A needle of Hope
amid a haystack of Chaos.

U.S. Economic Meltdown: March 20th, 2006 [READ!!]

Created: Thursday, March 16th, 2006
02:39:46 UTC
Last modified: Thursday, March 16th, 2006
03:26:50 UTC


I realize most of you would classify yourself as politically inactive, but I think a 5 day window from now to the 20th is an almost surrealistic period to impart to the uninquisitive masses (75% of whom think the USA has a population of 1 to 2 billion [1, pdf, p15], [2, ppt]) how thoroughly screwed end-game America's situation is today, because of our would-be Weltführer [3], Dubya.

What I refer to specifically is the Federal debt limit. Bush Sr. and Jr. have done more to increase this debt than any presidents ever. The debt ratio to national GDP has increased 3 fold since Ford [4] and is on an exponential increase in real terms [5] since Bush Jr. took over. On November 18th, 2004, Congress raised the debt limit to 8.18 trillion dollars, it last being set back in 1984 by the Reagan administration, and forecasted to last until 2030. But unexpectedly, "[j]ust the increase in the debt ceiling over the past three years is nearly 2 1/2 times the entire federal debt accumulated between 1776 and 1980." [6]

So what is a debt ceiling? It's basically the same thing as the credit line on a credit card. It's generally quite frustrating to get a significant credit raise, especially if you're already in a fanatical spending frenzy that Bush is in. February 2006 marked (in inflation-adjusted terms) the biggest spending month ever [7]. It means that once reached, the government must borrow from other sources or declare itself officially bankrupt, meaning:

  1. It can no longer issue Treasury bonds

  2. It can no longer print more dollar bills (which is basically credit)

  3. It can no longer borrow more money from foreign banks

  4. It can no longer redeem Treasury bonds for money

  5. The dollar would be meaningless overnight should a run by people and/or banks occur.

But wait! We already hit this debt limit, back in January 26th, 2006 [8], and the gov'ment has been borrowing from under every bed and inside every cupboard ever since. And according to Secretary of the Treasury Snow, there is *nothing* left to borrow against. Nothing, as in nada, as in nothing but default come March 20th, 2006 [9]. And banks all over the world are bracing for the total economic meltdown that will happen worldwide and far sooner than you wish or think [10].

Now, imagine a city where farming has been outsourced and populations must travel miles just to get to the grocery store. Imagine less than 24 hours of stockpiled food there. Imagine 9 million hungry souls who do not have the faintest idea how to survive in a semi-tropical environment that could support maybe a few thousand on the meager agricultural base it has left. Congrats, you just pictured Houston. Now multiply that by a factor of 20 and you have the USA at large. We would *need* an outright dictatorship just to distribute oil needed for distributing food; and wouldn't that be the point? Starving people can't form effective resistances; just look at 1950s Ukraine.

[Sensationalism is the point! I see no one acting, not even other people informing others...no one is even researching. If thousands of your peers dead and dying and hundreds of thousands of people dying in Iraq don't motivate people, maybe the specter of their own starvation will? ::sigh:: Apathy, the opposite of love]

I figure people need to start thinking and thinking now. Serious times and we shouldn't just go about as if we didn't know any better simply because there seems to be so few solutions. We *must* start talking alternatives to fiat monetary systems (such as ROCS [11]). And we need to have such systems in place in the very short term, no matter how inefficient they are or how much we personally bungle them. Having an effective alternative to US commerce would save many lives and maintain peace in our communities in much the way they did in economically-depressed Europe in the 30s.

Look, regardless of whether this happens on March 20th or December 31st, the fact is that it must happen unless the Bush Administration changes course dramatically *and* is blessed with a tremendously successful economy. So don't brush this off if the worst doesn't happen in 5 days. Let's all pray that it doesn't.

-HopeSeekr of xMule-