Thursday, March 10, 2011

Governments Are About To Lose Control « The Burning Platform

The real problem is Federal deficit spending, inflation or not, deflation or not. Whether the Fed is willing to admit it or not, inflation is the only way to sustain exponentially expanding levels of federal spending. $223B of deficit spending in February? Who's kidding who?

When QE ends, by some reports as early as June, all hell is going to break loose with a fury and a vengenance. Regardless of who or what is running the country, multinational corps are still going to be around and wielding a lot of influence. Government produces nothing, and will need private enterprise to provide infrastructure, unless the end game is a statist society. More likely it's the insatiable greed of the oligarchy that's driving spending levels higher and higher.

There's no question we're in for the mother of all corrections as government spending winds down. The oligarchy versus the free shit army, with what's left of productive society caught in the middle. Stay tuned for replays of Wisconsin, Atlanta and New Jersey as declining levels of social spending translates into not so civil unrest. The next few months are going to be interesting as states grapple with budget deficits. Unemployment will increase as federal spending contracts, placing even more stress on state's budgets. The only hope for state and local governments is to wind down all but essential services. Even then it may be too late as the beast that has become our federal government continues to consume and devour everything in it's path.

Governments Are About To Lose Control « The Burning Platform

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