A Nation Gone Bust
It seems like a peculiar paradox. It’s the most powerful country the globe has ever seen – militarily, at least. Yet its weakness financially is showing up in all kinds of places. Stubbornly high unemployment. Zombie financial institutions. A shaky stock market. Terrible foreclosure stats. And debt – both public and private – out the wazoo, in figures we cannot even apprehend. Can both exist together? A powerful military coupled with a deteriorating economy? Probably not. In fact the question might be posed, why hasn’t the whole thing collapsed already?
Yes, the U. S. Government is bust. There can be no way it can carry out its guarantees to future generations of Americans pertaining to medical care and old-age pensions, not to mention sustain its military presence all over the world. And I’ve not yet mentioned the expense of servicing the national debt – never mind paying some of it back which is not even on the radar screen. When I said the federal government cannot do it, I meant that. Not even by raising taxation.
It’s bankrupt and it maintains itself through its power (until now) to borrow from foreigners as well as to create dollars out of nothing at all in order to make payments on its obligations. Once the first has gone, the next will go, as they say, “to the moon.” The consequences associated with practically limitless money creation by the Federal Reserve to satisfy the funding requirements of the central government will be devastating. Plan for it as if your future depends on it, because it does.
If you’re planning your retirement based on the supposition that you will get the same government benefits in your senior years that your parents did, you are in for one horrible disappointment. For you, as well as millions like you, retirement is going to be repealed.
Get busy yesterday.
Craig Bennett is a freelance copywriter and former college instructor in Business Administration. He created Money Talk Daily as a resource for individuals and families in these difficult economic times.
Related posts: