To get to this part, I need to grab back to another article which I wrote on May 6th 2020 called ‘New World Order’ (at https://lawlordtobe.com/2020/05/06/new-world-order/), yet that one also takes a step back and refers to an initial article I wrote in 2013 called ‘It hurts every time, but we love it’ (at https://lawlordtobe.com/2013/02/06/it-hurts-every-time-but-we-love-it/) . In 2013 the US debt was $17,000,000,000,000 (17 trillion), and over 8 years 8 trillion was added, a nice $8,000,000,000,000. This implies that the US government overspends a trillion a year with no exit strategy on how to cope with the debt and it is on both Republicans and Democrats. They raised debt ceiling again and again and this president might be the one who gets to live through the fallout of such stupidity. We (me too) might grab at the ludicrous waste of billions upon billions in only two defence contracts (F-35 and USS Zumwalt) but the problem is a lot larger. The decades wasted by not overhauling the tax system (I suggested changes in 1999, might have been 1998), it would not have solved everything but it could have optionally solved a few things. It is the relentless boasting government approach towards “My Credit Card is too big too refuse!” Yet that is at this point exactly what is going to happen next week Friday. Unless there is another ceiling raised and it merely pushes the problem forward. The larger problem is not merely the politicians, it is their favourite tool the media as well. 4 days ago the Financial Times gave us ‘The US debt ceiling needs to be raised’, and they do give us “The very regularity of fiscal cliff edges inures people to their seriousness. The markets expect Washington to fear default enough to do what is needed in the end.” However none of the media told in clear harsh language to politicians (and naming them) that they need to act and as it is soon too late, the US population will get one of the loudest and harshest wake up calls since December 7th 1941. It will hit them square in the face and there will be no escape. A setting of pensions gone (the US is bankrupt), for many their homes will be lost (the debt collectors will collect on EVERYTHING), infrastructures will collapse (the money is gone) and systems will stop functioning (the US credit card will be destroyed). A setting that continues on for decades, unless the US has any friends left, the US seizes to exist and on the side lines China and Russia will howl with laughter.
Yet not all is lost, the US could become part of the Commonwealth again, although the US politicians will mostly be out for a job, Canada could oversee issues for London and the political seat of power will be in Ottawa, did anyone consider that there was more to my ‘We stand on guard for thee’ article? The article (at https://lawlordtobe.com/2021/10/03/we-stand-on-guard-for-thee/) had a small reference to “CANZUK time, is Canada ready?” When drenched in “Canada has a chance to be a major player in CANZUK to usher in a more politically stable and mutually beneficial version of a modern Commonwealth”, it is the modern Commonwealth part. And in this there is every reason to trim a lot of fat, especially political fat. In 2013 I gave the reader “Those two, when a change is set might mean that the US could be bankrupted overnight” I never saw a pandemic coming, but that pandemic pushed the US straight over the edge into an abyss of debt. It also gave me shivers to sell my IP to an American player, my 5G and I left without anything? Screw that! I would rather take my chances with China. And that is the larger setting, when the brain drain starts and China pays for the IP the avalanche will be complete (not merely me, dozens of others too), the US will have a dwindling IP vault, manufacturing will go to Asia (optionally India too) and the US will be a container of lard, no bones or muscles holding it together. A body of mass with merely the strength of the barrel containing it all.
So as Reuters gives us a day later ‘U.S. debt ceiling impasse warrants nuclear options’ (at https://www.reuters.com/breakingviews/us-debt-ceiling-impasse-warrants-nuclear-options-2021-09-30/) with “That could spare the United States a default, but would force other cuts, possibly in areas like Social Security or military pay.” We see the beginning of a larger stage where the people would soon be left with nothing, it takes a whole new vibe out of “We the people” doesn’t it? And the “Unable to borrow more, the Treasury would have to cut some 40% of federal spending by mid-November”, it is the icing on the cake, a setting of larger dangers to a large chunk of 331,000,000 people in the US. Did you think I was kidding on the US stampede into Canada? The rich will prefer 30% more taxes against nothing and an angry mob at their doorstep. Up to $3.4 trillion in personal wealth will take any option against losing it all in the US. House prices in Monaco will soar (for the really rich) so if Jeff Bezos can offer me €150,000,000 for all my IP (payable in Monaco) I will seriously consider it. Google, Netflix and Amazon will take to the global skies and they will double register their IP to keep it safe and keep it out of governmental hands, because that will be the next stage, the US will need to find money wherever it can be found. A station the US has never faced before. There is one upside, the Kingdom of Saudi Arabia can get their required hardware for dimes on the dollar and optionally buy out a few factories and all their patents putting them on par for their 2030 promise of taking home based defence build projects to a whole new level. The US laughed and sniggered when Wall Street offered vulture solutions to Argentina in 1998, now the vultures are ready and set to rip the US carcass apart. Is it a fair view? That is not in question, yet the stage is now that it is becoming a likely view the only people treated fair are the hard workers who just tried to get by.
Should there be an 11th hour solution of debt ceiling raising, the people will need to consider that the end is nigh and the US did this to themselves. Irresponsible spending for well over 2 decades and with no exit strategy the USA will enter a field it so desperately tried to avoid and with innovators moving to other shores their field of choice becomes ever more limited.
And when you wonder why no one is writing about those dangers, consider that I opted for this day to come for 8 years, I never saw a pandemic, but when you realise that the US was overspending a trillion a year, 83.3 billion a month for 8 years. Did no one catch on that this clambake could come to a sudden stop? Wonder about that part of the equation. I reckon that a lot more people should have seen the dangers after the 2008 events. Now 14 years later the people of the US will face hardships that is 10 times worse than the events of 2008, not merely because of what is now, but it happens when it’s infrastructures, social security and healthcare are totally gutted.
Mozart wrote Requiem 230 years ago, I doubt he ever envisioned it used on an entire nation, but that is life, or the lack thereof.