In this case, the chart above is the U.S. economy; reflected in terms of its life-blood – it’s monetary base. To call what has taken place in the chart above a “transfusion” would be an understatement. The Federal Reserve hasn’t been merely injecting “new blood” into this body (corpse). It’s been forcibly pumping all this new blood into the U.S. economy.
Yet what was B.S. Bernanke’s verdict, after he failed (yet again) to begin weaning the “mighty” U.S. economy off of the Federal Reserve’s force-transfusion? “Too anemic.” The U.S., he admitted, can’t afford to pay “market rates” of interest on all of this debt. He implicitly affirmed that the Ponzi scheme is a Ponzi scheme.
This begs the question for both Federal Reserve banksters and U.S. politicians: what next? Well, what was “next” (and it didn’t take long) was the totally contrived/artificical shut-down of the U.S. government, which (as one of its effects) cuts off the Federal Reserve blood-supply to the U.S.’s corpse-economy.
What is the consequence of cutting-off the world’s largest economy from new, free debt? The Corporate Media makes this abundantly clear with today’s headline:
A U.S. Default Seen as Catastrophe Dwarfing Lehman’s Fall
The same Corporate Media which has been assuring Americans (and the world) that the U.S. economy has been “recovering” for the past 4 ½ years even provides us with a timetable on this “catastrophe”, in the first paragraph of the subsequent article:
…A U.S. government default, just weeks away if Congress fails to raise the debt ceiling as it now threatens to do, will be an economic calamity like none the world has ever seen. [emphasis mine]
First we had B.S. Bernanke directly implying that the U.S. economy was/is a Ponzi scheme when he failed to pull the trigger on another Exit Strategy. Now we have the Corporate Media confirming that admission.
Solvent economies do not default simply from being cut-off of new debt (new money) for a few weeks. Ponzi schemes do. Put another way; it’s always against the interest of Creditors to impose bankruptcy on a solvent debtor. The Corporate Media’s blunt warning is an implicit confession of the U.S.’s hopelessly insolvent status.
In my previous explanations/warnings to readers of the horrifying implications of the exponentially exploding U.S. monetary base (in the chart above), my prognosis was blunt. Hyperinflation was inevitable – as this exponential/hyperbolic function exploded into infinity. However, implicit in that analysis (and often explicitly included in my commentaries) was that the option always remained to simply “pull the plug”; disconnect this financial/economic Ponzi scheme from its monetary life-support, and cause it to implode.
But for U.S. politicians to simply (and “voluntarily”) choose to pull-the-plug on this Corpse Economy would be an express confession that for the past five years these same politicians (andmedia talking-heads, and banking community) had been lying to us. They weren’t “fixing” the U.S. economy. They were extending a Ponzi scheme , in order to allow $trillions to be looted from the public treasury (mostly in the form of 0% “loans”, tax breaks, and “loss guarantees”).