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The Dem spending frenzy will lead to disaster

Posted by John T. Reed on

The Dems are going nuts with your grandkids' credit card. Biden is Uncle Sugar buying popularity with teachers, deadbeat college graduates, deadbeat tenants, grade school dropout illegals.
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Come one, come all. The eviction moratorium has been extended another three months. It's unconstitutional some courts have agreed. But when the Supreme Court finally rules against it, I doubt they are going to give landlords a judgment they can collect. It will be a fait accompli. Biden will have bought votes by stealing apartments and bankrupting landlords. Very Soviet of him.
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Now he also plans to let 1.14 million delinquent former students off the hook for their college loans. Who gets ON the hook as a result? You, your kids, your grandkids, their kids.
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What about my two sons who borrowed at AZ, UCSB, and Columbia? They paid off their loans as did my wife and I pay our part of their loans. Can Joe give us a refund and pile that debt on my granddaughter and grandson?
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Party! Party!
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The parents of we Baby Boomers told us the "money doesn't grow on trees." Now we have a president---too old to be a Baby Boomer, and a Democrat Congress who have decided that money DOES grow on trees---the Magic Money Tree. MMT.
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One if these days, this pile of trillions of dollars if federal debt is going to turn into an avalanche. America will have to default on the national debt---just like the students and tenants. Our navy ships at sea will be inable to but fuel to come home and get mothballed. Nations hurt by our default may seize those navy ships and sell them for scrap value to recoup some of the value of their bum US government bonds.
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Americans, including my affluent readers will struggle to get food and hearing fuel and gasoline and quickly run out of items to barter for it on the black market.
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Assets that are not dollar-denominated, like real estate and inventory and vehicles and silver will retain their purchasing power, but they generally do not have the liquidity needed to buy groceries, etc.
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It will be worse than the Great Depression. China may take us over or at least confiscate all our Pacific territory to compensate them for the over $1 T of our bonds they own.
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But if the only one saying this is little old me, nothing to worry about, right?
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A reader listed all his stockpile and barter items.
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You must leave the country during hyperinflation. Your list is laudable but I do not see how you persuade a foreign border guard that you can support yourself in his country. If you cannot, he will not let you in. Must have foreign currency and that currency must NOT be in the US.

My response is the same as above. You must leave the US during hyperinflation. Barter items are merely for the transition from your current status to getting out of the country. For example, you literally need a way to get to the Canadian border.
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At present, people would say, “I’ll drive my car” or “I’ll fly.” How are you going to pay for gas? How are you going to pay for the airline ticket? Will the airport be open?
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Barter and stockpiles are short-term assets and short-term solutions. You must leave the country. Longer term, a stockpile of barter and consumables makes you a robbery target.
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Barter transactions are illegal, dark back alley, bad guys. You are a prime robbery target going to and coming from such black market transactions.
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Also, if you live near farms, barter is more viable. But if you live in an urban area as most do, from whom will you barter food?
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Who will the black market sellers be? Probably the same guys as now: drug dealers and pimps and fences.
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In a non-hyperinflated country, you can live a normal life while waiting for the US government to end the five bad laws they will pass soon after the hyperinflation hits. Those laws are:

• capital controls (outlaw possession of gold or foreign currency)
• price controls
• rationing
• anti-hoarding laws (make stockpiles illegal)
• financial-repression laws
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I expect the period when you need to be outside the US will be six to 24 months. You also need a passport that will not expire during those 24 months. I am not kidding or exaggerating. Ask a Venezuelan.

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