Uncle Sugar is trying to run this whole expensive shebang on debt, in particular, selling debt, bonds.
Well, if ya take a gander, they ain't sellin'..by a lot.
Auction results, partial copy paste, dec 29th
4 week
Tendered Accepted
Primary Dealer7 $71,350,000,000 $8,314,620,000
Direct Bidder8 $5,150,000,000 $657,192,000
Indirect Bidder9 $13,152,888,000 $12,751,977,000
Total Competitive $89,652,888,000 $21,723,789,000
5 year
Tendered Accepted
Primary Dealer6 $75,720,000,000 $17,995,580,000
Direct Bidder7 $7,101,000,000 $5,457,370,000
Indirect Bidder8 $25,753,100,000 $18,437,820,000
Total Competitive $108,574,100,000 $41,890,770,000
"No mas..No mas!"
Man....compounded debt promises offered that are being treated like mutant poison ivy. Go on and extrapolate yourself the outcome from this dichotomy between public happy face from the pols and stock shillers and trillions in proposed expenditures and then stuff like this in the fine print.
We are going to be *lucky* to only have peaceful/no social unrest hyperinflation and a surge in imported goods prices if this keeps up. I can't see any way possible to fund this huge government without running the presses, because no one is gonna eat a 90% tax rate (whatever, some hugemongous number like that), and that is the only alternative they have if they can't sucker in any more foreign so called investment.
Well..there is one..they won't do it, but they could run an emergency government furlough, pretty much shut down at least half of federal agencies, cut all entitlements and pensions in half, throw money in keynesian bucketfuls at public works infrastructure projects, and another huge wad at tax free/tax credits offered energy projects and so on, and try and soak up as much unemployment as possible (including the newly furloughed government workers) into wealth producing employment. And then do an A to Z look at patents and copyrights, eminent domain seize truckloads of them and open source them, to further spur a domestic manufacturing surge to compensate for what is coming. They won't do all of that and a scosh more little tricks like skipping the war on carbon and the healthcare war on everyone, but that is really all that can work at this point. We'll call that the "nixon on crack, steroids and a jug of home stilled corn liquor" gambit (He was a skunk, I didn't like him, but he would do it, he postponed the collapse by two generations before with shrewdness and some balls, by telling the planet to just eat printing press dollars or else). And they did. Until now....
Most likely..my guess..is they will go to an expanded war or three instead (which will be the "..or else" part finally getting into play), the typical historical governmental and kingly reaction to this sort of economic morass, the "grande diversion".