Oil may sell for $100 a barrel, delivered to the refinery. But it may cost more than $100 to deliver it. That’s why most of the world’s oil ‘reserves’ remain in reserve.
It seems to me that every time someone "HAS" to sell something for quick cask, it is usually at a loss. IF, all those assets could be sold for what the government believes is a GOOD price, then WE would be slaves to whoever bought the land! Plus, we would be taken over by some people who really don't like us very much. WHO EVER DREAMED UP THIS CRAZY SCHEME MUST BE BRAIN DEAD! The only real chance for economic survival is to "live in our pay grade". What ever lies ahead isn't going to be pretty. "DON'T SELL ANY GOLD"!!!!
Yes I know I am crazy for thinking we could ever adjust our spending...but I can dream.
Jim, definitely like your "HOPIUM". And, I agree your "hopium" ought to be gold. And, what happened to the US$ (and us peons) when the "Golden Yuan" becomes a reality? No one trusts the U.S. and because there is so much sloshing around the world, it is going to take some time for the world to come to grip with the financial mess it is in. Going to be horrific..........
You are correct. Consider this, a 1913 USD's purchasing power is about $0.03 today in currency. A 1913 ounce of gold was about $25.00. This morning at 0500 it was $4620.20 in USD's. If I need to sell some gold I still have something to buy food with. As history shows us, there is always a barter system to get around the "official" government system. There's a good reason why people coming from other countries prefer to keep gold and silver on hand.
Our problem is not assets, and it never has been. Our problem is liabilities, which are created by government and can only be reduced by cutting back on government. We, as a nation, as a people, and as an electorate have not found the need, much less the will, to bring government in line with what we can afford. The way to cut deficits and debt is to cut overhead. Our elected officials are experts in pandering. We, the people, are spoiled and expect pandering. It's a match made in hell. We need to learn what Nancy Reagan said: "Just say 'No'." Best always. PM
Yep - I am oh so certain that will come to pass. Ya think? How did that work out for Midas? And who will be Trump's "satyr Silenus" to give him the golden touch? If one looks reality in the face, there is no solution - simple or otherwise. Folks it is going to be uglier than anyone imagines...........Got Gold (or silver)!
The solution to redress our massive national debt -- the largest in human history; one surpassing all the national deficits of every other country on this planet -- is exquisitely simple.
And, on a smaller scale, it's applicable to every working person saddled with debt too.
But, alas, it's not being employed by those whom we have elected to represent our interests since the beginning of the 21st century.
The last time we came close to reducing our national debt was when Clinton turned over budget surplus to George Bush.
But, instead of using it to reduce our national debt, Bush gave $200 to the taxpayers
It's been growing ever since, especially due to Trump and to Biden
Ol' Jimm, each to his own. If your hopium makes you feel good about the state of affairs, go for it. But I do think having some physical gold and silver will tide you over if/when the US$ and the western financial system collapse. Better safe than sorry!
Sure. 100% agree. Let me ask: How successful have we been in reining in government, much less actually pruning it back (to mix metaphors)? Best always. PM
They omitted from the Constitution the requirement to balance the budget.
More: Although I’ve periodically suggested we sell Guam and Hawaii to the Chinese, I’m now thinking of turning our military mis-adventures into simple conquest to sell tactics
Aw, come on, Jimm, give the Boys a break! Undoubtedly they thought it was self-evident we needed to balance the budget. Besides, we could have amended the Constitution to accomplish that. How many times have we successfully amended the Constitution? It can be done. In fact, Congress and the President can balance the budget on their own recognizance. We don't WANT to do it; and that's the core problem. Best always. PM
More precisely, it's those whom we put in office who don't want an Amendment compelling them to spend no more than revenue in hand.
Dozens of initiatives have been made, however
The closest occurred in 1995. The House got the required 2/3's approval but the Senate fell short by ONE VOTE
Both houses of Congress were controlled by the GOP too.
Newt Gingrich was Speaker of the House, Bob Dole was Senate Majority Leader and Clinton was president (who notwithstanding no Balanced Budget Amendment, produced many anyway)
You know what? If "we" are putting those people in, and "we" find out "they" don't want to be responsible, doesn't that still come back on us, especially if it happens over and over? Just asking... Best always. PM
I was looking at information that suggested China’s debt in terms of GDP and quantum was greater than the US. Not to mention similar extravagant numbers for every developed nation on Earth - with few exceptions. Very sobering.
Good Morning Bill. For many decades I have been hearing this same argument that there is no problem with our debt because of all the natural resources and different types of property that the government owns. It never seemed right to me, but I was never able to put why it didn't. You have broken the economics down so that it finally makes sense. Thank you again. Sincerely, Bob
“No matter, the ‘going-out-of-business’ sale might bring in enough to retire a third of the national debt. But wait. Deficits add about $2 trillion to the debt each year. Within six or seven years, the debt would be back to where it was...”
Lived through this madness at my company as it ‘flew’ toward bankruptcy post-9/11. Management sold off assets just to lease them back. I swear, they must have hawked everything, even the break room coffee pot.
But alas, as the underlying business model flaws were never corrected, along with VERY impressive senior management bonuses for all that hard work, the debt still piled up as all the cash was consumed. All senior management did was stave off the inevitable.
Of course, once the inevitable bankruptcy hit, that senior management bunch had LONG since bailed out with their golden parachutes, leaving a new group to fix the mess and the employees with massive wage reductions.
Throwing your furniture into the fire only warms you for a little while, but sooner than you think the fire goes out, and you worse off than before. Now you have to sleep on the cold hard floor (of reality.)
Our debt as a nation cannot ever be paid. Everyone knows this. It is obvious.
And now, even the interest on the debt is becoming too much to service. The solution to this dilemma is also obvious. Declare bankruptcy and default on the debt. Issue new fiat currency.
Stop spending more than we get as income. Begin living within our means. Pay cash for everything.
But we, as a nation, will not do what is necessary. We will go along until we can not keep going along and we crash the entire world economy.
No politician has the courage to suggest living within our means.
So, when it all comes down around our heads, just try to not be buried under the rubble of a once great nation. In fact, maybe not be in this nation at all when it fails. Leave before the great crash.
Come back when the fire sale happens. Use your gold to buy assets at one cent on the dollar.
Help rebuild the U.S. from the ashes. And perhaps help restructure the entire financial system to avoid doing it all over again.
Har, har, har, har! A "collection of eager buyers." Har, har, har, har! But you forgot about all the people who bought Trump's crap all these years. Surely, we could get a premium price from them. They'd be selling the shirt off their backs to get a piece of Trump National park.
Thanks for the reality check, Bill. Your piece helped bring a little perspective to an uncomprehendable debt. Can you tell me if there is any truth to the " freeze the federal budget" at today's level with no COLA increases for the next 10/20 years argument. I know there are too many on the Gov't teat for it to happen, but does it work over time ?
never fear there are always folks who'll support the USofA in a little country in the middle east that has sucked the wealth out of USA and every other prior empire of human creation, only to gain a few shekels of land that their god told them was theirs for the taking permanently .. no questions asked .. all things in the universe are subject to 'change' but not god's law as written in Deuteronomy .. just ask any them from NY to FL millions came and looted the easy pickings and are living in their idea of heaven on earth along the warmer coastlines .. until .. yes until the planet <not Yahweh> shows our puny species what forces are really in control and not a 5000 year old fiction. Time will revel all, but there needs be much gnashing of teeth tears and death!
Let's put people who have no knowledge of economics in charge of spending. What could go wrong?
Not sure I understand, are not those people already in charge?
Tom, that is Kevin's point. Just saying........
Yes I know, just having a little fun.
It seems to me that every time someone "HAS" to sell something for quick cask, it is usually at a loss. IF, all those assets could be sold for what the government believes is a GOOD price, then WE would be slaves to whoever bought the land! Plus, we would be taken over by some people who really don't like us very much. WHO EVER DREAMED UP THIS CRAZY SCHEME MUST BE BRAIN DEAD! The only real chance for economic survival is to "live in our pay grade". What ever lies ahead isn't going to be pretty. "DON'T SELL ANY GOLD"!!!!
Yes I know I am crazy for thinking we could ever adjust our spending...but I can dream.
Jim Marshall
Jim, definitely like your "HOPIUM". And, I agree your "hopium" ought to be gold. And, what happened to the US$ (and us peons) when the "Golden Yuan" becomes a reality? No one trusts the U.S. and because there is so much sloshing around the world, it is going to take some time for the world to come to grip with the financial mess it is in. Going to be horrific..........
The good news is an ounce of Gold will always be worth an ounce of GOLD in whatever currency dominates the global market.
Jim
It's the "after tax" value that we still have to worry about. 28% today- ??? tomorrow.
You are correct. Consider this, a 1913 USD's purchasing power is about $0.03 today in currency. A 1913 ounce of gold was about $25.00. This morning at 0500 it was $4620.20 in USD's. If I need to sell some gold I still have something to buy food with. As history shows us, there is always a barter system to get around the "official" government system. There's a good reason why people coming from other countries prefer to keep gold and silver on hand.
Jim
Our problem is not assets, and it never has been. Our problem is liabilities, which are created by government and can only be reduced by cutting back on government. We, as a nation, as a people, and as an electorate have not found the need, much less the will, to bring government in line with what we can afford. The way to cut deficits and debt is to cut overhead. Our elected officials are experts in pandering. We, the people, are spoiled and expect pandering. It's a match made in hell. We need to learn what Nancy Reagan said: "Just say 'No'." Best always. PM
The solution is simple:
Enable the private sector to produce more while the Federal government spends less.
After all, the former is the wealth-maker; the latter consumes it.
Therefore, more wealth minus less wealth consumption = declining national deficit
Yep - I am oh so certain that will come to pass. Ya think? How did that work out for Midas? And who will be Trump's "satyr Silenus" to give him the golden touch? If one looks reality in the face, there is no solution - simple or otherwise. Folks it is going to be uglier than anyone imagines...........Got Gold (or silver)!
I respectfully disagree.
The solution to redress our massive national debt -- the largest in human history; one surpassing all the national deficits of every other country on this planet -- is exquisitely simple.
And, on a smaller scale, it's applicable to every working person saddled with debt too.
But, alas, it's not being employed by those whom we have elected to represent our interests since the beginning of the 21st century.
The last time we came close to reducing our national debt was when Clinton turned over budget surplus to George Bush.
But, instead of using it to reduce our national debt, Bush gave $200 to the taxpayers
It's been growing ever since, especially due to Trump and to Biden
Man…here I go again. You’re spot-on, Jimm.
Ol' Jimm, each to his own. If your hopium makes you feel good about the state of affairs, go for it. But I do think having some physical gold and silver will tide you over if/when the US$ and the western financial system collapse. Better safe than sorry!
Sure. 100% agree. Let me ask: How successful have we been in reining in government, much less actually pruning it back (to mix metaphors)? Best always. PM
I blame our founding fathers.
They omitted from the Constitution the requirement to balance the budget.
More: Although I’ve periodically suggested we sell Guam and Hawaii to the Chinese, I’m now thinking of turning our military mis-adventures into simple conquest to sell tactics
Aw, come on, Jimm, give the Boys a break! Undoubtedly they thought it was self-evident we needed to balance the budget. Besides, we could have amended the Constitution to accomplish that. How many times have we successfully amended the Constitution? It can be done. In fact, Congress and the President can balance the budget on their own recognizance. We don't WANT to do it; and that's the core problem. Best always. PM
More precisely, it's those whom we put in office who don't want an Amendment compelling them to spend no more than revenue in hand.
Dozens of initiatives have been made, however
The closest occurred in 1995. The House got the required 2/3's approval but the Senate fell short by ONE VOTE
Both houses of Congress were controlled by the GOP too.
Newt Gingrich was Speaker of the House, Bob Dole was Senate Majority Leader and Clinton was president (who notwithstanding no Balanced Budget Amendment, produced many anyway)
You know what? If "we" are putting those people in, and "we" find out "they" don't want to be responsible, doesn't that still come back on us, especially if it happens over and over? Just asking... Best always. PM
Yes
The failing is because most of those who constitute "we" are oblivious of elementary civics.
They are not so much informed citizens as they are passive observers.
And they are easily cajoled by smooth talking snake oil salesmen.
Hence we have the ethically challenged DJT foremost because his Democratic opponent was worse.
I was looking at information that suggested China’s debt in terms of GDP and quantum was greater than the US. Not to mention similar extravagant numbers for every developed nation on Earth - with few exceptions. Very sobering.
A balanced budget stipulated in the constitution wouldn't make any difference, Jimm.
Politicians and bureaucrats would just ignore it or find a work around just like they do with so many other things stipulated in the constitution.
Again, Jimm, I 100% agree…man, what’s going on here? ;-)
Good Morning Bill. For many decades I have been hearing this same argument that there is no problem with our debt because of all the natural resources and different types of property that the government owns. It never seemed right to me, but I was never able to put why it didn't. You have broken the economics down so that it finally makes sense. Thank you again. Sincerely, Bob
“No matter, the ‘going-out-of-business’ sale might bring in enough to retire a third of the national debt. But wait. Deficits add about $2 trillion to the debt each year. Within six or seven years, the debt would be back to where it was...”
Lived through this madness at my company as it ‘flew’ toward bankruptcy post-9/11. Management sold off assets just to lease them back. I swear, they must have hawked everything, even the break room coffee pot.
But alas, as the underlying business model flaws were never corrected, along with VERY impressive senior management bonuses for all that hard work, the debt still piled up as all the cash was consumed. All senior management did was stave off the inevitable.
Of course, once the inevitable bankruptcy hit, that senior management bunch had LONG since bailed out with their golden parachutes, leaving a new group to fix the mess and the employees with massive wage reductions.
Throwing your furniture into the fire only warms you for a little while, but sooner than you think the fire goes out, and you worse off than before. Now you have to sleep on the cold hard floor (of reality.)
Our debt as a nation cannot ever be paid. Everyone knows this. It is obvious.
And now, even the interest on the debt is becoming too much to service. The solution to this dilemma is also obvious. Declare bankruptcy and default on the debt. Issue new fiat currency.
Stop spending more than we get as income. Begin living within our means. Pay cash for everything.
But we, as a nation, will not do what is necessary. We will go along until we can not keep going along and we crash the entire world economy.
No politician has the courage to suggest living within our means.
So, when it all comes down around our heads, just try to not be buried under the rubble of a once great nation. In fact, maybe not be in this nation at all when it fails. Leave before the great crash.
Come back when the fire sale happens. Use your gold to buy assets at one cent on the dollar.
Help rebuild the U.S. from the ashes. And perhaps help restructure the entire financial system to avoid doing it all over again.
Just a thought.
A default on the debt will wipe out everyones retirement savings.
What will be the result of that Tom?
Har, har, har, har! A "collection of eager buyers." Har, har, har, har! But you forgot about all the people who bought Trump's crap all these years. Surely, we could get a premium price from them. They'd be selling the shirt off their backs to get a piece of Trump National park.
Thanks for the reality check, Bill. Your piece helped bring a little perspective to an uncomprehendable debt. Can you tell me if there is any truth to the " freeze the federal budget" at today's level with no COLA increases for the next 10/20 years argument. I know there are too many on the Gov't teat for it to happen, but does it work over time ?
never fear there are always folks who'll support the USofA in a little country in the middle east that has sucked the wealth out of USA and every other prior empire of human creation, only to gain a few shekels of land that their god told them was theirs for the taking permanently .. no questions asked .. all things in the universe are subject to 'change' but not god's law as written in Deuteronomy .. just ask any them from NY to FL millions came and looted the easy pickings and are living in their idea of heaven on earth along the warmer coastlines .. until .. yes until the planet <not Yahweh> shows our puny species what forces are really in control and not a 5000 year old fiction. Time will revel all, but there needs be much gnashing of teeth tears and death!