“The sad truth is that there’s no fix for the mess we’ve created — at least nothing on the menu of politically feasible options. The vast majority of the politicians and voters in the US, Europe and Japan don’t yet understand what’s coming….
And even if we did wake up today, the damage is already done. The US total debt (federal, state, local, consumer, business) now comes to nearly $800,000 per family of four. And that’s not counting a similar amount for unfunded Medicare benefits and who knows how much in derivatives liabilities. So a painless fix is no longer possible. Our choices have narrowed to only two: a crash that will dwarf the Great Depression or a hyperinflation that wipes out a whole generation’s savings…
Today’s debate over federal spending and taxes is just so much fantasy. We’re like a family arguing about redoing the kitchen while the house burns down. It’s an irrelevant, annoying discussion. The interesting debate will take place after the collapse, when we have to decide what kind of society to rebuild from the rubble. Then we can argue for limited government and individual rights and sound money and all the rest. Politics will be interesting again!”
Nobody has ever summarized my views more accurately.
The unfortunate truth is that:
1) All of human civilization is way beyond the fiscal tipping point of no return.
Our current debt to GDP ratio is not the issue -- that number was higher right after World War II. To compare our present condition to that era, one would have to imagine that -- in 1944 -- Congress passed legislation mandating that World War II (and the associated spending) would never end! The spending, corruption and fraud associated with The Age of Entitlement (worldwide) is analogous to that.
2) The vast majority of global citizens will remain willfully ignorant of these facts until the inevitable collapse (and, then, they will blame anybody and everybody other than their own willful ignorance and their own gluttonous appetite for endless entitlements).
Be prepared!
2 comments:
I agree. There is nothing of value that I can add to these words. I sure hope you spend some more time in the fray at the Revo. I've been writing there for years and it's great to get someone who is studied and sparks a vigorous debate. Slightly less hostile (seemingly) would go over better, but you're a semi-free man and it's still a semi-free country.
I welcome your views and look forward to many conversations.
notamobster,
Thanks for the honest appraisal. I tend not to pull punches. It seems to be in my DNA.
But, if another approach produces better results... we'll see.
You and the entire Revo crew are welcome here anytime. Thanks for dropping by.
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