County tax revenue is on the ropes and about to hit the mat. Make no mistake. The only difference between a County and the Federal State is that the latter can, for a time, maintain the illusion of solvency by borrowing more. However, it is now abundantly clear that the Federal Government can now only buy government debt from itself. This is what monetization is all about.
A fiat monetary system of floating exchange rates, depends on each sovereign country member of the system buying another country’s debt. If you are able to visualize the absurdity of this system in the first place, then the reasons that will signal the system’s demise should be clear too.
Governments purchasing their own debt rather that the debt of other countries is a clear sign that the system has broken down.
A breakdown in the tax revenue flow at city, municipal, county and state level guarantees that there is a breakdown in tax revenue at federal state too. The fact that governments today are monetizing their own debt guarantees that the fiat monetary system has broken down.
As social costs rise and as social expenditure must by necessity be curtailed, civil unrest will rise. As civil unrest rises, governments will fall.
No western politician is about to relinquish power. Before civil unrest will get out of hand, we’ll have us a world war.
“After five hours of calling out a drumbeat of “no bid” for properties listed in an auction book as thick as a city phone directory, the energy of the county auctioneer began to flag. OK,” he said. “We only have 300 more pages to go.” […] “Despite a minimum bid of $500, less than a fifth of the Detroit land was sold after four days. The county had no estimate of how much was raised by the auction, a second attempt to sell property that had failed to find buyers for the full amount of back taxes in September.”
Tags: bankruptcy, boondoggle, consumer expenditure, credit, crisis, debt, deflation, deleveraging, fiat money, fraud, inflation, joblessness, money multiplier, politics, poverty, revolution, scandal, unemployment, war, white collar crime