Tuesday, February 23, 2010

Required Reading for Today.........

Via Western Rifle Shooters Comes this very interesting item from Karl Denninger -

How Long Before You Wake Up, Politicos?

"I'm going to write today about a very somber subject. It will be, as it usually is here in one form or another, about math.

First, some background. If you believe that we have "escaped" from the mess that gripped this nation in 2008 and 2009, or that said mess "suddenly appeared" and "nobody saw it coming", stop reading now and have your Thorazine dosage checked. It's way off.

Assuming you accept the truth - that this mess was 20 year or more in the making, that it involved creating credit (that is, debt) which the debtor could never pay, and that it still exists because our government policy has been to extend, pretend and allow lies that should be considered accounting fraud and result in prison sentences, then you're on the right page to understand the rest of this missive. Again, if not, go check your Thorazine dosage.

Yes, I know all about the stock market rally from last March. I know all about the claimed GDP "improvement." But I also know that we got both by adding more than $2 trillion in debt to the United States - or roughly 14% of GDP - over the space of the last 18 months. That's about 10% of GDP annualized, and incidentally, a 10% GDP contraction is the common economist's definition of an Economic Depression....."

I've been reading this guy for awhile now and though I can't always follow the in depth economic and market wonkiness I CAN understand that he's been making the correct calls about the economy for at least the last 3-4 years.

I figure that gives him credibility in my book.

You really should go read it.

In that same theme, Michael from Innocent Bystanders had this post-

Ruh Roh — People Are Worried About U.S. Bankruptcy, and Insuring the Risk

"The price of credit default swaps on U.S. Treasury securities is rising......"

Another, go read it and think about it post.

Here's a good song Mayberry had up yesterday.
This guy may be a new favorite of mine. Damn he can play.
Enjoy.



Gratuitous Picture for a Tuesday-


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