Money Confiscation And Martial Law Unavoidable In US At This Point

The wave of capital destruction which many have been warning about for the last few years, is now breaking like a tsunami – Poland, Ireland, Spain, Germany, and the rest of the Euro-zone are being inundated with failures and the overhang of immediate risk is effectively unsurvivable for the currency union, at this point.

The US is actually in just as acute and critical a fiscal and economic predicament – The “Federal Reserve” is out of functional options (save for outright confiscation) as Bloomberg reported in July 2010: delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

In addition to the intractable Federal fiscal profligacy, 44 out of our 50 states are functionally insolvent, (the top five are Rhode Island, Connecticut, Massachusetts, Illinois, and Hawaii) as well as hundreds of municipalities and municipal sub-entities such as school districts and water districts on the verge of bankruptcy. Interestingly, many states restrict the ability of municipalities to file bankruptcy – only 12 States provide blanket authorization for a city to file Chapter 9, and yet a full 22 States prevent a municipal entity from filing Chapter 9 proceedings altogether.

Worse, there is no functional mechanism of law in place for dealing with more than 75% of state and municipal debt. Therefore, as the damn breaks and the financial curettage goes into overdrive, you can fairly assume that individual citizens and small businesses will take it in the seat of the pants, while large corporations who have been making their campaign contributions will be protected to the greatest extent possible by state legislatures and “special panels” delegated by state executives to bail in ailing municipalities.

Re-published Monday, 2nd June 2014 at [link to www.pakalertpress.com]

Originally Published 7 September 2013 at [link to ncrenegade.com]


Brace yourselves, this will hurt a little



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