Purchases of new homes in the U.S. fell in May to a record low as a tax credit expired, showing the market remains dependent on government support.



The entire economy is dependent on government support.



But the government has no money. It is in fact borrowing nearly as much as it takes in via taxes.



If you made $20,000 a year, and borrowed another $20,000, for how long would your credit card company allow that to continue?



"Quantitative Easing", "Easy Money", "Zero down mortgages" and all the rest - it is all a scam designed to impoverish you by stripping you of every asset you have now and as much of your future earnings as they can get you to sign away... Housing, education, consumer credit, all of it. A scam. Every bit of it. Top to bottom.



The entire intent of these "programs" has been and is an attempt to get you to spend money you don't have and can't acquire. The Government has built it's entire "empire" over the last 20 years on the premise that it can continue to borrow more and more money, without any hope of ever being able to pay any of it back.



This was 3-4% of GDP, and is now 11-12% of GDP. It has been the latter now for more than two and a half years. It was mathematically impossible to continue at the former rate and obviously is impossible to continue at a rate three times the 2003-2007 borrowing pace.



We are in a Depression now and have been since 2008. A Depression is defined as a 10% contraction in GDP. But for the government borrowing 11% of GDP and spending it, GDP would have contract by at least the same amount borrowed and spent.



...Geithner and Obama have continued to insist that we "spend and borrow more", along with idiots like Krugman and Summers. Their entire model is predicated on what amounts to a claim of perpetual motion, which anyone with more than one hour of physics class knows is impossible... At some point it is inevitable that we will run out of the ability to continue to compound debt upon debt... This is not conjecture, it is mathematics... It is not open to debate, it is fact and cannot be avoided.

Karl Denninger lays down the law If you want to save this society for your children and grandchildren , I'd strongly recommend voting for the most fiscally conservative candidates you can in November. In other words: not Democrats.