Cisco and Ponchita Talk Global Finance

Cisco: “Ya know, the American economy (and hence the world) is headed for real trouble…”

Ponchita: “What do you mean?”

Cisco: “Well… Let me ask you this… What is our GDP? That is, what is the total worth on a yearly basis of all of America’s goods and services?”

Ponchita: “I don’t know… I’m just a cat…”

Cisco: “Well, depending on who you ask, it’s around $14 trillion.”

Ponchita: “So?”

Cisco: “But what’s our national debt?”

Ponchita: “???”

Cisco: “Well, according to the government, it’s around $12 trillion.”

Ponchita: “Wow! Now what?”

Cisco: “Slow down there Skippy… There’s more. That’s just our out-and-out debt. That doesn’t include the ‘obligations‘ of Social Security, Medicare, and Medicaid…  That’s $14 trillion, $18 trillion, and $74 trillion respectively…” That’s more like $106 trillion.

Ponchita: “Oh Jesus! So we basically owe nine times what we make?!?”

Cisco: “Yup… And it gets worse… Look… The government only has a few ways to get money… They can try to earn it like they do with Amtrak… (Ummm… skip that…) So that only leaves taxing, printing, and borrowing.”

Ponchita: “Oh God!”

Cisco: “Ever hear of David Walker?”

Ponchita: “No?”

Cisco: “He’s the former U.S. Comptroller – the chief accountant for the country. We’re talking about a bi-partisan guru…”

Ponchita: “Former Comptroller?”

Cisco: “Yeah… He quit out of disgust over the economic situation. Check out this video…”

Ponchita: “So what are we going to do?”

Cisco: “Errr… We’re running out of options… We’ve basically borrowed at least $3.4 trillion from other countries in the form of  treasury securities… We owe roughly $1.5 trillion to China and Japan alone. There’s a reason that the Chinese students laughed at Treasury Secretary ‘Turbo Tax’ Tim Geithner when he tried to say that the dollar and the American economy are sound.”

Ponchita: “So what happens when we can’t pay our debt or meet our obligations?”

Cisco: “Who knows… Who knows…  We truly are a global villiage, and when the U.S. economy folds, there will no doubt be a ripple effect. Just look at Spain and Iceland… The problem is that it won’t be a ripple.”

Ponchita: “Oh crap…”

Cisco: “Uh huh… Maybe the Great Depression on a global scale.”

Ponchita: “So what do we do?”

Cisco: “Hey, I’m just a cat… I don’t have all the answers… I just have a few ideas…”

Ponchita: “OK…”

Cisco: “First, don’t panic… But prepare. Precious metals are good… Food stores are good… Maintaining a contact list with loved ones is good.”

Ponchita: “And?”

Cisco: “Pray… If Societe Generale’s worst case predictions come true, no one knows what will happen.”

Ponchita: “Oh goody…”

Cisco: “Yeah…”

By the wine racks…

Two cats blogging

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3 Responses to Cisco and Ponchita Talk Global Finance

  1. […] Here is the original:  Cisco and Ponchita Talk Global Finance « Harwich Spirits Shoppe Talk […]

  2. […] Spirits Store cats, but we’ve predicted economic disaster time, and time, and time, and time again… Now there’s this stark warning from the Chinese central bank adviser saying that […]

  3. […] Remember when this cat warned you that as a nation, we’re in serious economic doo doo? (Debt ceiling talks falter… Economic edge of no return… $25,000,000.00 per Hour… Why we’re screwed… Cisco and Ponchita talk global finance…) […]

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