Politics in America has turned into entitlement and the addiction to debt and, too often, the voter believes only the government can correct inequality but the more you take from those who produce the less productive those who produce become.
So who will be asked to pay off the U.S. government’s ever increasing debt? It will be our children who will suffer. The U.S. has become the largest debtor nation in history.
When the U.S. government does not take in enough revenue to pay its debt the only way out is to print more and more money with nothing more than the USA’s good name as collateral since gold was dropped from backing up U.S. currency and debt in 1971. Gold was replaced by backing up the U.S. dollar with nothing more than the good faith of the U.S. government’s ability to pay off any and all debt!
Why did the U.S. government choose paper money over a gold-backed currency?
Paper money simply allows the rich and powerful to manipulate interest rates, prices, the money supply and available credit for their own advantage allowing them to create even more wealth for themselves and their families.
Printing more and more money is a form of stealing that only leads to devaluation of the currency and higher prices for everything. Wealthier people feel richer than ever but that wealth is mostly on paper, built on a house of cards that will collapse. The middle class gets hurt most because wages cannot keep up with inflation so they, like the government they vote into power, also take on more and more debt. And when the U.S. dollar collapses it will likely happen almost overnight so there will be no time to protect your current wealth.
The government will never alert the public of what can happen because causing a panic is actually worse than just letting it all happen virtually overnight. It is like pulling a bandage off really slow or really quick, or choosing slowly bleeding to death to a quick shot to the head. Most everyone would choose a sudden jolt over slow torture.
Due to technology, productivity is increasing which should lead to lower prices but it has not. So where did all the wealth go? Inflation has consumed much of the wealth gained in productivity. Also, all the wealth from productivity and paper money has been consumed by Wall Street, the U.S. government, the corporations which finance their debt at available low interest rates and anyone else who benefits from inflation which excludes the middle and lower classes of the population. Also, due to the productivity of technology, job replacement will, more often than not, come at a much lower real wage.
Making matters worse, our children will be left with an economy in heavy debt led by a society that is addicted to consumption while the economic and monetary system actually rewards debtors and punishes savers. Those in power in politics and those managing the currency, the Federal Reserve Bank, until the house of cards collapses, will maintain their power with paper money. These institutions could not survive going back to the gold standard backing up the U.S. currency because the gold standard does not allow for having any more debt than there is gold to back it up.
Consequently, the average person works harder, produces more and earns less while those in politics and power become wealthier and inequality will only increase as long as government continues to print more and more money, as well as bailout their favorite, failing industries and corporations, and overspend and over-tax, all while destroying the world’s faith in the U.S. dollar as a stable currency.
Paper money ends up stealing from creditors, like China and the U.K., which lend money to the U.S. by buying U.S. treasury bonds and U.S. government-backed securities in return for guaranteed interest income on these loans. The U.S. is so deep in debt that the creditors who lend money to the U.S. end up having no chance of ever collecting on the debt they have loaned the U.S., making America dependent on its lenders to sustain the consumptive standard of living by the citizens of the USA.
Eventually the U.S. is facing a mutiny on the U.S. dollar. World governments are in the process of creating a new dominant world currency based on the Chinese yuan backed by gold which is why governments like China are building huge stockpiles of gold so when a new stronger currency IS created there will be tremendous demand for China’s bonds and paper money making their currency the most reliable. The impact on the U.S. dollar will be catastrophic.
It will be our children who suffer the most creating a generational storm. Our children will be heirs to financial systems, programs and institutions their parents set up through the politicians of the U.S. government and the officials at the Federal Reserve Bank, many of which are generally worthless scams and produce results contrary to their stated goals, so we all end up poorer and less secure.
Our children’s parents have voted in politicians and inspired special interests to gain political favors designing systems to protect, from their children, the parents’ Social Security benefits, their health care, their stock market portfolios and their businesses.
Our children should be talking about a revolution…tearing down the walls of unnecessary debt, bureaucracy, taxes, paperwork and regulation that make it so hard to start new businesses, get good jobs and build real wealth.
Odds are most of our children will be unable to pay off their student loan debt but there is a loophole to exploit this debt. If you cannot pay off your student loan and your income remains low for 25 yrs, as long as you pay some amount, any amount, and you make 300 payments then your debt will be considered satisfied or paid off! However, if you do not make at least a token effort at some kind of payment for 25 years, no matter how small the payment amount is for 300 months, then the U.S. government, which guarantees payment for all student loans, can garnish your wages and Social Security benefits too in order to collect on your student loan.
Once the U.S. currency collapses, it may be the end of America as we know it, however, it is not the end of productivity because in the next 30 years technology will liberate the world, creating a world of abundance. Unlike the past, abundance created by advances in technology will not only be for the rich and affluent but will improve the lives of most everyone on the planet.
No matter how bad things are portrayed by the media and others, the growth of technology alone will create abundance and possibilities never before even dreamed of. The only thing that will stifle and slow this progress is government regulations and those in power who will do everything they can do to protect the special interests of the voters and others who put them in power and keep them in power.
Yes, there is and will be higher prices due to inflation but these higher prices will actually be lower by comparison to prices in history for the cost of education, energy, food, health care, you name it. Even the oppressed in the world will fare better and finally have a voice and influence in the new world of advanced technology. Unlike in the past, all the necessities of life and advancements of technology will no longer be just for the rich and affluent.
Due to technological advances small teams of people driven by passion and focus will do more for the planet and its inhabitants compared to what big, slow moving governments and industry have done in the past. Have confidence in the future because passionate, technologically empowered individuals using the vast wealth supplied by philanthropists from around the world will take on all challenges creating abundance, making more and more resources available to most everyone who wants it.
Due to technological advances creating more abundance than ever in history, the world’s population, rich and poor alike, in the next 30 years will live longer and will have more access than ever before to more abundant supplies of food, energy, transportation, education and communications than they have ever had compared to past generations.
SUPPLEMENTAL SOURCES: AMERICA 2020 BY PORTER STANSBERRY 2015 and “A GENERATIONAL STORM IS COMING” THE STANSBERRY DIGEST MAY 31, 2015 and “ABUNDANCE IS IN OUR FUTURE BY PETER DIAMANDIS OF SINGULARITY UNIVERSITY FEBRUARY 2012