Jim Sinclair’s Commentary
JB Slear says there is no black box in his car.
The True Level And Effect Of The Real Debt
To the amazement of the young turks and talking heads of Wall Street, economic law has not been repealed. When misuse of finance to the extreme (OTC derivative fraud) and exotic tactics are used to pretend solvency of financial entity balance sheets, the result will be not in terms of phony figures MSM doses daily to the sheeple, but rather in direct relationship to the degree of the true number in the insolvent categories of finance. The true number of OTC derivatives is above one quadrillion dollars as measured by the BIS before they cut the number in half by changing their computer program to value to maturity (which assumes all pay off, yet few will). The conclusion based on economic law is that we have not seen anything yet. The balance sheets must balance and to accomplish that assets must equal liabilities. That is the foundational fact of what I have just told you. In time they will but the process is going to be Mayan calendar event of sorts.
This is why QE must continue to infinity which inherently also means debt must continue to infinity, or else.
"In short, if the government confiscated the entire adjusted gross income of these American taxpayers, plus all of the corporate taxable income in the year before the recession, it wouldn’t be nearly enough to fund the over $8 trillion per year in the growth of U.S. liabilities. Some public officials and pundits claim we can dig our way out through tax increases on upper-income earners, or even all taxpayers. In reality, that would amount to bailing out the Pacific Ocean with a teaspoon. Only by addressing these unsustainable spending commitments can the nation’s debt and deficit problems be solved."
Cox and Archer: Why $16 Trillion Only Hints at the True U.S. Debt
Hiding the government’s liabilities from the public makes it seem that we can tax our way out of mounting deficits. We can’t.
By CHRIS COX AND BILL ARCHER WSJ
A decade and a half ago, both of us served on President Clinton’s Bipartisan Commission on Entitlement and Tax Reform, the forerunner to President Obama’s recent National Commission on Fiscal Responsibility and Reform. In 1994 we predicted that, unless something was done to control runaway entitlement spending, Medicare and Social Security would eventually go bankrupt or confront severe benefit cuts.
Eighteen years later, nothing has been done. Why? The usual reason is that entitlement reform is the third rail of American politics. That explanation presupposes voter demand for entitlements at any cost, even if it means bankrupting the nation.
A better explanation is that the full extent of the problem has remained hidden from policy makers and the public because of less than transparent government financial statements. How else could responsible officials claim that Medicare and Social Security have the resources they need to fulfill their commitments for years to come?
As Washington wrestles with the roughly $600 billion "fiscal cliff" and the 2013 budget, the far greater fiscal challenge of the U.S. government’s unfunded pension and health-care liabilities remains offstage. The truly important figures would appear on the federal balance sheet—if the government prepared an accurate one.
But it hasn’t. For years, the government has gotten by without having to produce the kind of financial statements that are required of most significant for-profit and nonprofit enterprises. The U.S. Treasury "balance sheet" does list liabilities such as Treasury debt issued to the public, federal employee pensions, and post-retirement health benefits. But it does not include the unfunded liabilities of Medicare, Social Security and other outsized and very real obligations.
As a result, fiscal policy discussions generally focus on current-year budget deficits, the accumulated national debt, and the relationships between these two items and gross domestic product. We most often hear about the alarming $15.96 trillion national debt (more than 100% of GDP), and the 2012 budget deficit of $1.1 trillion (6.97% of GDP). As dangerous as those numbers are, they do not begin to tell the story of the federal government’s true liabilities.
Jim Sinclair’s Commentary
My personal take is that the Mayan’s are totally correct What is unknown to the masses is that this was an economic calendar and the world that ends as a process from that day is the Western world’s economic viability in terms of currency depreciation. The calendar therefore predicted the election of a socialist president, the office of the Fed being in the hand of Bernanke and then in time, Yellen as Fed Chairperson. What is going to float into space is not the population of the planet, but rather the fiat currency produced by the inhabitants of the planet. I might be kidding, but maybe I am not. Let look back on this date in 2014 – 2015.
Mayans Banned From Their Home, Not Allowed to Perform Rituals
Published November 30, 2012
Fox News Latino
MEXICO CITY – The end of the current era in the Mayan long-count calendar is approaching.
With dancing, incense and rituals designed to thank the gods, the Mayans performed the "New Fire" ceremony Thursday at a park in Mexico City, but complained they have been barred by authorities from performing rituals at their ancestral temples in the Maya region.
The Mayans measure time in 394-year periods known as Baktuns. The 13th Baktun ends around Dec. 21, and 13 is considered a sacred number for the Maya.
The estimated 800,000 surviving Mayans in Mexico are hoping for a better new Baktun than the one now ending, which began around 1618. It included the painful aftermath of the Spanish conquest in which Mayans and other indigenous groups saw their temples and sacred writings systematically destroyed and their population decimated by European diseases and forced labor.
"This is the ending of an era for the Maya, an era which has been very intense for us, in which we have had suffering and pain," said Mayan priest Jose Manrique Esquivel, 52, who wore a feather headdress and body paint for the ceremony. For the new Baktun, he said, "we are praying the wars, the conflicts, the hunger to end."