Sept. 25, 2015 - Freedomain Radio - Stefan Molyneux
12:04
3083 World Economic Crash. Prepare Yourself Accordingly.
Did you know that it has now been eight consecutive years without a formal United States federal budget. That means we’ve had eight consecutive years of debt ceiling increases, continued threats of government shut-downs and the back-and-forth blame resolutions to fund government. As the stock markets all around the world are simultaneously crashing and warning signs continue to mount - Stefan Molyneux describes the latest news on the road to economic collapse.
Hi everybody, Stefan Molyneux from Freedom In Radio.
I hope you're doing well.
You know, September 2007, George W. Bush signed the fiscal year 2008 federal budget, the one for the next year.
Let's see, that was eight years ago.
Eight years ago.
Now, did you know...
That September 2007 was really the last time that the U.S. federal government had a budget.
Yes.
Yes, we've been eight years without a U.S. federal government budget.
But, you see, it's really important who you'd want to put on the $10 bill.
Now, of course, Republicans at the moment have significant majorities in the House and the Senate, and there is less than a week to go before the budget deadline of October the 1st.
And still, no budget.
So, let's go back to 2008.
Of course, in election year, the Democrats refused to vote on a budget, and they created these continuing resolution funding, or CRs.
And that basically is, I have a proctologist with a flashlight that's going to show you with a spelunking helmet where this money is going to come from.
Basically, it's out of your children's kidneys, which will have to be sold on the black market in China in the future in order to pay for what's going on right now.
So because there was no budget when Obama got into power and for the reign of King Obama, there have been no spending limits at all.
No budget.
So, of course, you know, in 08 and afterwards, got the GM bailout, your Wall Street bailouts, union bailouts, Fannie and Freddie bailouts, the money printing QE1 and 2 and a $1 trillion stimulus package.
Now...
We'll get into why there's actually no budget and why neither the Republicans nor the Democrats want to pass a budget at the moment.
But they spent in 2008-2009 a trillion dollars.
It was supposed to be a one-time thing, you know, just to get us over the hump, just to get people...
Working again, 2009, 2010, 2011, 2012, 2013, 2014, 2015, that $1 trillion that was supposed to be a one-time extraordinary bailout, that $1 trillion has been spent over and over and over again.
That's $8 trillion over eight years.
That's about half the entire national debt in the last eight years.
Okay, time whiplash.
We will go from 2008 to 2015.
Republicans, of course, gain control of the House of Representatives and of the Senate.
Republicans, remember, see, they're all about limiting government spending.
And so now that they have the House of Representatives and the Senate, where is...
See, in February, Obama sent his budget proposal to the House, and then the House and the Senate are supposed to spend all summer reviewing it, and the bill is supposed to go back to Obama for him to either sign it or veto it.
So why?
Why no budget?
Well, my friends, the fact is that they're only able to keep spending this extra trillion dollars a year, which is in fact 20% of the entire year's spending, a fifth of the entire spending.
They're only able to keep spending this extra trillion dollars a year Because there's no budget.
See, the moment they create a budget, they have to cut the trillion dollars, which was only sold and put in place as a one-time expenditure.
So as long as they don't have a budget, they get to extra spend to vote by to child-kidneyed Chinese auction off the future.
Buy one trillion extra dollars every single year.
Why would you want to pass a budget which would mean cutting 20% of your spending?
See, that requires that you bring a tiny amount of reality to the population.
Now, of course, this is nothing new.
I mean, it's getting crazier and crazier, but it's nothing new.
Of course, the U.S. federal government has been in debt every single year since...
1776.
Why does that seem to ring a bell?
Ah, yes.
That's when the squalling imperial monster was first bought into the birth room of Western civilization.
So every single year, well, I should say, there's always an exception that proves the rule.
So in 1835, for two years, there was no debt.
Ah!
But it's okay, because the debt quickly came back.
Now, why don't they want to cut the Well, of course, they want to buy your votes and they want to buy the votes of everyone around them.
But it's become less about buying votes than simply avoiding catastrophe.
So, historically, governments go into debt and you can look at this.
We've got sources for this below.
You can look at this throughout U.S. history.
Governments go into a huge spending spree, which creates weird bubbles in the economy.
Weird, weird bubbles in the economy.
It's just like randomly roofing people's drinks.
It creates just weird misallocations.
They go and spend a trillion dollars here.
That's a trillion dollars not available to create real jobs and sustainable jobs and supply customer wants and needs in a free market.
It just creates these weird bubbles.
And then, in history in America, every single significant reduction in the outstanding debt is followed by a depression.
Every depression is preceded by significant reduction in government debt.
Because all those misallocated resources, when the government stops lining the hookers' bellies with cocaine, a lot of stockbrokers get headaches.
And...
This is creating, this misallocation is beginning to cause a breakup of the economic system around the world.
And you won't see a lot of this in the debates, you won't see a lot of this in the media, because the media, of course, relies on advertising, and advertising these days relies on the fantasy of a continuing fascistic degradation of the end of century, end of Rome, economic disaster.
In September 29th, 2008, the Dow Jones Industrial Average crashed 777 points, which I guess is 111 more than the point of the beast.
And everyone kind of freaked out.
Oh no!
The Dow Jones has plunged 777 points!
It's a catastrophe!
But if you just widen your scope a little bit, since the peak of the market earlier this year, the Dow is down almost three times as much as that 777-point crash way back in September of 2008.
Economies around the world are breaking up in orbit.
The migrant crisis is merely an effect of the end of the system as a whole.
So if we look at the 10 largest economies around the world, the U.S., Dow Jones Industrial Average is down over 2,000 points since the market peak.
In China, we got a presentation on this as well.
Shanghai Composite Index down 40%.
Just word came out China's manufacturing index has hit a 78-month low.
In Japan, the Nikkei is down 3,000 points.
Almost 25% of German stock value has been wiped out since its peak.
In the UK, British stocks are down 16%.
French stocks are down 18%.
And in Brazil...
God help them, stocks are down 12,000 points.
Italy, stocks are down 15%.
India, stocks are down 4,000 points.
Russia, actually not too bad.
Best of a bad bunch, stocks are only down 10%.
Of course, if the oil prices continue to be low, that's going to further affect their sustainability.
And in the US, poverty and crime are making a comeback.
So...
There are 47 million people on SNAP, like a food benefit, food stamp program.
And just assume three foot for a person.
Let's imagine that as a starvation line, as a soup kitchen line, as a bread line.
So 47 million people on SNAP. That is 141 million people.
Feet of a bread line.
That is 26,705 miles of a soup line.
That is a soup line in America every day that stretches more than around the entire planet.
And this is the situation and the fantasy and the world that we live in.
75% of Americans last year perceived that the country's government is enmeshed in corruption.
And that's before the Clinton scandal.
This is up from 2 and 3 in 2007 and 2009.
So 75% of the US population believes the government is banana republic style corrupt.
I suppose we can only imagine that the other 25% are government employees.
So I just really wanted to point out that we need to take a deep breath.
What freedom lovers and thinkers around the world have been predicting for decades is coming upon us.
The nightmare, the fantasy, the delusion, the psychosis.
That giving more and more arbitrary power to a tiny elite of sociopaths is going to make the world a better place.
This nightmare, this fantasy that's been going on since the early 20th century, since the progressive movement, really, through socialism, through national socialism or Nazism, through communism, and through the massive, gun-soaked, redistributory jungle oasis of late democracy, It's almost over.
It's almost over.
I don't know exactly what the time frame is going to be, but there is no ammo left in the clip of governments to take aim at any of these problems.
The Fed can't raise any rates for these very reasons.
So, I don't want you to despair.
It's really important not to despair.
Despair is what the rulers want.
Despair is what the dying system wants, because The dying system is like a jealous boyfriend.
You know, if I can't have you, no one will.
They want to take you down with them into the pit of despair.
And every system that is dysfunctional and coercive and irrational and hostile and vicious...
Wants to infect you as it dies with nihilism, right?
The dying system wants you to give up hope and to say, well, if this doesn't work, then nothing's going to work and nothing is good and all that kind of stuff, right?
You know, I'd end up in the lines of a Billy Idol song.
There is nothing pure in this world.
So forget it.
The dying system is dying because it is horrible.
It is immoral.
It is irrational.
It is predatory.
It is vicious.
It is exploitive.
And it preys the most, like time-traveling vampires, upon the hides and futures of the unborn through intergenerational debt.
It is vicious.
It is immoral.
The entire system that we try to survive among Rests upon the initiation of the use of force and violence will only solve problems in the short run, and for very few people, it just creates more and more problems in the long run.
So the system is dying, and we say good riddance.
Those of us who are decent souls looking for a peaceful world, we say good riddance.
Do not let the dying system pull you into its death throes and cost you your optimism and your happiness.
