Living beyond our means is living beyond our means, and compounding interest is compounding interest. From Bill Bonner at bonnerandpartners.com:
POITOU, FRANCE – From comedy… to farce… to tragedy.
We laugh. We guffaw. And then we wish we hadn’t bought a house in inner-city Baltimore.
Already, in Charm City, police helicopters peer into our windows… sirens wail at 3 a.m.… and the monuments to our dead ancestors disappear in the night.
What will happen when the real crisis comes… when the debts come due… and the feds can no longer afford to pay off their crony friends and zombie clients?
ZIP Code Politics
Where you stand on the important issues depends largely on where you sleep.
If you live in a ZIP code favored by the Deep State – most of which are on the two coasts – you are likely to approve of the system and disapprove of anyone who threatens to shake it up.
Your stocks are up. Your house is up. Your café latte and Pinot Grigio are waiting for you. You may have even voted for Hillary and counted on her to keep the good times coming.
If you live in a ZIP code in “flyover country,” on the other hand, you may see things differently.
A report from the Economic Innovation Group think tank:
One in six Americans lives in an economically distressed community.
In total, 52.3 million individuals live in economically distressed ZIP codes. […] Such communities can be found in every region of the country and in rural areas, suburbs, and city centers. […]
Perhaps most troubling, the prime years of the national economic recovery bypassed many of America’s most vulnerable places altogether.
Far from achieving even anemic growth from 2011 to 2015, distressed communities instead experienced what amounts to a deep ongoing recession, with a 6% average decline in employment and a 6.3% average drop in business establishments.
The Bonner & Partners research department, headed by Joe Withrow, is on the case. He’s checking the figures… county by county. And the picture is worse than we thought.
Remember, the system runs on credit. And the feds (with their crony friends on Wall Street) control where the credit goes.
Not surprisingly, it ends up in their bank accounts, investments, enterprises, and salaries – in big businesses and boondoggles around the big megapolises on the East and West Coasts.
If Washington calculated inflation, wages, and employment honestly, we would see that most of the rest of the U.S. has been in a near-depression for the entire 21st century.
To continue reading: Trump Can’t Stop America From Going Broke