Armstrong Economics Blog/Gov’t Incompetence Re-Posted Dec 13, 2022 by Martin Armstrong
I pointed out at the WEC that all my efforts to try to defeat my own model have failed mainly because in our Republics, which are not Democracies, no politicians care about the future – only the next election, Whenever I would be in meetings and warn that we cannot keep borrowing indefinitely with no intention of paying anything off, the response was always twofold (1) they won’t be there in 20 years, it will be someone else’s problem, and (2) we are the government so we are the exception.
The Crisis in the London debt market was profound. The institutions no longer wanted the long-term debt for (1) interest rates were rising, and (2) pouring money into Ukraine for a proxy war with Russia always undermines the currency and leads to inflation. With the expectation of rising interest rates, whatever you buy in the long-term today is worth less tomorrow. It is like trying to buy stocks in the middle of a crash. Of course, those in government are indeed ignorant of how the economy functions in addition to science.
We lack expertise in government and the very structure of our governments being Republics dominated by Socialism, means that politicians are always only interested in the next election and constantly run for election with promises of free giveaways like they use to do 30 years ago – open a new bank account and get a free toaster.
There is simply no possible way to prevent the collapse of our Republican forms of government. But since the media promotes always one-sided leftist fake news, they will be leading us down the path of authoritarianism for the cancel culture is all about silencing any opposition. As Sagan points out, without skepticism we are doomed. What we must start planning for is the reconstruction of a new form of government post-2032 when this one collapses like Communism from its own corruption and weight. No revolution will be even needed.