At this point, everything the government is doing – and not just the US government but governments everywhere − is not only the wrong thing but exactly the opposite of the right thing. They’re passing more laws, raising taxes, creating more currency and incurring more debt. They should be doing the opposite. We’re currently still in the eye of the storm. Their actions guarantee that when we go back into the hurricane − the trailing edge of the hurricane − it’s going to be much worse and will last much longer than what we saw in 2007 to 2009. Doug Casey
How nice it would be to argue that Mr. Casey is wrong. No matter how much I wish he were, that is unlikely. We are in for very tough times ahead.
Recently I wrote about the insolvency of the federal government and its upcoming default. Mathematically, it is impossible for government to meet its obligations. There simply is not enough income or wealth for it to confiscate. It cannot satisfy the spending path it is on and the promises made.
Cutting spending is a political non-starter. As Mr. Casey argues it is politically impossible:
… just as in Greece, or most of the EU for that matter, most US government spending is on entitlements and welfare programs of various types − mainly Social Security, Medicare, Medicaid, so-called Income Security and pensions. Those things are politically and legally impossible to cut; in fact, they’ll grow. Most of the rest of spending is on so-called “defense,” which alone is 25 percent of the budget. As much as Americans love their military, that’s not going to be cut; in fact, the Republicans, idiotically and unbelievably, want to increase it. The other functions of government − the police, justice and regulatory agencies − are really just a tiny portion of government spending.
Impossible might be a bit strong. There will be talk of cutting spending, but it will be token in nature. No politician can afford to truly cut spending. Even Paul Ryan’s “draconian” budget had debt growing over the next ten years.
The Ebbing Away of Freedom
The Constitution, the document upon which this country was founded and upon which it rose to greatness, is for practical purposes nothing more than a historical artifact. It is now a quaint part of our history. Unfortunately, it provides little constraint on government these days. To the extent that it has remaining significance, it is usually considered an unnecessary barrier, impeding government from what it wants/needs to do, at least in the eyes of the ruling class. The Constitution is mostly ignored with claims that it is no longer relevant to our “complex” world. As Casey put it:
Any part of the Constitution that deals with maintaining liberty for the individual against the state − which is to say the important parts of the document, the parts that made it unique − are now meaningless. In fact, anyone who quotes the Constitution now runs the risk of being jailed, in the