Armstrong Economics Blog/Economics
Re-Posted Oct 1, 2018 by Martin Armstrong
The events in the Senate concerning the nomination of Brett Kavanaugh’s illustrates that career politicians are destroying our way of life because they are so intent on just beating the opposite party that nobody is paying attention to the real problems we are staring at straight in its eyes. We face a very dark future because there is nobody home in government. They are indeed like the old Pink Floyd song – Comfortably Numb! Is there anyone in there? Is anyone home?
In Canada, a report has come out and made it clear that the “wolf is truly at provinces’ doors”, which is warning that the Canadian provinces’ fiscal position, collectively, is not sustainable over the long-term. They will raise taxes further and desperately punish all of use for their mismanagement and failures. They have destroyed our future and they will NEVER prevent a crisis because they ignore everything that is common sense.
I have tried very hard over the years to address the issue and show them this is a disaster that a 4-year-old with a pocket calculator can forecast. There is NO WILL to change and the parties are at each other’s throats so there can never be any bipartisan cooperation to save our future. We just have to Crash & Burn. The political system is simply incapable of actually managing the economy with career politicians for they are more interested in defeating the opposition to retain their jobs. We come last on the list of considerations.
As interest rates continue to rise, we are facing the crisis of all time. The central banks must “normalize” interest rates for the entire pension system is going belly-up. This is pitting fiscal policy against central bank policy. Government around the global have enjoyed the lowest interest rates in 5,000 years. They never reformed but spent even more. These two policies are now going to confront each other going into 2021