Deus Ex Machina

For those of you who are not familiar with this Latin term, let me give you a brief Explanation.  “god from the machine”; plural: dei ex machina) is a plot device whereby a seemingly unsolvable problem is suddenly and abruptly solved with the contrived and unexpected intervention of some new event, character, ability, or object. It appears that both Europe and the USA will go merrily along as if there is a care in the world….what …Me Worry….Nah,… Not me… Mean while, we get word today of  “Italy just announcing its all-time record high general government debt load at EUR 1.973 trillion. What is perhaps most stunning, given all the talk of austerity, cutting back, reforms, and change is that the size of this debt is growing at an ever-increasing pace that is simply stunning.” (referenced from Zero Hedge)

 

Does that look or sound familiar? Well it should. Here in America, we like to Tsk… Tsk…the Europeans on their debt problems but we are exactly the same if not worse than they are. Take a look at the on going debt clock here in this country (http://zfacts.com/p/789.html) We are fast closing in on 16 trillion dollars of debt and even this is a lie. We have a boat load of debt that is not on the books. That’s called, OFF BALANCE SHEET BOOK KEEPING. You know,…. when you have obligations which would completely make a mockery of the budgetary process, you just make a statement that these are, “off budgetary items and they suddenly do not exist.” (Wink, Wink, Nod, Nod) Try that with your personal budget and let me know how that works out for you. (It doesn’t)

 

So here’s the question of the day. How do we, or anybody else who is spending money at the clip we are, expect this will end well? I can only conclude, we are expecting a Deus Ex moment, where all our problems will miraculously disappear from some unexpected event….You know, like Santa Claus, or the Easter Bunny. My personal opinion is, we will have to deal with this and we need to deal with this right now. Over this past week end, Gov. Romney selected his running mate Paul Ryan, as his VP. Choice. Mr. Ryan has the reputation as being a fiscal conservative. I hate to be the spoiler of the party but Paul Ryan’s budgets are compete fantasies. His budgets work out if every thing stays on track for 30 years. What budget has congress ever passed that lasted out to 30 years? Here’s the easy answer. THEY HAVEN’T. What we need to do is get our financial house in order now while we still have some control of events. Yes it will be painful. Yes unemployment will go higher in the shorter term, however, if we ever hope to extricate ourselves from this debt bomb, we need to do this now not later.

 

A perfect example of what will happen here is progressing in Greece, Spain and Italy. They, like the USA, do not want to make any meaningful changes. There is a lot of talk and posturing like last years BS over the Budget but when push comes to shove, there will not be anything meaningful. The Clowns we have elected will not vote to cut entitlements. This goes for both the Democrats and the Republicans. Yes there are some exceptions in both the Senate and the House, but they are too few to have a meaningful impact. Furthermore, do not expect the people who are getting transfer payments from the government, (Last tally 49.5%, this does not include Social Security or Medicare) to vote to have their benefits cut, they won’t.

 

Okay so where does that leave us? Unfortunately, this leaves us with having to deal with this situation AFTER IT BLOWS UP. At some point the debt becomes to great to carry and we will then have a financial implosion of biblical proportions. At this point, it will affect every man woman and child in the USA. Hence we need to make preparations. This does not mean the world ends. It does not mean Mad Max In Thunder Dome, although things could get dicey for a period of time. What it will mean is, we will have to live with in our means what ever those may be. The time to make preparations for this is now. Those preparations should include, some cash at home, three months supply of food and water, more if you can. Short term, there will be mass unemployment. Work on acquiring another skill or two, you never know what you may need.

 

Let me also mention, that no matter what the situation, there will be opportunities to prosper for those who are prepared. Whether you know it or not, the USA is going to go back to making things in this country as it will be too expensive to purchase then abroad. I was in Argentina after they defaulted on their IMF loans back in the early 2001. Yes, things were very difficult there for a period of time, however, it did improve and it did spur on manufacturing in their country. Here is the long and short of this missive. You will need to take care of yourself and your family. Do not expect the government to do a thing. They will be flat broke. You can do this. there is no reason  to panic, start working on this now. Do not go into to debt to do this but work at it steady.

 

Now…let me conclude with this. The government is going to do everything in its power to keep the game going, that includes the LIE. They will print money like there is no tomorrow. Don’t believe me, turn on the debt clock and then come back and tell me its all under control. They will do nothing to cause Panic even when saying something would help you, nevertheless, they can’t control all the news which comes out. (See Blog Post Connecting The Dots) Those waiting for the Deus Ex moment will, in all likelihood, wait in vain. That’s not going to be you, lets get to it. Time is wasting.

 

Rpalick

 

 

 

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