Mauldin:The bubble in government promises.

This week's article from John Mauldin finally gets closer to the root of the matter as he comes to the same conclusions that I reported about in these pages years ago: there is a bubble in government promises.  Of course, it's bigger than that.  There is a bubble in liberalism which is now peaked and heading into decline.  But not before the peak fooled many into accepting government control over our lives, accepting government promises to look after us in our old age, accepting a government monopoly on our personal security (in case of danger, don't actively protect yourself, instead run and hide and let the police do "their job").


While Mauldin has now admitted that his "muddle through" thinking was a miscalculation, he still fails to grasp the bigger picture which is that our herding species cycles / pendulums back and forth between liberalism and conservatism on a regular basis.  He knows that pensions will go bust and that government will not be able to keep its promises but he does not seem to understand that the main enabler of wild swings in this boom bust behavior is the use of fake money and other fake promises to pay instead of using gold and silver physical coins.


To some of you this might still sound ridiculous but the peak of herd liberalism will go hand in hand with the peak in acceptance of fake money and fake promises for future payment (AKA Wimpy Promises).  People will eventually see this liberal lie-fest for what it is and they will increasingly begin to not accept fake paper in exchange for their goods and services.  Confidence in all global fake paper money will collapse and the result will be a period of carnage never before seen on this planet.


None of this had to happen but all of it will certainly happen at some point in time simply because the use of fake money is a Ponzi scheme and no Ponzi ever lasted for ever or can possibly last forever.  At some point a big band of thought leaders will break away.  Some people think they are doing just this by accepting fake bitcoins as money but this will be proven to be a Ponzi and so people will finally realize that all unbacked currency is a Ponzi. 


Advantage physical gold, silver, lead and gunpowder.


Keep in mind people, that Ponzis do not collapse slowly. They collapse with exponential speed.  I hope all my long time readers have realized the correctness of my world view by now and have taken real steps in order to protect themselves from what must eventually transpire.