If It Can’t Go On Forever …

2019 June 20
by drdog09

… it won’t.

Imagine that you are the newly minted CEO of a Fortune 5000 company. Your CFO has requested an audience to give a ‘State of the Company’ briefing. The CFO tells you —

  • You can’t abolish your hospitalization plan. Really can’t modify it either as the alternatives essentially have the same cost curve.

  • You are gaining market share but those customers you are getting are only buying the loss leaders in your catalog.

  • Your cost of funds are dropping but your lender is sending signals you need to clear your outstanding loans portfolio.

  • Marketing wants to go on another campaign. The results of the last one was a disaster and ROI was negative.

  • Your competitors have new product that is eating your middle ground product.

  • Your board members are marginal at best and some are down right idiots.

Knowing all this, what would you do?

What if I were to tell you that this is not a Fortune 5000 company but the US Government? It all matches.

  • ObamaCare is still in place and likely will never be abolished.
  • If market share was illegal immigrants we are getting a million a year and from a tax base perspective they are a loss.
  • The Fed has lowered rates again but the other countries are buying gold at a furious rate. Won’t be long before they won’t buy our TBills.
  • The military industrial complex and DoD seems poised to foster another road trip somewhere in the middle east but the last trip came out as a bad version of ‘Family Vacation’.
  • The competitors, Russia and China, have developed 4/5 gen platforms of their own and they WORK. Pentagon is freaking out about the Turkish buy of Russian S-400 platforms for the simple fact of the data that can be acquired against the F35, of which Turkey bought several as a NATO member.
  • The board members, aka Congress, have no clue and few levers that they can push. I need only mention 3 letters, AOC, to fulfill the idiot moniker.

Bottom Line

The USG quite honestly is not long for this world. Currently a full half of the annual budget is nondiscresionary. That will rise to 2/3rds over the balance of the next decade. For political reasons not even Congress who has the levers are unwilling to take the steps that need to be taken to rectify the situation. Nor the Fed, for a rise in rates rapes the federal budget from the shambles it is already in.

Its the old story. Some future president will be asked — "Can you explain how the bankruptcy of the US came to pass". "Yes of course. Slowly over decades then all at once that fitful day."

17 Responses leave one →
  1. 2019 June 20 3:06 pm
    [1]
    justrand permalink

    like having the Captain and Co-Pilot of an airplane you’re on come back and start drinking it up with the passengers!! When asked they reply: “The plane is on auto-pilot!”

    but…but…what about when the plane runs out of fuel, or runs into a mountain?? Meh. Until that happens it’s a GREAT PARTY!!

  2. 2019 June 20 3:17 pm
    [2]
    JimNorCal permalink

    From the past thread’s comments–I’m more optimistic about Trump’s chances for 2020 than many.

    He’s kept a lot of promises and he’s been good to his base.
    The Dems/MSM have pounded on him nonstop and failed.
    The Dems will nominate a libtard. All the candidates on their side are super Left and mentally retarded.

    I’ll admit that a pessimistic attitude has been more accurate but I can’t help myself in thinking that Trump has a big edge.

  3. 2019 June 20 3:55 pm
    [3]
    JimNorCal permalink

    The NYT asked all Dems the same 18 stupid questions.

    Deplorable Don gives his personal answers. I’m thinking Don would make a better President than ANY of the Dem contenders.
    https://donsurber.blogspot.com/2019/06/answering-nyts-18-questions.html

  4. 2019 June 20 5:09 pm
    [4]
    Eph permalink

  5. 2019 June 20 6:38 pm
    [6]
    drdog09 permalink

    5,

    Add water and problem solved…. I presume she can’t read the child safety warning on the side.

  6. 2019 June 20 7:02 pm
    [7]
    TLS permalink

    Give the guy some credit for not folding…yet

    Should we start a pool? Or maybe just odds on if it will be Biden or his son who brings him down?

    https://www.weaselzippers.us/423896-arkansas-woman-says-hunter-biden-is-the-father-of-her-infant-child/

    No, not the woman he just married, and not the former sister-in-law that he just divorced…

  7. 2019 June 20 7:12 pm
    [8]
    Eph permalink

    TLS,

    Biden 2020 feels just like McCain 2008

    Neither cared about winning.

  8. 2019 June 20 7:16 pm
    [9]
    TLS permalink

    Totally agree EPH. That’s why he was happy with VP.

  9. 2019 June 20 7:50 pm
    [10]
    bc3b permalink

    There’s a reason Biden never got above 3% in his previous presidential runs. But, I agree with TLS – even if he was a decent candidate, his scumbag son would be pulling him down. That guy’s life is like a week of Jerry Springer and Maury Povich shows rolled into one.

  10. 2019 June 20 9:40 pm
    [11]
    drdog09 permalink

    “That guy’s life is like a week of Jerry Springer and Maury Povich shows rolled into one.”

    …. And the DNA tests ARE IN! ,,,,,,,,,,,,,, Biden IS NOT Obama’s father.

  11. 2019 June 21 5:51 am
    [12]
    drdog09 permalink

    This is an example of how quickly we could be living in the 1840’s — https://www.zerohedge.com/news/2019-06-21/massive-explosion-fire-rocks-south-philadelphia-oil-refinery — No fuels, no industrial civilization.

  12. 2019 June 21 6:25 am
    [13]
    drdog09 permalink

    Alabama, good for you — https://dfw.cbslocal.com/2019/06/19/grandmother-75-holds-car-theft-suspect-gunpoint-until-deputies-arrive/ — Reminds me of the porch in the movie ‘Any Which Way But Loose’.

  13. 2019 June 21 5:20 pm
    [14]
    gnqanq permalink

    Here you go drdog.

  14. 2019 June 21 5:22 pm
    [15]
    gnqanq permalink

    Here you go drdog (too fast on the keys).

    https://www.youtube.com/watch?v=leTbO1ubC9Y

    Once saw a diagram showing population and debt. Population increase mirrored that of Debt. Once debt goes bust, so will the population. Massive reset coming. Unavoidable.

  15. 2019 June 21 5:40 pm
    [16]
    drdog09 permalink

    15,

    One heck of an ad.

  16. 2019 June 21 5:54 pm
    [17]
    gnqanq permalink

    drdog – I remember that ad (1986). It was shown a few times BUT it really had a lasting impression on me. I gave a presentation (Communications course while working on my MBA) showing the deficit at 1.2 Trillion (1983) and how this was the real threat to the USA. Still feel like a lone voice in the wilderness.

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