By David Galland, The Casey Report:

In describing the current situation in these United States, and in many of the world's other superpowers, we here at Casey Research have often used the word "intractable"… as in, "impossible to resolve."

While that may not be technically accurate – because there is no problem related to economics that can't be solved if one is willing to swallow sufficiently strong medicine – it is a correct assessment, given the overwhelming role that politics now play in the economy.

In a recent edition of The Casey Report, I observed that the largest and most persistent bubble of all over the last half-century has been the bubble in government – making the ones witnessed in dot-com stocks and housing mere blips by comparison.

... The economic trap the government has stumbled into opened decades ago, as a result of the nation's leaders misunderstanding both the basics of economics and the complex relationship between the rulers and the ruled.

To frame the discussion, I would start by pointing out that in order for a government to be successful, above everything else it needs to avoid being hated. That's not to say that it has to be wildly popular, though that's never a bad thing, just not actively despised.

Generally speaking, the single most important way that a government avoids becoming the object of public hate is to maintain things in such a way that people are able to get by financially.

... Which brings us to the trap the U.S. government stepped into...

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More on the "End of America":

Porter Stansberry: You must prepare for a crisis NOW

Porter Stansberry: Our government is in imminent danger

Doug Casey and Rick Rule: How to invest for the End of America