An interesting Solution

Judges at various levels in the United States are making political rulings that show no show no bearing to the laws of the land.  These judges can keep on making rulings and causing a lot of grief.  Not everyone in court can afford to contest these judge’s ruling.

What would happen if a higher court or the Supreme Court ruled against a judge and stated that any other rulings by this judge in the future, would have no merit or judicial enforcement in the court system. This would be a way for the courts to clean their own house. The judge would be out of a job.

It's an interesting solution, could it work?

The Interest Rate Conundrum

Everyone in the United States (I exaggerate) refinance their homes when interest rates hit 2.25% and of course, this was a new 30-year loan that made payments lower, but longer.  And they probably refi-ed so they could take more money out and enjoy life.  Now interest rates have jumped to 6 %---and for some, up to 8%. Many people now find it hard to afford a home.

The banks loaned money at 2.25% long term to homeowners for 30 years.  Now, the banks’ depositors want higher interest rates. Depositors can withdraw their short-term savings and deposit them elsewhere at a higher rate.  The problem is the banks cannot cover the spread.  Essentially, they are bankrupt. They loaned hard money at 2.25% long term, for 30 years, and cannot afford to pay the depositors current rates.  You cannot make a promise long term if the short term makes it impossible.

The government lowered the interest rates artificially to lower the payments on the national debt.  This robbed retired savers of their retirement interest income. Everyone refinanced, and the new problem, inflation crept in.  Raising interest rates only makes it worse. And that is where we are at.

This happened once before with the Savings and Loan collapse of the 1990’s. Of course, no one remembers back that far. Do they? That problem was a minnow, this one is a whale.

The New Bill of Rights for the US of A

 If you are broke and own nothing, you can do whatever you want within reason.  You can shoplift up to $999 per day, every day.  Use the streets as a public toilet. Camp wherever you want. And beat up and threaten any one of your choosing. And if you are an illegal alien, you can drive drunk or beat your wife with a coat hanger and get no jail time.  To add injury to insult, since there is no bail, the perpetrator can return, to beat the crap out of the person who turned him/her in to the police.  And if you are a witness, you get a free swimming lesson in the bathtub or some hot lead air ventilation.

 But if you have a job and pay your taxes, God help you, if you don’t pay that your speeding ticket.  Own a home, you are a sitting duck, the government can tax you to death.  If you have some money, you can be sued for frivolous offenses.  The police will not waste their time arresting a deadbeat or a drug addict. The offender gets released back on the street.   But look like a regular citizen, they can milk you for any offense of the law.

 These new ideas of bail reform (no bail) are destroying our system of law and order. If I can plunder $900 dollars a day and not go to jail, what is that in real wages?  That is $328,500 a year.  I could bore you with what it costs for a working stiff, paying taxes, to afford cocaine, but the point is, he doesn’t have the time to really get involved in drugs like a homeless person can.

So, remember, as a tax paying citizen, you have rights:  the right to pay taxes and the right to obey the laws or be fined by the courts. Be silent and make no waves.

 If you are a dead beat, the laws don’t apply to you.  Do what you want. You have no money and are therefore of no interest to the government.  A sad perspective on life, isn’t it?

Can we spend beyond our means forever?

 Can we spend beyond our means forever? Let's see, 31 trillion dollars times six percent is 1.86 trillion.  That’s the interest on the nation debt.  Add 5 trillion. Recalculate,  now we are at 2.1 trillion in interest on the debt.

The real problem, taxes are not really covering what we are spending.  The National debt is funded by banks that have money deposited in them.  This money is from retirement funds.

You have to admit that retirees have saved for retirement for a lifetime and the money is there, they saved it.  One problem, the banks have loaned the money to the Treasury.  I’m not sure of the amount, but it must be between 31 trillion and 52 trillion.

It’s like Social Security, the money was collected and borrowed from the fund to finance the debts of the federal government. There is an IOU that’s declares, the money has been deposited to the SS fund. The trouble is, it has been borrowed by Congress and has been spent.

Basically, we have to ask one question, “How can our retirement and savings be there if it has already been spent?”

Technically it is there, because people only draw out small amounts and the government can cover the withdrawals.  The Ponzi scheme is getting some sunlight.  At what point does the house of cards collapse?

The retiree is not going to draw out their  whole retirement amount, the tax rates would forbid it.  But what if I told you, the money wasn’t there for everyone, It has been spent and you will not be able to recover it.

The Weimar Republic in 1923 ruined the monetary system of the German Republic. People’s savings were destroyed.  History doesn’t remember much, but people well off, were left with nothing, their savings were gone.

Old people were reduced to scrounging trash cans for something to eat.

This could happen again only this time it will be in the USA.  It kind of sucks, doesn’t it?

The Unseen Catastrophe

 Congress has been printing money at a spendthrift rate.  Interest rates were low, and now they are rising.

The national debt is at 31 trillion.  The big thing for Congress is, what is the interest payment for the next fiscal year?  What are the implications.

As the interest rates rise, so does the interest on the national debt. The thing to remember is, most people in Congress have not had any education relating to economics. The other thing to remember is that most voters have no idea of what economics is all about. We have a lot of people that think everything is normal and today will be like yesterday. So, what this boils down to is the fact that we could have a meltdown.  

It is kind of like Southwest Airlines.  Everything worked until it didn't.  

If /When the interest rates hit 8% the government cannot pay the interest.  What happens at that point? Your 401K is dust.  They have borrowed everything you have saved and spent it.

Can you spell Zimbabwe? 

Remember eggs don't cost more, your currency buys less.

The idea that costs are rising is absurd.  It just takes more dollars for the purchase.  The government has pissed in the whisky. They have printed what they could not tax out of us.

At some point, when they can't pay the interest on the national debt, the real problem begins. Insolvency.

Precious metals could save your retirement.

I've seen cigarettes go from 25 cents a pack to $10--tell me I am wrong.