Wednesday 5th of February 2025
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doomsday of debt is coming....

Elon Musk said that if the United States dramatically reigns in its spending and reduces its debt to the central bank, The Federal Reserve, it will go bankrupt. The billionaire tech mogul said that the U.S. has no choice anymore but to fix its rising debt problem.

Musk is going to co-lead a new department tasked with curbing spending under President-elect Donald Trump. However, no ruler will ever cut the debt because doing that will cause a loss of power and all but complete destruction of the economy. But it’ll be interesting to watch the debt continue to spiral out of control while the ruling class claims they’ll be fixing it.

Musk made the remarks in reaction to a post by Kalshi, a financial service that allows users to bet on future events and which makes a prediction on how likely these events are to happen. According to a report by RT, Kalshi claimed that the market has an estimated at 36% chance of annual federal spending being cut by at least $250 billion under Trump. Kalshi also flagged the future Department of Government Efficiency (DOGE), which Musk is set to co-chair with fellow billionaire Vivek Ramaswamy, as the entity that would help slash expenditure.

So a couple of billionaires are going to work to slash a massive debt all for the benefit of those who won’t even make that in a lifetime? Interesting. While we doubt this will have an positive impact on the plebs, we could at least hope that one ruler will be truthful. However, this is the same person who goes Operation Warp Speed off the ground using a military operation to mass inject the same public.

Operation Warp Speed: Trump Is Taking Credit For The “Vaccine” Rollout

Last week, Musk leveraged his social media influence to weigh in on a debate in the US Congress over a stop-gap spending bill. Musk urged his more than 200 million followers on X who are American citizens to contact their representatives on Capitol Hill and express opposition to a proposed spending bill that he said “should not pass.”

“President Trump will return to DC and to the White House, and we will have Republican control of the Senate and the House,” Speaker Mike Johnson commented on the outcome. “Things are going to be very different around here. This was a necessary step to bridge the gap.”

No one “wins” in a central banking system except those with power over others, who can levy taxation at will, and the central banksters themselves.

https://www.shtfplan.com/headline-news/elon-musk-delivers-another-prediction-the-u-s-will-be-bankrupt

 

YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.

 

HYPOCRISY ISN’T ONE OF THE TEN COMMANDMENTS SINS.

HENCE ITS POPULARITY IN THE ABRAHAMIC TRADITIONS…

 

printing more debt....

Yellen: 'Extraordinary measures' to avoid US debt default

US Treasury Secretary Janet Yellen has warned in a letter to Congress that the US could hit its debt limit as early as January 14. The federal government cannot borrow any more money once it hits the debt ceiling.

 

US Treasury Secretary Janet Yellen said her department will need to start taking so-called "extraordinary measures" to prevent the nation from hitting the debt ceiling as early as January 14.

If the US does hit the debt ceiling, the Treasury Department, responsible for ensuring financial security, will not have enough cash on hand to pay back debts.

That's because the Treasury has to take on debt to make sure it has enough money to pay its bills  — which can range from paying for social safety programs to paying interest to investors who have bought government bonds.

Once the US hits the debt ceiling, the Treasury is unable to borrow more money, which could force the country to default on its debt payments. The US has never defaulted on its debt before.

What did Janet Yellen say?

"Treasury expects to hit the statutory debt ceiling between January 14 and January 23," Yellen wrote in a letter addressed to the House and Senate leadership.

The US debt limit was suspended in 2023 after a bipartisan deal between the Democrats and House Republicans.

But the suspension is scheduled to expire on January 2, 2025, forcing the Treasury to begin using so-called extraordinary measures to allow the government to keep paying its bills.

Yellen said that on January 2 the debt is set to decline slightly so the new limit will be reached again later in the month.

"Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures," she said.

"I respectfully urge Congress to act to protect the full faith and credit of the United States," she said.

Congress last week passed a temporary government spending plan that funds the government through March 14 but does not address the debt ceiling. The new Congress will have to negotiate a deal once again at the time.

rm/jsi (AP, Reuters) 

https://www.dw.com/en/yellen-extraordinary-measures-to-avoid-us-debt-default/a-71174399

 

READ FROM TOP.

 

YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.

 

HYPOCRISY ISN’T ONE OF THE TEN COMMANDMENTS SINS.

HENCE ITS POPULARITY IN THE ABRAHAMIC TRADITIONS…

 

 

PLEASE DO NOT BLAME RUSSIA IF WW3 STARTS. BLAME YOURSELF.

 

job losses...

The Middle-Class Metamorphosis (Into Poverty)!

We're beginning with our latest roundup of "Everything's Fine Guise!” reports and revisions:

  • November — Stellantis Motor Company — Announces Vauxhall plant closing at Luton with a loss of 1,100 jobs there
  • November — Stellantis Motor Company — Announces 1,100 layoffs in Ohio, also reducing work at the plant by one shift, after earlier layoffs of 4,000 in the U. S. in September
  • November — Ford Motor Company — Announces 4,000 layoffs in Europe and U. K.
  • November — Marriott Hotels — Announces impending layoffs of 800 corporate-level employees, the CEO says "everything is fine” despite the mass layoffs…seriously, he said that
  • November — Vail Ski Resorts — Announces plan to cut 14% of its corporate workers
  • November — CVS Healthcare — Announces over 400 layoffs next month, more next year
  • November — Visa Payment Systems — Announces layoffs of 1,400 workers and contractors
  • November — Miter Brands (home improvement) — Announces 200 layoffs in coming weeks
  • November — Boeing — Layoffs of 184 at its Mesa Plant alone, it is third-largest employer in the city
  • November — U. S. Magnesium (mining) — More than 180 layoffs from the Salt Lake City office
  • November — Advance Auto Parts — Will close approximately 700 stores nationwide
  • November — Starbucks — Announces annual bonuses will be cut by 40% this year
  • November — Harbor Freight (discount retailer) — Closing all 328 stores across the country
  • November — Nissan — Announces layoffs of at least 9,000 workers in the coming year
  • November — Thyssenkrupp Steel Europe AG — Total of 40%, or 11,000 workers, to be reduced

Please notice, chums, this begins and ends with Europe because whatever is coming is coming globally. (I know you see the same in your neighborhood, but it is also happening everywhere.)

Moreover, while scarcely mentioned at all in Controlled Media it is important to note the whole Longshoreman's Strike never really ended…it went on hiatus. Last month workers walked away from negotiations again. So because you are a loyal Pravda Reader, you are among the first to know.

Finally, despite not being recent news, it is always important to recollect that 60% of Americans are living paycheck-to-paycheck with median credit card debt of over $6,000 each.

And, since we're on that little topic…

The (Credit) Card Trick!

Recently, a friend contacted me from Der Homeland and mentioned how difficult her finances were given the Special Miliary Operation effecting the economy.

The shocking claim? That credit interest rates had risen as high as TWENTY percent!

In reply…er…uh…for store cards the average credit card rate in America was TWENTY-NINE percent.

Worse? Those were the proverbial "good old days” of credit in Uncle Sam Land.

The other week it was reported that numerous corporate cards had busted past the 29.99% threshold of respectability which had been a de facto limit on consumer credit.

Sadly, the discount retailer Big Lots (which this author has tried to champion as a reliable provider of goods for those of limited means) has raised its store credit to…35.99%.

Other filthy Usurers that would make Shylock blush as follows: Academy Sports (sporting goods) at 35.99%, Burlington (discount clothing) at 35.99%, Michaels (craft supplies and home décor) at 35.99%, Petco (pet supplies) at 35,99%.

But WAIT! There's more…JCPenny (retail clothing) 34.99%, myWalgreens (pharmacy) 34.99%, TJX (discount clothing) 34.99%, Meijer (groceries) 34.24%, Nordstrom (retail clothing) 33.65%.

To remind you, Sportsfans, this is DURING the period the Federal Reserve has been LOWERING interest rates overall.

"So what does this mean, Somerset?”

Wise question, friend. Obviously it may be explained by atypical corporate greed…OR, another less popular explanation might be our abovementioned corporate raiders don't expect YOU to be able to pay your bills soon. ALMOST…as if they…anticipated a crash and worsening economic outlook…

Thus, no one wants to be accused of profiting off your hardship — then. Best to raise rates — before.

Naturally, that's just crazy talk…I'm sure it's fine…you go ahead keep racking up that ONE-THIRD interest on your diabetes pills and pork rinds…it's all going to work out splendidly…at least according to what CNBC and Bloomberg tell us each morning.

No worries! Illusion "debunked”!

The (Cost of) Milk Can Escape!

Inflation is cumulative, by which I mean,

Inflation is Cumulative, which is another way of saying,

Inflation is CUMULATIVE!

If your Humble Correspondent hears one more "edumuhcated” Pundit claim because inflation is "down” to 2% this month after rising 20% some months last year that "things are normal again”…

When a $100 item rises to $120 from four years ago, but falls back down to $118 — You Are NOT Saving Money!

Particularly so when your paycheck has not seen a similar increase, or perhaps, no increase at all.

Clearly, I'm not telling you anything you don't already know…but it's worth hearing when everyone in Controlled Media is telling you it's "conspiracy” to notice that nothing is as affordable as it was only a year or two ago.

The Carriage (Car) Vanish!

By way of illustration, after 2025 (TWO WEEKS AWAY) there will be no more new cars in America priced under $20,000 given the discontinuation of the Nissan Versa, Kia Rio and Mitsubishi Mirage.

(Incidentally, laugh all you want, Pundits, but I know FAR more millionaires in Palm Beach who drive Kias than who drive Bentleys…only sports stars and new money morons "invest” in automobiles.)

The median income of a single person in the United States is approximately $42,000 before taxes. Last I checked the Gub'ment is still collecting taxes on new car purchases, so you pay that as well.

Is it reasonable in "the wealthiest country on earth” it costs nearly your entire ANNUAL wage to own a car? (No. It is not.)

Now, in a sane Market Economy there would be a rational actor to seize upon this glaring need.

Instead? We are witnessing layoffs and shutdowns en masse. Does that seem like a healthy environment to you?

Or would it appear that a different agenda is at play?

The Amazing (Ever Rising, Never Falling Stocks) Gravity Effect!

Yet, in spite of all we have reviewed the stocks continue to soar.

It is claimed this is a Trump Trade based on what he "might” do in office. (HINT: Given the prior experience of Trump, he SAYS a whole lot more than he DOES in the Oval Office.)

Even if we grant all our wildest Donald Demands come true…he is, ONE, not in power for another 30 Days, and TWO, not a king, meaning any legislation will take months to pass…if at all. (Obamacare!)

Moreover, should we go way out and presume Trump is totally being truthfully…AND he rules as a sovereign with immediate effect…here are only A FEW things which might go wrong for The Markets:

  • Iran said this week they are intending to attack Israel again,
  • Isreal has said this month maybe they shouldn't wait and should go head and attack Iran,
  • Ukraine keeps lobbing ever more powerful Western-supplied missiles into Russia,
  • Russia keeps reminding everyone (even if they refuse to hear) that they have a few nukes,
  • Every week some insane person is arrested for some wild plot to do mass violence.

So pray tell, pals, what do YOU believe might be the response of the Financial Sector, which in some cases is literally nearing the heights of both the immediate pre-Dot.Com and pre-2008 Bust?

We are currently priced in that: A) Trump does everything, Trump does it quickly, and B) Everything done comes to fruition EXACTLY as anticipated with no unforeseen side-effects, and C) In the next FULL MONTH while cruising around waiting on life to unfold FLAWLESSLY…nothing else bad occurs.

IS THAT RATIONAL TO YOU? IS THIS A THEORY OF COHERENT ECONOMIC BEHAVIOR?

Or, is this complete market euphoria, based on little more than wishful thinking, that requires every single thing to go right and not even one geopolitical thing to go wrong at a time the most volatile regions are engaging in all-out war with each other and plenty of folks hinting at nuclear strikes?

Frankly, I respect you, Dear Reader, but something is desperately amiss here.

I know, at this moment in time, the money looks easy…but now you must see there is a terrible cost.

Like our Main Man above, once the mirage is explained the whole thing becomes clear.

The Escape Artist (Defining Terms and Declaring Exits)

Important to note is Harry was not a magician — Houdini was an illusionist.

The man used his power of the mind to illustrate the fantastical ways in which one may be deceived

(Or allow oneself to be deceived.)

What appears to be solid can prove to be vaporous; seeing is believing, but it is not always reality.

Conversely, when you are seeing hundred-year-old businesses closing all around you with Media Pundits claiming there is nothing to be concerned over, you best have a firm grip on your purse.

Also worth recollecting is the way in which the entertainer died…receiving an unexpected gut-punch.

I desperately fear many casual investors will imminently be suffering a similar fate.

Guy Somerset writes from somewhere in America


See more at https://english.pravda.ru/opinion/161400-houdini_economy/

 

READ FROM TOP.

 

YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.

 

HYPOCRISY ISN’T ONE OF THE TEN COMMANDMENTS SINS.

HENCE ITS POPULARITY IN THE ABRAHAMIC TRADITIONS…

 

 

PLEASE DO NOT BLAME RUSSIA IF WW3 STARTS. BLAME YOURSELF.