John Green

More About: Economy - Economics USA

This guy nailed it: The Economic End Game for the US

(article at bottom.)
 
 This information will not mean much to most people.  Even for those who understand it, very few will have the means to do anything about it.  But here it is, the end game laid bare.  Read it several times.  If you are able to gain from it, good for you.
 
I read this last week first here on FP and it haunted me.  I have a degree in economics and needed my mind to mull on it for awhile.  But this guy nailed it.
 
In the process of getting to the end game, as described in this article, you will experience what appears to be inflation and deflation. 
 
Your metals will appear worth a lot and then worth a little. 
 
The endgame is actually quite simple.  It's the IMF 1997 Argentina "treatment".
 
In other words, higher taxes to pay for cut entitlements.  Entitlements will be cut approx 33% across the board.  And taxes will increase approx 20% across the board.
 
Meanwhile those who were able to maintain capital long enough outside of government debt, weathering the storm, as they waited for the higher yielding new government debt series will make out like BANDITS.
 
For that's precisely what they are.
 
 
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Argentina 1997 IMF Plan
 
 
 
2)  http://www.imf.org/external/np/pdr/lessons/100803.pdf

61. The crisis broke with a run of private sector deposits, which fell by more than

US$3.6 billion (6 percent of the deposit base) during November 28–30. The authorities

responded with a wide range of controls on banking and foreign exchange transactions. These

included a weekly limit of Arg$250 on withdrawals from individual bank accounts (el

corralito), a prohibition on banks from granting loans in pesos, and foreign exchange

restrictions on travel and transfers abroad. The ensuing riots and protests—in which more

than 20 demonstrators died—forced the resignation of President de La Rua on December 20.
 

62. By end-2001, both the economy and the public finances were in deep crisis. In

December, economic activity collapsed, with industrial production falling by 18 percent

(year-on-year), construction by 36 percent, and imports by more than 50 percent. Tax

revenues plummeted 17 percent (year-on-year) in the final quarter of 2001 (in December, tax

collections fell by almost 30 percent, year-on year), and despite across-the-board spending

cuts, the federal government ran an overall deficit of 4½ percent of GDP in 2001 against a

(revised) program target of 2½ percent. Provincial finances also deteriorated, with the deficit

widening to 2 percent of GDP against a program target of 1 percent. Moreover, out of

Arg$17 billion of federal transfers to the provinces, about Arg$1 billion were in the form of

federal guarantees of provincial treasury bills (lecops), while the provincial governments

issued about Arg$1.6 billion in provincial bills (quasi-monies) to pay wages and suppliers,

some of which were acceptable by the federal government in lieu of tax payments. On

December 23, the new President Sáa declared the intention to default on government debt

(except on debt that had been subject to the phase I restructuring) and to call presidential

elections within 60 days.

 3) Confiscatory Deflation: The Case for Argentina
 
 

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