- Global debt was $40 trillion during the 1990s.
- Global debt today is $250 trillion.
- U.S. Federal Government owes $21 trillion.
- U.S. Federal Government also has another $210 trillion in unfunded liabilities.
Is the U.S. monetary system sound?
- Only for the very, very few.
- A downturn is expected to occur in the future, which will cause the affluent to no longer be affluent.
To whom does the U.S. monetary system mainly benefit?
- Special interests.
How are U.S. citizens responding?
- Dissension among the classes (i.e., between the rich and the poor).
- Contemplating civil strife.
- Advocating civil war.
What’s the primary cause of all these problems?
- Badly allocated business investments, due to artificially low cost of credit and an unsustainable increase in money supply. Central banks are often blamed for causing malinvestments, such as the dot-com bubble, and the United States housing bubble.
But why does the economy seem to be doing so well now?
- Trump administration implemented tax cuts and deregulation, all of which has provided a tremendous boost to the economy.
- However, the administration’s actions do not target the real problems of the U.S. monetary system.
What’s truly wrong with our monetary system then? Where should our focus be?
- America is addicted to debt.
- Relies on breeding more and more debt.
- Government officials turn a blind eye to excessive spending and debt accumulation.
- The current generation wants future generations to worry about repaying the debt. Evidently, what matters most to politicians is the short term, not the long term.
What are some examples of nations whose governments have collapsed as a result of imitating the U.S. monetary system?
Why did these countries fail but the U.S. hasn’t (yet)?
- U.S. dollar is the world reserve currency, which grants it a kind of “temporary immunity” from the adverse effects of poor economic policy.
How is the U.S. government (or more specifically the Federal Reserve) staving off the impending crisis?
- It is attempting to liquidate the current debt by inflating and devaluing the currency.
- Whenever a problem arises, it doubles the money supply in order to stimulate the economy.
- In other words, the U.S. government is trying to pay off the debt with “junk” money, all of which is supplied by the Federal Reserve.
How is the Federal Reserve responsible?
- The Federal Reserve encourages debt.
- The Federal Reserve accommodates debt.
- The Federal Reserve insures debt.
- The Federal Reserve essentially permits banks to be careless (e.g., housing bubble).
What is the U.S. government primarily doing by expanding this seemingly infinite supply of paper money?
- Subsidizing existing debt.
- Issuing welfare.
- War mongering and profiteering.
What will happen in the future if U.S. citizens don’t address these problems now?
- When the debt becomes too large, it will become impossible to pay off productively.
- The federal government will be forced to convert assets into cash or cash equivalents by selling them on the open market.
- If that does not work, a tremendous global recession will ensue.
What can be done to mitigate the adverse effects of such a flawed inflationary monetary system?
- Decentralization is key to protecting more individuals from the adverse affects of the impending crisis.
- Various governments, including the U.S., are advocating for more centralization through a unified global currency.
- By concentrating the control of a global currency under a single authority, it will be easier for corrupt individuals to capitalize off the deleterious effects of excessive spending and debt accumulation.
- To prevent such an scenario, it would be in our best interest to decrease centralization by returning to “sound money” and “market-chosen currencies” (i.e., money not liable to sudden appreciation or depreciation in value).
- Let us make a change in society by educating others on this issue.