Wednesday, June 15, 2011

What are the social implications of economic collapse?

by Simon Black 

For the last few days, we’ve been having an important discussion about the magnitude of the economic challenges in the west; if you didn’t read yesterday’s letter, I really encourage you to do so before proceeding because it’s important to understand why the west has truly passed the point of no return.
Simply put, the United States and much of Europe are borrowing an extraordinary amount of money now just to pay interest on the money they’ve already borrowed. They cannot even self-fund their mandatory entitlement programs without going into the hole, and their options are limited:

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  1. basically what they are saying is that countries borrowed money that was not collected in taxes to pay for and not limited to:
    Police salaries, teacher salaries, government worker salaries, military salaries and the list goes on and on and on and on.
    If we do not borrow more money from the central banks a lot of people will not get pay checks. Then you have to ask your self how will we manage?
    Will there be a population reduction via world war?
    Will people be left to starve and default on their personal loans?
    Or will the central banks continue to print money to pay all these payrolls?
    Ask your selves what are the alternatives?
    We would Love to hear some suggestions:
    Oh and please do not keep saying cut spending.

  2. How bad could everything really be?

    Obama is making jokes about the unemployed. Things can't be THAT bad.


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