres nothing really out there that’s peak anything. What this is, is the most incredibly stupid financial policies that anyone in the United States has ever seen. This is complete madness.
Posted on: Mon, 04 Nov 2013 21:28:56 +0000
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