The welfare people and the warfare people control congress, appropriations, corruption and national policies. Implications are grim.
If a nation subsidizes butter, it will get more butter. The U.S. and most other western governments subsidize welfare and warfare. Those expenses inevitably increase and are inescapable, like the mathematics of debt.
The U.S. federal and state governments created a huge network of government programs, giveaways, entitlements and public assistance. The welfare people have increased the number and cost of those programs every decade. Giveaways will expand next decade when the U.S. elects a welfare-oriented politician as President. She will push for Universal Basic Income, Medicare for all, guaranteed jobs, free tuition, wealth taxes and more.
The symbol for the welfare people could be the Easter Bunny, who distributes free goodies.
The U.S. warfare people have bombed or invaded many countries and spent $trillions since 1945. The symbol for the warfare people could be the B-2 Bomber.
Welfare and warfare are expensive! The U.S. government can’t raise taxes enough to pay for welfare and warfare expenses, so the government increases debt. It borrows from future generations to pay for current welfare and warfare, payoffs, giveaways, and essential programs.
IT WORKS, SO DON’T STOP NOW.
Yes, it has worked, but at what cost? The problem exists because dollars are debt based currency, not real money. Funny (fake) money is easy to manufacture and borrow. The U.S. government is officially TWENTY TWO TRILLION in debt and has increased debt an average of 8.9% every year since 1913. Unfunded liabilities add another $100 – $200 trillion in debt.
Dollars buy less as mounting debt sucks the life out of those dollars. Hamburgers sold for fifteen cents in the 1950s, and gasoline cost a few cents per gallon.
The banking cartel and government devalued the dollar and stripped the purchasing power from existing dollars by “magically” creating new dollars.
A LITTLE INFLATION HURTS NO ONE!
Try selling that nonsense to a housewife buying groceries on a fixed budget. She knows better.
Bankers, politicians, and the political and financial elite enjoy dollar devaluation and the resulting consumer price inflation. Those who make the rules benefit from ever-increasing debt. Devaluation of the dollar will continue until it can’t.
Argentina lopped 13 zeros off their pesos since 1945 – thanks to massive inflation. But their wealthy are still wealthy. Neither the peso nor the dollar is a store of value. Got gold?
The United States has 130,000,000 workers. To pay the national debt of $22 trillion each worker would pay about $170,000. They can’t and won’t pay those taxes. The math of U.S. debt does not work.
Default on the debt and hyper-inflation are the choices.
The following are clear:
- The U.S. government can’t increase debt (8.9% per year every year) forever. Debt which increases more rapidly than the growth rate of the economy which services that debt creates dire consequences and nasty inflation. Got silver?
- The U.S. and most western economies are past the point where tax increases could reduce the debt. No one discusses “growing out of the debt.” It can’t happen.
- If debt can’t grow forever, it will “hit the wall” someday.
- Debt growth of 8.9% per year (average for 105 years) will boost $22 trillion to $500 trillion in 60+ years.
- When official national debt has grown to $500 trillion and over $400 trillion dollars have been created to pay for warfare and welfare programs, what will a cup of coffee cost? Will you buy a Grande Starbucks for $50 or $250? A Big Mac for $100 or $500? What happens to your cost of living and your taxes?
- The current financial system may not survive ten more years without a debt reset, and 50+ years seems nearly impossible.
- A debt reset will occur. Expect trauma because those defaulted debts are someone’s assets. Think Detroit or Puerto Rico but thousands of times larger.
- Debt based dollars and paper debts include counter-party risk. Be careful.
- Gold and silver have no counter-party risk and have been real money for thousands of years. Governments and central banks can’t “print” gold.
- National debt in 1913 was $2.9 billion. Today it’s $22,000 billion, an 8.9% compounded increase each year. Debt continues to grow.
- A mere $27,000 invested in 1776 at 8.9% would have increased to $22 trillion today. Compound interest is deadly for debtors, including welfare and warfare governments. Expect higher taxes, defaults and hyper-inflation.
I.Q. Test Questions:
- The U.S. and other countries generated excessive debt. Will creating more debt solve an excessive debt problem?
- Are central banks part of the problem or the solution?
- Can the U.S. government borrow its way to prosperity?
- Warfare and welfare are expensive. If the U.S. can’t afford their ever-increasing costs, and corporations and people demand both, will congress resolve this dilemma easily and peacefully?
- Gold and silver protect individuals and countries from consumer price inflation. Is stacking gold and silver a good idea?
- Gold and silver are necessary to preserve purchasing power. China and Russia accumulated huge stockpiles of gold while the U.S. has squandered its gold. Will piles of dodgy debt paper or stacks of gold be more valuable in ten years?
- Do you own gold and silver as insurance against dollar devaluation by governments and central bankers?
Read: Holter – Crash Alert #2
The mathematics of debt, increasing interest payments and fiscal and monetary nonsense are inescapable. The welfare and warfare people will demand larger budgets, more debt, and higher taxes.
Bombers and bunnies are influential groups. They will get what they want – more warfare and welfare. We have been warned by sixty years of history.
The sun will rise tomorrow as it will in ten years. Sunlight reflecting from gold and silver bullion will be more satisfying than watching dodgy pieces of debt paper slowly devalue toward worthlessness.
Call Miles Franklin at 1-800-822-8080 and order your warfare and welfare debt protection kit.
Tell them you agree with The Deviant Investor.