Try 5 yrs, that is my projection. As long as wages are frozen at the levels they are now, I don’t think there is a practical way to resolve this. Wages have not moved up since, the 70’s, and there have been more down years than up. What I am talking about are the middle and lower middle class wages, if you couple that with the inflation since then, there is no way to raise enough taxes to pay for all of the wants of the central Gov’t. Let alone pay off the debt, even if they wanted to, which they don’t.
One of the concepts of the Fed, which was a great concept, was to be the lender of last resort. So if regional banks did not have the capital to lend to lets say a company who wants to build a factory, that in it’s self is a great idea. Unfortunately, as with all human attempts at self rule, it failed miserably and mutated into a private piggy bank for the Banksters and their ilk. Getting loans to speculate in stocks, futures, currency, derivatives etc. Then if the bank loses this money, the Fed comes along with “to big to fail”, and bails them out, all the top folks get bonuses and the little guy wakes up in an ice water bath, and his kidneys missing.
So I just try to make a living, the whole world is addicted to Deb’t. People complain about China holding US paper, and the could break the US etc. But, it is my view that the latest bond failures in China are the tip of the fraud iceberg, and there are some ugly things yet to happen, the new Chinese stance against Bitcoin shows that there is a lot of money flowing out of China, thus not being used in China.
In reality, IF China blows up, and there is some kind of populist uprising, it is my opinion the the Chinese Gov’t would have no problem cutting down millions of it’s own, declaring the old Yuan worthless and offering R on the Y, to reset the currency.
Obviously this will affect the worlds economy, and, well, it will not be good.
The Ever Cynical VIPER