No We Can’t
Can we as a nation continue to borrow 46 cents of every dollar our government spends?
No we can’t.
We can’t because there are only 3 ways out of this trap and only one of those ways is good. The good way out is to
grow our way out of the debt, but in the face of increasing job loss, declining retail sales, increasing loan defaults,
declining real estate values, only the most optimistic can believe this could happen in the near future. In the mean time, the
debt piles up and up, an almost two trillion deficit this year alone with the national debt topping 12 trillion by the end of
the year. Your individual share as an American citizen is over $30,000 and growing by the minute.
Another way out of the over whelming debt is to inflate the money supply to such an extent that dollars are so plentiful
that what seems like a huge debt becomes more manageable. The only problem is that while debts may be easier to pay
off, the cost of everything else goes up. To pay off this kind of debt, they would have to inflate the money supply a lot, to
the point that $4 a gallon gas cold be considered really cheap.
The third way is to default on our debts and or we could devalue the dollar. These are the scenarios that have our
creditors worried and nations like China, India, and Saudi Arabia are quietly buying gold with the dollars they hold
because they fear the US will have to resort to these solutions.
At the same time central banks in the west and the IMF are selling off gold reserves to pay obligations. Do you get the
picture? Have you heard the old saying “he who has the gold makes the rules”? J.P Morgan the tycoon of the early 20th
century said; “Gold is money and nothing else.” and it’s still true today. Paper is nothing more than a promise and an
increasingly empty promise.
It’s true we have gold in Fort Knox, but it’s hard to find out just how much is really there; there hasn’t been an audit in a
few decades. The best information I can find is that there is less than $300 hundred billion in today’s dollars in the vaults,
possibly as little as $11 billion. Compared to today’s throwing around of trillions of dollars, it’s a drop in the bucket
really. Just like Obama’s savings of 73 billion in his budget is a drop in the bucket compared to the 1.5 (or more) trillion
dollar deficit that the government is running up.
Bush and the Republicans started us down this road to ruin, but now Obama and the Democrats have grabbed the wheel
and its pedal to the metal on the way to the brick wall of reality.
Now they are talking about national health care and who knows how much that will cost. At the same time we hear that
Social Security and Medicare are going broke faster than anticipated.
The trust funds are almost depleted, but of course there has never been any real money in the trust funds in the first place,
only IOUs the government wrote to itself to be repaid in the future, with worth-less dollars. Can we afford to have quality
national healthcare and retirement income in the coming years? No, we can’t.
© Tim Thomas 2009
Can we as a nation continue to borrow 46 cents of every dollar our government spends?
No we can’t.
We can’t because there are only 3 ways out of this trap and only one of those ways is good. The good way out is to
grow our way out of the debt, but in the face of increasing job loss, declining retail sales, increasing loan defaults,
declining real estate values, only the most optimistic can believe this could happen in the near future. In the mean time, the
debt piles up and up, an almost two trillion deficit this year alone with the national debt topping 12 trillion by the end of
the year. Your individual share as an American citizen is over $30,000 and growing by the minute.
Another way out of the over whelming debt is to inflate the money supply to such an extent that dollars are so plentiful
that what seems like a huge debt becomes more manageable. The only problem is that while debts may be easier to pay
off, the cost of everything else goes up. To pay off this kind of debt, they would have to inflate the money supply a lot, to
the point that $4 a gallon gas cold be considered really cheap.
The third way is to default on our debts and or we could devalue the dollar. These are the scenarios that have our
creditors worried and nations like China, India, and Saudi Arabia are quietly buying gold with the dollars they hold
because they fear the US will have to resort to these solutions.
At the same time central banks in the west and the IMF are selling off gold reserves to pay obligations. Do you get the
picture? Have you heard the old saying “he who has the gold makes the rules”? J.P Morgan the tycoon of the early 20th
century said; “Gold is money and nothing else.” and it’s still true today. Paper is nothing more than a promise and an
increasingly empty promise.
It’s true we have gold in Fort Knox, but it’s hard to find out just how much is really there; there hasn’t been an audit in a
few decades. The best information I can find is that there is less than $300 hundred billion in today’s dollars in the vaults,
possibly as little as $11 billion. Compared to today’s throwing around of trillions of dollars, it’s a drop in the bucket
really. Just like Obama’s savings of 73 billion in his budget is a drop in the bucket compared to the 1.5 (or more) trillion
dollar deficit that the government is running up.
Bush and the Republicans started us down this road to ruin, but now Obama and the Democrats have grabbed the wheel
and its pedal to the metal on the way to the brick wall of reality.
Now they are talking about national health care and who knows how much that will cost. At the same time we hear that
Social Security and Medicare are going broke faster than anticipated.
The trust funds are almost depleted, but of course there has never been any real money in the trust funds in the first place,
only IOUs the government wrote to itself to be repaid in the future, with worth-less dollars. Can we afford to have quality
national healthcare and retirement income in the coming years? No, we can’t.
© Tim Thomas 2009
