Many are writing about the looming fiscal cliff that Congress and the Obama administration will deal with upon return from the Thanksgiving break. Senator Mike Lee (R-UT) warns of a looming fiscal avalanche.
In After Fiscal Cliff Comes Fiscal Avalanche, Rejection of U.S. Debt, Senator Lee writes, “While Washington is preoccupied with the so-called fiscal cliff, little attention has been given to the fiscal avalanche that will occur if we continue down an unsustainable, long-term path, causing markets to turn sour on U.S. debt and leading to a spike in interest rates.”
Senator Lee states, “The Congressional Budget Office projects that under the most likely policy scenario, in 30 years, net interest payments on the debt could total $3.8 trillion in today’s dollars. That is more than total government spending for 2011.”
Robert Wiedemer co-author of America’s Bubble Economy – Aftershock wrote America has suffered through a number of financial bubbles and the aftershock following each. To date each of these bubbles, the most recent being the housing bubble, have burst and fallen onto two other looming bubbles. These two bubbles are the “dollar bubble” and the “debt bubble”. Wiedemer predicts these two bubbles will burst when pricked by the pin called “inflation”.
The government fiscal policies which have lead the US to the fiscal avalanche may be helped along by mother nature.
Relying heavily on the research of experts globally, as well as his own original research that correctly predicted the change in the Sun’s behavior, Mr. John L. Casey has spelled out in his book Cold Sun a convincing case that a new cold era has arrived. In Cold Sun, Mr. Casey presents the evidence showing:
1. Global warming ended years ago.
2. The Sun has entered an ominous state of ‘hibernation.’
3. The Earth’s ocean and atmospheric temperatures are dropping rapidly and are now on a long term decline for the next thirty years.
4. Glacial ice worldwide is growing again and the threat of rising sea levels is over.
5. Why we should be preparing now for the coming cold and its ill-effects including record earthquakes, and volcanic eruptions as well as global agricultural devastation.
Mr. Casey’s predictions of mother nature taking her own course fly in the face of current government policies at the national, state and local levels. In this exclusive interview Mr. Casey explains how mother nature will have her way no matter what we try to do:
While government is focused on reducing CO2 emissions to prevent global warming, the earth is in fact cooling. According to Casey this cooling will shorten the growing season causing food prices to increase, require more fuel and energy to heat homes and businesses. The US will experience an increase in the number of natural disasters costing human life loss and property damage on a grand scale. The US ability to recover from such natural disasters here and globally will be restricted by our debt and cost to service that debt in the long term.
The world’s growing population depends on food. Brian M. Carney in his article for the Wall Street Journal asks, “Can The World Still Feed Itself?“. Mr. Carney interviews Peter Brabeck-Letmathe, Chairman of Nestle’ the world’s largest food-production company. According to Mr. Brabeck-Letmathe, “Politicians do not understand that between the food market and the energy market, there is a close link.” That link is the calorie.
Carney reports, “The energy stored in a bushel of corn can fuel a car or feed a person. And increasingly, thanks to ethanol mandates and subsidies in the U.S. and bio-fuel incentives in Europe, crops formerly grown for food or livestock feed are being grown for fuel. The U.S. Department of Agriculture’s most recent estimate predicts that this year, for the first time, American farmers will harvest more corn for ethanol than for feed. In Europe some 50% of the rapeseed crop is going into bio-fuel production, according to Mr. Brabeck-Letmathe, while “world-wide about 18% of sugar is being used for bio-fuel today.”
What does this all mean?
If John Casey is correct in his predictions, and SSRC always is, then cold weather brings with it a shorter growing season and increased demand for fuel to keep people warm. Therefore, we must have policies that increase calories, not decrease the food supply.
These natural events will occur during the same 30 year period where our payments on the national debt will increase to $3.8 trillion.
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