The Deep State is the beginning of the end for the Global Debt Ponzi

I predicted years ago, and repeated that prediction many times since, that the end times for the Global Debt Ponzi/peak elitism/peak liberalism (call it what you will) would be marked by the fall of many powerful "made men".   The sleepy population, so the prediction went, would somehow wake up and begin to care. 


Our organized criminal cartel known as Big Government depends upon and requires the people to be distracted sleepy sheeple because the crap they have been pulling is so blatant that it requires a form of mass hypnosis lest the people rise up in unison and kill them in the streets.  I'm specifically referring to the twin tower tragedy conspiracy known as "911" but that was the visible tip of the iceberg.  The base of the iceberg runs deep, hidden from the view of most.  Out of sight, out of mind for the masses who, while living off of the great lifestyle afforded to the USA by ever expanding exponential debt, didn't care what others were doing as long as they got theirs.


While the debt level continues to rise, the debt driven prosperity has certainly peaked for the masses.  This is why they are suddenly waking up and it is exactly the reason why I said they would wake up.  The dopamine driven haze that kept the herd from action and in fact beat down anyone who suggested that action be taken is wearing off, and fast.  All of the fake hope that people had was bought at the expense of $21.1 trillion in US national debt, and counting.  And this is happening while interest rates are still very low.  Wait until the debt Ponzi goes into collapse which will be marked by rapidly rising interest rates.  Not to 4% or 6% but to 9,10, 12%.  That's when the debt clock begins to get scary because in addition to a massive 21 trillion handle for the base debt, the additional debt begins to go up at a scary rate.  Today the debt rises at the rate of about $1 million per 40 seconds.  Within a couple years it will be screaming up many times faster, perhaps 40 times faster to $1 million per second. 


The five basic stages of a debt Ponzi are:

1. The feel good stage.  This is where every social and financial problem is solved by throwing money at it from the national credit card.  High unemployment?  No problem!  Start a Keynesian dig a hole and then fill it program and pay for it with "the card".  Slow economy?  Again, swipe the card and it goes away.  Falling markets?  You guessed it: use the card to buy stuff, even stocks themselves.  You can tell we are in this stage by that $1 of debt buys more than $1 of GDP.  Over unity of debt spend relative to benefit gives stupid people the world over the idea that not only is debt based consumption a smart thing, but rather also that it is sustainable.
2. The big plateau.  This is where debt spend results in unity (1:1) improvements in the economy.
3. The point of diminishing returns.  This is where $1 in debt spend no longer generates unity GDP benefit.
4. Payday for the piper.  This is where the debt load becomes a net negative on the economy.  Note that this is no longer a reference to diminishing returns on new debt spend.  This is where the debt service actually subtracts from the GDP so that people have to be happy consuming less than they actually produce in real time simply because part of current production is needed to pay for the overconsumption of past years.  It is this stage where things get Argentina-like.  Those at the top of the food chain still muddle through because they have a buffer but those at the bottom of the food chain who are marginal to the economy are hit the first and by far the worst.  In response, government begins attacking profitable businesses in order to make up the shortfalls not because its fair but because they have the apparent ability to pay.  We are entering inning 6 of stage 4 right now as can be seen by the beginning of corrupt shit like Seattle head tax.  In Argentina all the big businesses were eventually vilified and then nationalized in the name of national security (AKA the elite trying to stay in power).
5. Collapse of the con.  This is the end game where the people rise up and make sweeping changes to the way that the elite of yesteryear were running things.  Maybe its the beginning of brighter days but maybe its the beginning of fascism, Hitler 2.0 so to speak.

The stages above are nonlinear.  It takes a while for confidence to build but only a fraction of the time for confidence to be lost.  So, 90% of the time is spent in the first 4.5 stages and 10% of the time in stage 4.5 and later. 


The recent flap about how federal law enforcement agencies aligned with deep state forces ganged up on the Trump campaign and on the Trump presidency are major signs of the end times for the Global Dept Ponzi because they have the power to convince the rank and file of the outright criminal behavior that is now rampant in big government.  In other words, the people finally lose confidence in the con men that have been running the show.  Once the confidence is gone, the con is gone and the people finally realize that the emperor is wearing no clothes, or per Buffett, skinny dipping when the tide goes out.

USS Arizona memorial closed for Memorial day.

I served in the US Air Force for 5 1/2 years.  That's 4 years initial signing and then a 1.5 year extension in order to transfer back from Guam to the US and re-establish US residency before returning to civilian life.  I joined back in 1978 right out of high school because the economy was in the dumps and my single mother was not rich.  So there was no paid for college party waiting for me.  It was time to go do something on my own and so I did it.


When I joined the military, Vietnam had ended just 2 years prior.  So I did not join to fight nor did I join out of some misplaced brainwashed sense of fake patriotism.  It was a volunteer force and I needed a job and I needed to learn some life skills.  The military back then was a pretty good option for these goals for a young person.  Despite the fact that the pay was jokishly low (base pay for an Airman Basic was $420 per month...), I considered it a fair enough deal because it included room and board I had no real work skills at the time.  Additionally, military basic training was a good wake up call for someone who grew up without the oversight of a father.  It made me understand the power of discipline or perhaps the weakness of not having it.


At that time, military was not very popular because Vietnam was not a popular war.  Nor should it have been.  This was not national defense.  It was empire building.  It was war profiteering.  A lot of good young men got turned into hamburger for it and many more had to deal with the mental scarring for life.  So when I got on a plane, nobody clapped for me in the waiting area of the airport and nobody came up to me asking to shake my hand while thanking me for my service.  Nor should they have because I was not a hero and neither was anyone else in the service.  It was a job that we agreed to do in exchange for compensation.  Period.  It was not a very good job but I was not a very skilled person and so it was a fair exchange. 


How things since then have changed.  As the elite profiteering increased on the back of debt fueled US military expansion within our government, our corporations and the world, the con men running this shit show used the usual emotional tactics in order to hide, obfuscate or justify their corruption.  Fools around the country were convinced by these false patriot profiteers to "honor our troops", etc. etc.   What they really meant was to deify the military in general and place it on a false worship pedestal in order to keep the ridiculous funding coming.  The chart below defines the word "ridiculous".  Why do we need to keep this massive spend going?  Who is paying for it and what are we really getting?  What are we not getting if money is being pissed away down the military rat hole?





The deification of the military was supposed to get sheeple to be afraid/intimidated to ask these basic questions.  After all, if you were jealous of military spending then you must not support our troops and therefore you must not be a patriot.  It's a great scam and as I have always said, the US has the best con artists in the world.


But none of this could have happened if the workers had been  required to pay for it in real time.  People would have said, no I do not have the money or no I do not want to pay this month's special assessment for outlandish military expenditures and global military adventurism.  And so instead of doing this, the fucking con men just created this fake credit card called treasury debt and they piled the military spending and any other kind of spending they could into it.  That way the con men got their cut of these outlandish cash outlays and the population did not have to do less with less in any way because the bill for all this spending was put on the national credit card; consumption today and defer the paying of it. Kicking the debt Ponzi can down the road.  Call it what you like.


Unfortunately, at some point the credit card has to be paid off OR defaulted on.  Neither is going to be any fun because we have now gotten very used to living off of this credit card and if this lending ever stops then the floor is going to drop out of the liquidity elevator which is the rising tide that floats all boats.  Without the ability to take on massive debt, the military spending will have to collapse because the people cannot suddenly begin making the associated payments.


This is really not an "if" question but a "when" question.  The only alternative is for the US to try to declare martial law on the entire world.  This is what I refer to as the Roman option.  Rome got big not by earning what it had but rather by conquering everyone else and stealing their money, their technology and their labor.  The go Roman option is, for the US, to simply declare the repayment of US foreign held debt to be contrary to the national interest and thus to the national security of the USA.  A heck of a lot of corruption and lies can be justified under the umbrella of national security.  All we have to do is demonize anyone who doesn't agree with our theft and then send in our overly capable military to convince those regimes that they need to continue sending tribute to Caesar.


As I was saying, from the 1970s until today the military has just gotten bigger and bigger and in doing so it provided less and less real security to the American people.  But at some point, maybe not today but at some point, interest rates will rise dramatically and the US will have to make a decision as to whether to default on our debts OR simply demand under threat of military action that we continue to be "loaned" money forever; gift loans as a tribute to Caesar.


I don't think the USA is big enough to take on the world and China is now beginning to build up its military might. The US cannot take on Russia + China and win.  So the "go Roman" option time window is closing fast.  Its more likely we will default on our debts and then begin seeing severe austerity measures like other failed nation states.


Perhaps it is a sign from above that this is already happening.  Its a bit ironic that the USS Arizona memorial has developed cracks to the point where, exactly on Memorial day, it had to be shut down for repairs "indefinitely".  I'm watching this one closely just like I watched the Duck Dynasty vs A+E.  If they actually repair this memorial and then re-open it then the military industrial complex might have more room to run. But if they finally decide to simply condemn the monument and close it forever then I think it is a perfect sign that peak liberal militarism is upon us.  This is not some kind of prophetic religious statement but rather something quite a bit more obvious.  These memorials are there to control people, to get them to shed emotional tears for all the loved ones who died defending our country (even if all modern day versions of such defense were really an offensive military expansion).  If the people were swarming the monument each day then you best believe that the powers that be would recognize that the control mechanism was still working and thus a good investment.  But if nobody much went there, especially from the new, younger working class, then to Hell with those who died because it was never about them in the first place.  It was always about using symbols to control the labor force.


I strongly suspect because of my wave count on peak liberalism that the USS Arizona memorial will never be re-opened.


Happy Memorial Day.