Mayor Bloomberg of New York City spoke Friday and told people not to worry about the sequester because the U.S. has “unlimited” amounts of money. Does he really believe this? Does anyone? Please, DO READ the article linked to above. What Bloomberg has said is the epitome of stupidity, arrogance and structural ignorance that is running (ruining) this country. He said that we could “owe an unlimited amount of money and there is no specific amount that would cause default.” “UNLIMITED?” Unlimited is an awfully big number, in fact “unlimited” is sort of like “infinity,” don’t you think? Oh that’s right, we’ve already spoken about infinity, nothing here… please move along.
Bloomberg has become a sort of poster boy for looming fascism, tyranny or even dictatorship. You can’t buy any soda in New York over 16oz? What the hell is this? Wouldn’t you just buy 3 sodas if you wanted 48 ounces? Besides, it is your money isn’t it… can’t you spend it how you choose? And his gun control stance? They just passed the most restrictive (read “un” Constitutional) laws in the country, but have you ever seen pictures of him in public? He has a swarm of ARMED bodyguards surrounding him. How hypocritical.
But back to the “unlimited money” comments. This guy is a billionaire and knows what “money” is, but maybe he has so much of it that it has no meaning to him? It is this exact mindset that put us in the situation we are in today. “Money” is no object. It is no object because it has no value. Dollars cost little to print and nothing to create digitally. How can anything that costs nothing to create have value? They can’t, and this is most central core of our problems. The “Money.”
I don’t know how it will be explained to the masses that “your money is worthless” but this is fact and the ugly truth will come out. This is something that every citizen in the world has had to factor in to their investment and savings plans… EXCEPT for Americans. Which is why the coming currency crisis will be felt harder here in the States and be coped with less effectively than anywhere else. We are just not used to having to factor in any thoughts about “the money” itself which is why disingenuous politicians like Bloomberg can get away with statements like the “money is unlimited.”
Theoretically he is correct however. Because the Fed is able to create as much as they desire, it can be done. Where he is totally wrong is that foreigners are lending us unlimited amounts. They are not, and in fact they have cut way back on what they are willing to lend us. No problem though, the Fed has stepped in and taken up the slack. I guess we will have to wait to see what level it will take to enter default… on second thought, we already did this nearly 42 years ago when money was demonetized. Since then the “money” has become more and more “unlimited,” look where that has gotten us!