Here are some key points
-Argentina's Government, with its complete fiscal responsibility, has 20%-30% inflation each year. I'm not going to do the research, but they've had some 6 different currencies since the 1970s. How is somebody suppose to save money if the government keeps hitting the reset button?
-The Country of Cyprus had a "bail in" by people that were storing their money in the bank. Over a single week, Cyprus took a flat 10% to 47% out of peoples bank accounts to save the country. Google it.
-A loaf of bread in Zimbabwe currently costs some 3 or 4 trillion Zimbabwe dollars. This is not a joke
-The average lifespan of a fiat currency is 27 years (link)
-Would these economies begin to flourish if they had a stable currency?
More specific to the US
-The US Government is 17 TRILLION dollars in debt, with unfunded liabilities of another 127 TRILLION.
-The Federal Reserve is printing 85 BILLION dollars per month, and "might" stop
-Congress could raise the tax rate to 100% on all tax payers in the US, and still not meet its unfunded liabilities.
Based on the US Governments total liabilities it has only two options.
1) Default on their obligations(more on this later)
2) Inflate their way out.
3) I suppose there is a third option, to cut government expenditures to almost nothing, and pay their debts for the next 50 years. Knowing how the government acted over cutting 85 billion during the "sequestration" i doubt this would ever happen.
I predict in our lifetime, we will see the government do either option 1 or option 2. Option 2 is the 'nicest' one by far, and actually what they have done with government debt since the days of the revolution. Option 2 is nothing new, its business as usual.
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