A truly existential National Security threat
Posted on Zero Hedge on November 7, 2010
FOR THE LIFE OF ME, I CANNOT FATHOM WHY ANYONE would waste one calorie of mental energy attempting to debate/rebut the relative merits of the purposeful lie that is QE2. Hello! The entire raft of policy prescriptions presented for public consumption during this crisis – both monetary & fiscal – have had only one intent: deceit.
Yes, the objective all along has been to deceive the body politic about the true nature of the underlying risk: derivatives exposure. And this exposure is so great that it represents a truly existential national security threat. Hence, the (criminal) partnership between governments, central banks and financial institutions to try and push back the day of final reckoning.
The problem isn’t really the total absolute debt, it’s the lack of viable growth alternatives to reduce the net nominal debt to a manageable basis. If you don’t see/hear an official addressing the core essence of the economy and the ability to provide a sustainable employment basis, then it’s all just a waste of electrons.
This obsession with Bennie & the Fed has got to stop. I guess he might have two months or so to continue hogging the spotlight, but when the 112th Congress is sworn in next year, it’s show time. The beauty of their position is that we (and them – no one is getting out of this unscathed) are screwed either way:
They either tacitly let Ben continue by approving an increase in the debt ceiling or they don’t. If they do, we will have a veritable revolution on our hands, and if they don’t, then the deflationary collapse that has been forestalled for two years will finally commence.
2011 is going to be a very “interesting” year.