Gordon T. Long has an interesting piece entitled The Economic Death Spiral Has Been Triggered. He concludes:
The Basel BIS Bankers fully understand the underpinnings of the shift from a Virtuous Cycle to a Vicious Spiral presently underway.
They are doing everything within their power to offset it. Policies of “extend and pretend” and “kick the can down the road” are all just attempts at buying time.
Unfortunately time is working against them, as existing debt only increases as interest owed is relentlessly and cumulatively added.
The Basel BIS Bankers have no real answers. The eventuality of a fiat currency crisis is ordained and has been since the early warnings in 2007 of the Financial Crisis. The roadmap has been clear to all that actually wanted to look.
In 2009 I wrote a piece entitled Spiraling to Bankruptcy which focused on the impossibility of servicing debt levels. The problem then was impossible to solve without massive defaults. The passage of time has only made it worse.
In an effort to prolong the charade and pretend that there is a recovery, government only digs a deeper hole from which the people will have to climb out of once the economic apocalypse occurs. To borrow a phrase from Friedrich Hayek, the government has a “tiger by the tale.” They must keep up QE and deficit spending in order to avoid a depression. If they do, eventually massive inflation will break out, markets will cease to function and a depression will occur via that route.
Nothing avoids this end. Making matters worse, however, temporarily hides the realization of our condition from the masses. No need to guess as to which alternative politicians will choose.
Will there be a day of reckoning for the politicians who led the country down this path to destruction? I tend to doubt it. The politicians and most of the MSM will try to convince the masses that it was the private sector’s fault. Unfortunately, most people will believe them and might be willing to follow a dictator who promises to fix things. Then we end up like Cuba or Venezuela, except there is no place to escape to. Perhaps there could be a good ending if the collapse serves to push the reset button for America. Somehow we need to shed oppressive big government taxes and regulations. I think it can only happen with a collapse. My fear is that we will never be able to recreate the old America that used to be the greatest and most free country on Earth.