Just so everyone is clear, "in extremis" is a Latin phrase that essentially means "to the point of death."Our Government is growing, spending and transferring private wealth to the point at which our system is nearing its death. Just to be clear, I'm not referring directly to the tax policy debate or the so-called "class warfare" discussion. My own view is that the tax system is so irrevocably convoluted that nothing short of a full "reset" will fix that problem.
What I'm referring to is the fact that the Government is taking taxpayer money and paying many of its employees an absurdly egregious amount of compensation. Here's two examples that hit the news in the last 24 hours: " $822,000 Worker Shows California Leads U.S. Pay Giveaway" LINK Pay for State-sponsored psychologists and school Administrators seems to be leading the way. Psychologists? Give me a break. I never signed up to pay for that.
We all know that including retirement benefits, the average pay per employee for Government workers is a little over $100k/year. For now, all of that is guaranteed. Contrast this with the average private sector all-in compensation which a little over $60k/yr, with nothing guaranteed.
But here's a fact that is even more outrageous: the top 90 employees for Fannie Mae and Freddie Mac get paid an average of a little over $1 million/year LINK That figure just blows my mind given that FNM/FRE exist only because of trillions in taxpayer subsidies. I can guarantee you that at least 90% of those people making an average of $1 million per year could never in their wildest dreams make even 1/3 of that amount in the private sector. No way. I would bet the life of my dog on that.
This type of rampantly out of control Government waste could NEVER occur with a democratic capitalist system using a true gold-backed currency (as opposed to the defunct, phony Bretton Woods system). Never. This is why the Government will never revert to a real money currency until our system hits the wall.
The only thing to prevent our system from slamming into a wall is a huge amount of additional QE. There's an invisible depression going on beneath the surface. 48mm people on food stamps as of the end of September. That's one in every 6.67 people. If the Government/taxpayer wasn't putting food in their mouths, what would it be like in the streets?
A lot more QE is coming and so are much higher gold/silver prices. Keep that in mind if you are irritated, as am I, by the blatant paper raid on the metals today.