According to the Associated Press:
The House passed legislation Tuesday to avert a partial government shutdown and fund federal agencies through September, providing critical momentum as the measure now moves to the Senate, where bipartisan support will be needed to get it over the finish line.
Folks, our representatives in Washington DC are not playing a political parlor game or engaging in a cute, partisan competition. If passed by the Senate, this measure would continue current levels of federal spending through September, 2025!
What does this mean, and why is it so important? It means out-of-control federal deficit spending will continue at unprecedented levels for another six months. It means the federal government will continue to spend at record levels while only off-setting a fraction of this spending with revenue.
Why is this so important to you and me? If nothing is done to stop this looming disaster, caused primarily by monopolistic medical costs, we will all experience dire, life-threatening consequences.
Karl Denninger, a respected and experienced economic forecaster, has just published an article which gets into the specifics of the BIG TROUBLE heading our way. It ain’t pretty. I would encourage you to read Karl’s entire article.
Karl writes:
It is not possible to stop this in-process trainwreck now without serious disruption to our economy…. $296 billion in all revenues and $603 billion spent last month…. If we do not stop it now the consequences literally grow by the day and risk fiscal and possibly even civil collapse… …this foolery must be stopped with finality so that NEVER AGAIN can a federal department [Health and Human Services] find itself collecting only sixteen percent of its spend in taxes and being a full THIRD of every dollar the government spends; there is no way we will get through the next couple of years without this blowing up the economy.
Karl adds that if the President and Congress continue to kick the Health and Human Services deficit-spending can down the road and do nothing now “all assets will collapse in price, [interest] rates will soar irrespective of The Fed cutting off consumer and corporate borrowing and unemployment will shoot to the moon concurrent with real shortages and perhaps worse.”
Karl argues that the American healthcare system, as it currently stands, is essentially a monopoly which must be busted up now in order to prevent total, economic ruin. Karl explains in detail how this must be done. In essence, Karl is saying we must do what it takes now to stop monopolistic costs and out-of-control spending, endure the inevitable, economic depression as the system clears, or suffer total economic collapse and destruction a few months down the road.
Everything I know about economics supports Karl's opinion. I completely agree with him.
Look, we are all reasonable adults. Most of us understand that something is gravely wrong with our current economic situation. We know instinctively that we are being fleeced by grifting, powerful elites in Washington DC. We can feel ourselves being slowly suffocated by the multi-$-Trillion runaway, federal government leviathan.
Some of us will regard Karl's article as a call to action. We will send Karl’s article to our representatives in Washington and demand immediate action.
Some of us will sit on our hands. We will laugh off Karl’s article as Chicken-Little doomsaying or fear mongering or cheap political partisanship.
Some of us will tighten our belts and prepare for the runaway train that is coming down the tracks straight at us from the east.
Whatever some of us may do or may not do, there is one thing we all cannot do. When that runaway train smashes into us -- destroying our savings and wrecking our very way of life -- we cannot say we weren’t warned!
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