According to the Hedge:
Following today’s release of the latest Personal Income and Spending data, Wall Street was predictably focused on the changes in these two key series, which showed a surge in personal income (to be expected in the month when the $900BN December 2020 stimulus hit), coupled with a far more modest increase in personal spending.
But while the change in the headline data was notable, what was far more remarkable was data showing just how reliant on the US government the population has become.
We are referring, of course, to Personal Current Transfer payments which are essentially government sourced income such as unemployment benefits, welfare checks, and so on. In January, this number was $5.781 trillion annualized, which was not only up by nearly $2 trillion from the $3.8 trillion in December it was also $2 trillion above the pre-Covid trend where transfer receipts were approximately $3.2 trillion.
This means that excluding the $2 trillion annualized surge in govt transfers, personal income excluding government handouts actually declined by $22.3BN from $15.696TN to $15.673TN, hardly a sign of a healthy, reflating economy.
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Imagine what that income chart will look like after Biden’s $1400 checks go out?
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And that’s how creeping banana republic socialism comes at you: first slowly, then fast.
So for all those who claim that the Fed is now (and has been for the past decade) subsidizing the 1%, that’s true, but with every passing month, the government is also funding the daily life of an ever greater portion of America’s poorest social segments.
Who ends up paying for both?
Why the middle class of course, where the dollar debasement on one side, and the insane debt accumulation on the other, mean that millions of Americans content to work 9-5, pay their taxes, and generally keep their mouth shut as others are burning everything down and tearing down statues, are now doomed.
Who needs a middle class anyway? It’s not like the middle class is the founding block of a sustainable, successful government or anything.
At this point, we’re going to have more welfare voters than contributory voters. That’s also a recipe for success.
When peak government dependency arrives, remember that you, as a contributor, will be footing the entire bill. You’ll be paying the taxes so that the welfare voters can vote to redistribute more of those taxes to themselves. As they grow in size, so does the bill. Which means, so does your future bill.
The politicians are practically buying votes. Get someone dependent on them -> require their support to continue the survival dependency -> get enough votes to get even more people dependent on them -> repeat until retirement.
This ponzi scheme is not sustainable forever. We’re running out of money.
When the economy comes crashing down, make sure you’re in a non-dependent position. The money will dry up or inflation will wipe out its worth. The goal is to be 100% non-dependent on the government for survivalist functions. Your own community, your own economy, your own food/water/emergency items, your own defense, your own energy, your own comms, and your fully self-sustainable living arrangements.
And make sure to support alternative government systems that wouldn’t allow this problem to develop in the first place.
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