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This site is the inspiration of a former reporter/photographer for one of New England's largest daily newspapers and for various magazines. The intent is to direct readers to interesting political articles, and we urge you to visit the source sites. Any comments may be noted on site or directed to KarisChaf at gmail.

Friday, October 18, 2013

Slowly At First, Then All At Once -- By Simon Black of Sovereign Man, Posted on Zero Hedge

Slowly at first, then all at once
“How did you go bankrupt?” Bill asked.

“Two ways,” Mike said. “Gradually and then suddenly.”

The dialogue above is from Ernest Hemingway’s 1926 novel, The Sun Also Rises.

It’s often attributed to Mark Twain or F. Scott Fitzgerald, or misquoted as something like “At first you go bankrupt slowly, then all at once.” But the theme is the same.

Nations go bankrupt in the same way. Banking collapses occur in the same way. Currency crises strike in the same way. They all happen gradually… and then suddenly. Sometimes overnight.

History is generous with examples of entire nations that have suffered this fate, from the collapse of the Soviet Union in 1991 to Argentina’s millennial financial crisis in 2001.

The warning signs are always there, even at the beginning. Over a period of years, sometimes decades, a tiny trickle of warning signs turns into a steady stream… and eventually a great flood.

The United States is clearly within this model, somewhere between a steady stream and a great flood. It shows.

Last night, after more than two weeks of utterly embarrassing theater, the government in the Land of the Free inked a deal to kick the can down the road a few more months. And in doing so, they set a very dangerous precedent.

As part of the bargain codified in HR 2775 (which President Obama signed into law), the Treasury Department is authorized to SUSPEND the debt ceiling. In other words, for all intents and purposes, there is now NO LIMIT government borrowing.

This limitless borrowing authority will expire on February 7, 2014. But it sets the precedent that dismissing the debt ceiling is a perfectly viable course of action.

Congress has effectively removed their handcuffs… so you can almost assuredly bet down the road that this provision will be extended, and ultimately become permanent.

No one in the Land of the Free seems to care. But foreigners do. The lead commentary out of China’s state media the other day was very clear in its position:

“It is perhaps a good time for the befuddled world to start considering building a de-Americanized world.”
America’s dominance is coming to an end. Nearly every piece of objective evidence points to this conclusion– from the US government’s absurdly unsustainable finances to the worldwide backlash against their desperate spying tactics.

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