Common Sense – Ch 2 Money Prt 3
BUT THAT’S NOT ALL! Act Now and We’ll Also Include a Financial Meltdown!
Now that everything is beginning to crash down upon us, what do our politicians do? They promise us that the way out of our crisis is to spend trillions of more dollars in borrowed funds. And we believe their lies because it feels good. We look to any good news to convince ourselves that our ship missed the iceberg and is not really sinking.
But it is sinking… and so are the lifeboats.
The boat analogy is apt, not only because we are a stricken vessel that is sinking deep in uncharted waters, but also because we’ve handed over control of our ship to a captain who works for a hostile, competing shipping company.
The shortsighted political elite brag that China holds $724 billion in U.S. Treasury securities, making it the largest foreign holder of our debt in the world. They talk with pride about how China’s willingness to buy our treasury securities reflects their confidence in our economy and future. But what they fail to mention in their carefully orchestrated press conferences is that China is in a position to dictate our future because it can create a crisis here unlike any we’ve ever seen before. It wouldn’t take one missile or army battalion to do it—it would just take a decision by them to sell all our debt or to demand extravagant interest rates from us in exchange for continuing to buy it—something that many are concerned is right around the corner.
The Ivy Leagues tell us that will never happen. If China sells our debt it would collapse our economy, thereby eliminating the largest market for their products, meaning a crippling of their economy as well. It’s a very logical case—but by now we should know that logic is in even shorter supply among our leaders than intelligence.
Here’s how this scenario might play out if it were happening in your own home instead of in Beijing and Washington: You lost your job months ago and haven’t told your wife about it. To keep up the illusion of your old life, you’ve run up all your credit cards and you’re having a hard time even making the minimum payments.
You know your wife will catch on if you stop going out to dinner or shopping so you continue to eat out and buy nice stuff. Months pass and you’re now run up more debt than you could ever pay off—even if you get a better job. To make matters worse, you cheated on your taxes and were less than honest when filing your unemployment paperwork.
Now things are starting to come apart at the seams. When bill collectors and IRS auditors call, you blame them loudly in front of your wife, accusing them of incompetence in their record keeping.
As things continue to get worse, you start to believe your own lies. I’m sure I’ll win the lottery, you think to yourself as you hand over another hundred dollars to the convenience-store clerk. That would solve everything!
Knowing that you need to buy time and wait for the next lotto drawing, you borrow money from the only source that will lend it to you: the mob. They tell you that you will have to pay them a much higher interest rate than usual and that you’ll have to pay it all back by the end of the week. No problem, you think—you’ll find a way; you just need some breathing room.
You take the money, confident in your delusional belief that the massive lottery jackpot is yours after the next drawing. While you’re waiting, you take your wife out to the casino and lose all of the mob’s money. The next day, the lottery numbers are drawn and… you lost. Now you owe your creditors thousands, you face jail time for cheating, and, worse, Vinnie will be knocking on your door at the end of the week to collect. One way or another, Vinnie always gets paid.
That is where America now finds herself.
Our solution has been to ward off Vinnie and the others by essentially breaking more laws. We’re cranking up our printing presses at breakneck speed—something that is akin to counterfeiting given the fact that we have absolutely no collateral to support any of that money.
Our strategy isn’t all that far off from the one used by doctors who fight cancer. They literally inject poison into cancerous cells with the hope that the poison kills the cancer before the cancer kills the patient. It’s a delicate balance with potentially fatal results. But doctors take precautions; they have a game plan and an exit strategy. We don’t. We’re treating our cancer with massive doses of chemo… and it’s killing us. There is no balance, no plan, no exit strategy, and yet, despite a track record of terrible, life-threatening decisions, we continue seeing the same doctor. When do we realize it’s time to find a completely new kind of treatment?
The worst part is that the snakes responsible for this scheme know that it isn’t going to work. Why? Because it never has. But they also know that, unlike private corporations or businesses, countries do not go bankrupt, because governments can always print more money to satisfy their debts.
Ask the Germans who lived in the final days of the Weimar Republic or the Africans presently trying to survive day to day in Zimbabwe if hyperinflation is real. Just as in America today, those countries both believed that hyperinflation couldn’t happen to them, or that they could contain its awful consequences. They were wrong.
So-called experts cite the historical consequences of grotesque overspending but then go on to conclude that our own destiny will be different from those who previously went down this same path. I’m sorry, did I miss something here? Isn’t the definition of insanity doing the same thing over and over but expecting a different result? Spending too much money and purchasing our own debt devalues our dollar, the inevitable consequence of which is that it will take more of them to buy what we want. That’s called inflation and it is one Law of Nature that the powers-that-be will soon not be able to ignore.
Our legacy to our children need not be a lifetime of servitude to our country’s creditors—but the insanity must end now. The time available to save our country will run out well before the money does.