Brulen, the problem is that Trump is at least trying to propose something, while the establishment continues to operate in a literally make-believe world. “If you add up all the cash sitting in Americans’ checking and savings accounts, you get $11.1 trillion. But according to the Federal Reserve, there are only about 1.4 trillion ‘paper’ dollars in circulation in the U.S.” (Casey Research quoting Federal Reserve figures) That would mean that if just a little over 10% of account holders showed up and wanted their money out, it would be physically impossible to give it to them – it doesn’t exist. It’s all “electronic,” meaning it exists only as pixels on a computer screen or ink on a paper printout. There’s no gold or silver backing a single dime of our “money.” Thus the statement that we’re quite literally operating in a make-believe world. (Note that those $trillions don’t even begin to include the “assets” in other types of accounts such as mutual funds, annuities, government accounts, the Federal Reserve’s massive supply of U.S. debt, foreign holders of U.S. debt, etc.)
And John Boehner’s replacement, Paul Ryan, who promptly rocketed the debt up another $2 trillion or so back in December, simply added to the unreality of what people walk around accepting as reality. It’s a massive virtual reality game, and almost nobody perceives that they’ve got VR equipment over their eyes and in their ears – they think it’s all “real.”
Add to the idiotic insolvency of every bank in America (and probably everywhere else in the world) the following: the Federal Reserve holds about $2.5 trillion of the debt, and the Social Security “trust” fund holds another $2.8 trillion. Ask yourself where the Fed got the “money” to “buy” any of that debt? Of course we know where the Social Security Administration got the money to “purchase” all those U.S. government bonds – it went from our paychecks directly to whatever other government program it was diverted to, and a computer entry was created out of thin air to “credit” the SSA with whatever “equivalent” number of $trillions of dollars the politicians decided looked good in their “trust” fund.
It’s all words in news stories, numbers spit out of a computer onto a screen or paper statement. So, ANY statement that seems to offer a fix is just mere words. And therefore any argument about whether it will work or not, is equal to the system itself: absurdly unreal. It doesn’t really exist.
I find it interesting that in an ironic sense, Trump is proposing something that could actually be a partial reset, while wiping out many of those carefully crafted illusions of “money,” “value,” and “worth.” Yes, the people would get paid in reduced delusion-dollars, but in the process, those “bonds” also get wiped off the books, and are no longer an obligation of the government (i.e. that fraction of the debt disappears). But would Trump’s plan “work?” Of course not – it’s still “paying” for non-existent assets with simply a reduced amount of non-existent money. It’s just that his unreal plan beats anyone else’s unreal plan since the days of Ron Paul’s proposed real plan that would have had predictably catastrophic consequences (which he acknowledged – it’s just that they would have been less catastrophic then, than they would be now, because no one listened back then).
Bonds are owned by all pension plans (municipal, corporate, you name it), virtually all mutual funds, the reserve funds of all insurance companies, etc., etc., etc. – in other words, massive “institutional” investors that affect virtually every living, breathing person in the civilized world. The domino effect, one way or the other, WILL be a collapse. We just don’t know when. I’m just not sure why a comment now about a 3-month old observation about Wal-Mart shelves is even relevant in all this. All I know is that I’m sitting here LMAO at those media pundits and “economists” that criticize this particular plan by Trump, when their only alternative is to create even larger unreality (which is itself an unreal and absurd concept). How does one create “nothing,” let alone make it bigger?