Article by Craig Bennett
It seems like a strange irony. It’s the most powerful nation the world has ever witnessed – militarily, at least. Yet its weakness economically is showing up in all sorts of places. Stubbornly high joblessness. Zombie financial institutions. A wobbly stock market. Terrible foreclosure statistics. And debt – both private and public – out the wazoo, in figures we cannot even apprehend. Can both exist together? A powerful military coupled with a weakening economy? Probably not. In fact the question might be asked, why hasn’t the whole thing collapsed by now?
Yes, the U. S. Government is bust. There is no way it can meet its guarantees to future generations of Americans pertaining to health care and old-age pensions, not to mention maintain its military presence around the globe. And I’ve not even mentioned the cost of servicing the national debt – never mind paying any of it back which is not even on the radar screen. When I claimed the federal government can’t do it, I meant that. Not even by increasing taxes.
It’s bankrupt and it sustains itself through its power (until now) to borrow from foreigners as well as to create money out of nothing at all to make payments on its obligations. Once the first has gone, the second will go, as they say, “to the moon.” The consequences of essentially unlimited money creation by the Federal Reserve to meet the funding requirements of the central government is going to be disastrous. Prepare for it as if your future will depend on it, because it does.
If you are planning your retirement based on the assumption that you’ll get the same government benefits in your old age that your mother and father did, you’re in for one horrible disappointment. For you, as well as millions like you, retirement will be repealed.
Get busy yesterday.
About the Author
Craig Bennett is a freelance copywriter and former college instructor in Business Administration. He created Money Talk Daily as a resource for individuals and families in these difficult economic times.
He also enjoys writing on other topics at sites like Bird Feeders Blog.
