The USA Government — The Definition of Insanity

History Repeats. Are we in an infinite resonating system?

There are written references on early TAX history, and based on the article— “Taxes in the Ancient Roman World,” we are repeating the mistakes of the past — Quote:

“When the Roman Empire was dying in the late 200’s and early 300’s, their financial resources had been stretched to the limit. They were spending a substantial part of their revenue on people “on the dole” who received from the State free oil, grain, meat, and often wine. The cost of militarily maintaining order and repelling invasions on their far-flung borders was enormous. Immigrants kept flooding into Rome, and the cost of housing and feeding them was draining the treasury. The State had raised taxes on the wealthy so high that many fled their homes and settled in far away foreign lands.”

Like the Romans we are,

1. “Spending a substantial part of our revenue on people on the dole” (dole meaning — The distribution by the government of relief payments to the unemployed).
2. The cost of the military maintaining order and repelling invasions on their far-flung borders was/IS enormous (AND CONTINUOUS)
3. Immigrants kept flooding into Rome, and the cost of housing and feeding them was draining the treasury.”

Unlike the Romans and WORST OF ALL,

1. While we have an irresponsible government (like the Romans did), unlike the Romans, our government does not think twice, incurring DEBTS BEYOND OUR MEANS TO PAY! 33,500,000,000,000 TRILLION DOLLARS and counting.
2. The interest on the debt alone WILL BE the LARGEST single expense in the government from now on.

Unlike the Romans and in another demonstration of irresponsibility, THE IRRESPONSIBLE GOVERNMENT,

1. IS NOT Raising TAXES on the WEALTHY and CORPORATIONS (wealthy “legal” individuals)
2. AND, Continues to take FAVOR from the rich and corporations via THE LOBBY.

Let’s face it; the GOVERNMENT is like a Cemetery: Why?

Read Russell Ackoff’s understanding and critical thinking:

There is a distinction between development and growth which is not clearly understood in our culture and leads to a common mistake that, in the long run, could be fatal — You can grow without development, and you can develop without growth:

For example, a Cemetery grows, but it does not develop anything; on the other hand, Einstein continued to develop way past he stopped growing.

A natural conclusion of that true thought:

The Government is like a Cemetery!

It Just Grows our Debt!

We have, today, the weakest government on earth. COVID almost killed us. The worst mistake Trump made while president was to shut down our economy.

That mistake put us in an economic hole we cannot crawl out of. Back in February 18, 2017, Zerohedge published an article, “The Mother of All Financial Bubbles: “This Is The Very Definition of Unsustainable” submitted by Chris Martenson

The article specified:

“We are now living through the mother of all financial bubbles. We’ve been living with it so long now that we have to take three giant steps backward to even detect its broad outlines.

As a reminder, a bubble exists when asset prices rise beyond what incomes can sustain.”

Three giant steps backward were stated:

1. INFINITE GROWTH IS IMPOSSIBLE! — common sense dictates the earth resources are finite -> The economy of the world is based on these resources -> IFF we want our economy to grow, we would need to CONSUME those resources at a FASTER RATE -> BOTH consumption AND resources are FINITE.
2. WE CAN’T PRINT OUR WAY TO PROSPERITY! — This is equivalent to getting something for nothing — The Principle of Alchemy (how to make gold from lead). “History is replete with the failed attempts of nations to print their way to prosperity.” The Roman Empire’s implosion is explained above.
3. WE CANNOT GROW OUR DEBT MORE THAN OUR INCOME FOREVER! (Our Collective Income is Called the GDP) — This holds true for us, and IT HAS TO HOLD TRUE FOR OUR GOVERNMENT.

Please note the general change in the slope angles of our debt. This continuous change to a higher angle is the most concerning — the Government is spending money like drunken sailors without concern for the People’s ability to pay the debt.

The glide for 9/11 makes a 45-degree angle, and the slope of that angle (denoted by the line is 1 to 1; meaning we are spending 100% of what we make. Since the Bank Crisis of 2008, WE have been borrowing at a glide angle of 3 to 1; meaning we are spending 300%, three times more than what we make EVERY YEAR!!!!!

Let’s try to equate government debt to a house mortgage. ASSUME—

1. The government does not BORROW any more money in the future, and we do not incur more debt after $32 Trillion (FRED has not published the latest numbers).
2. The debt is equivalent to you/me buying a house and taking a mortgage. the median salary in the USA is close to $75,000 (estimate for 2023). With that salary, a bank will help us decide how much house we can afford to borrow for a 30-year Mortgage.
3. If we equate us living within our means to the government and the government plans on paying the “FLAT” DEBT IN 30 years at a 6.00% interest rate (the bank rate).

CALCULATE THE GOV PAYMENT WITH AN AMORTIZATION SCHEDULE.

In round numbers, we would have to pay $192 Billion per month for 30 years. The interest paid is 37 Trillion dollars.

If we paid it “quarterly” like the government likes to operate, the quarterly payment is $576.6 Billion, and the total interest paid is $37.2 Trillion.

Politico explained the 2023 Biden Budget, $5.8 Trillion for 2023. Close to last year’s budget. But THE BUDGET means nothing to the government. They don’t care how much they spend, they only care about what more they can spend at the next “bar.” They don’t have the money? NO PROBLEM, they write a promissory note, and they print more money!

The House Mortgage Similitude

Bankrate.com say: “If you’re making $75,000 each year, your monthly earnings come out to $6,250. To meet the 28 piece of the 28/36 rule, that means your monthly mortgage payment should not exceed $1,750. And for the 36 part, your total monthly debts should not come to more than $2,250.”

But, that house is too small and for all the plans we have we need 3 times our salary, $75,000x3 = $225,000.

We borrow $225,000, and we move in. We pay the interest only, not the principal — $4054 per month.

Then we decide we want to own a whole neighborhood. For that, we need to build a police force and security systems PLUS the plan is to buy more houses at three times my salary every year for the foreseeable future, so we repeat the process — “My Family” has inexhaustible ways of making money, PLUS we can print more if we need it!

So far, we have done that 15 times!

1. We have EXPANDED our surveillance of the neighborhood so we know exactly who lives here and what they think. We have had a few troubled people but we “correct” their thinking with the threat of jail time.
2. We have expanded our Military Space Program and can “Make and Launch” satellites as we wish.
3. We keep expanding our military to match the “greater city” threats and helping some “poor” neighbors.

However, our debt has grown, but DON’T WORRY! “we will get it under control — it is only $75,000x15 = $1,125,000.

We got all the neighbors to buy “Bonds.” a promissory note we invented to continue borrowing money.

We also have other countries to “Lend us money!” for example, China. Since we have such good “Credit,” — people really believe in our neighborhood since, as a whole, we are such innovators and continue to be at the vanguard of progress for the entire “world.”

We bought too many houses — today we have a “BUBBLE.” We are what is called “Overextended.” We bit more than we could chew, and we are going to choke.

Sticky Problem

We now have a sticky problem. As time went by, the weather ruined us a couple of times, then our “Market” went upside down, causing a crash about 75 years ago. Our HOA got together and Made some tough decisions. Like the government did after the 1929 crash —

“In 1932, the Pecora Commission was established by the U.S. Senate to study the causes of the crash.[29] The following year, the U.S. Congress passed the Glass–Steagall Act mandating a separation between commercial banks, which take deposits and extend loans, and investment banks, which underwrite, issue, and distribute stocks, bonds, and other securities.[30]”

After that crash, we became a “Welfare” state. Parts of our neighborhood needed money because there were no jobs or places to live. So, the government stepped in to help us with soup lines at first; later with checks for those who “qualified.” Once the Progressive “Welfare State” was accepted, we enlarged it more and more for other needs.

As always, if the “people” misbehave, never mind the rich people, the little people — they ALL get out of the market and/or went to the bank to “take their money out!” THE GOVERNMENT has to tell us what to do with more laws. NEVER MIND THAT THEY DO NOT FOLLOW THE LAWS THEMSELVES (the Constitution).

Getting back to reality

WE (all of us) are now in a bubble. One year ago, I published an article, “The 2023 Recession.”

Today (July 7, 2023), there are “Prognostications” of another “Market Crash.”

If you think our “progressive welfare government” will take care of you, think again.

The bottom line is we are at fault for believing the “government” will take care of us.

Proof of that is, WE HAVE VOTED FOR THAT. We continue to VOTE for that. Where are the riots in the streets for the squandering of our money?

Sucking from the government is equivalent to sucking from a balloon — eventually, they both go flat!

Today, it isn’t just “the market” going flat. Today, we can add our way of life collapsing due to government excesses on top of ours.

The government will collapse

We are where the soviet union was in the 1980s.

We have a welfare system just like the Soviet Union had, except with more people’s liberties — other than that, we are a welfare state just like they were!

When the interest on the loans the government has, is greater than any extra GDP for the “loans” the government has, the government will be FORCED to cut WELFARE. When this happens, the entire country will pay the price (except for the rich who have inside information).