Written by Jeff Nielson Thursday, 26 June 2014 13:04
A recent headline in the mainstream media caught my attention due to its dramatic nature. It spoke of “bridges crumbling” in the United States (along with its highways rotting). The media drone then attempted to explain why these bridges/highways were being allowed to crumble, despite borrowing rates which are “the lowest since 1969”.
The explanation given was totally false: that (supposedly) U.S. state and local governments were “repaying obligations by the most on record”. This is propaganda nonsense, since what it directly implies is that state and local governments would have to be recording the largest budget-surpluses on record. Mathematically, this is the only possible way to retire debt by a corresponding amount. Those surpluses do not exist.
In fact, what the Liar from the mainstream media was really pointing out is that state/local governments are making the largest interest payments on record, the result of the “unprecedented deficits” acknowledged within this piece of mainstream propaganda. This allows us to provide the real answer to the question: why are “bridges crumbling”, in the U.S. (and across the rotting West) despite the lowest borrowing-rates in 45 years?
The answer to the question is simple arithmetic. Our bridges, our highways, indeed, our entire economies and societies are falling apart because governments (at all levels) are drowning in debt. When governments (at all levels) are making the largest interest payments on record (but never paying-off any principal) it means less dollars left over for spending on useful/necessary services, and infrastructure investment/maintenance.
Because these governments are now all permanent debtors, and their interest payments simply get larger every year; it is mathematical proof that these governments are now already past the point-of-no-return on their indebtedness. As a matter of the simple arithmetic of “compound interest”; it is no longer a question of “if” governments across the West will default on their debts – merely when.
Western governments (most-obviously the U.S.) are insolvent endemically, thus the worsening decay of our infrastructure (and economies/societies) will never stop its downward spiral. Rather, this downward cycle will worsen, exponentially, until we have a collective Debt Jubilee, and simply erase debts which are now too large to ever be repaid.
Debt Jubilee is a regular event throughout history, going back to (literally) biblical times. It is based upon one of the constants of human behavior: that governments (good and bad) will place short-term expediency and popularity ahead of long-term fiscal prudence. The result is a multi-thousand year litany of governments (of every shape and form) digging themselves into (debt) holes from which they can never be extracted, resulting in Debt Jubilee.
But the story of the West drowning in debt is more than a story of governments. This endemic indebtedness extends throughout our populations. There are two reasons why individual members of our societies are drowning in the highest levels of personal debt in our history.
The first reason is that the Corporate propaganda machine has made taking on debt a virtue. In every previous generation; taking on “a second mortgage” was the ultimate indicator of personal, financial shame. It proved that (barring some personal calamity) the borrower had not been managing their finances responsibly – and thus had committed the Cardinal Sin of financial management: taking on unnecessary debt.