by Gary Christenson, Deviant Investor:
Quick summary: U.S. debt, spending and deficits are out of control. Thinking otherwise is delusional. The “runaway train” of debt creation will end tragically. Protect your assets from a mathematically assured disaster while you can. Buy and hold silver, gold and platinum.
The national debt of western nations plus Japan is a travesty that threatens national insolvency, a crashing financial system, and social stability!
Governments spend more than they extract from their citizens. They borrow the shortfall, a virtual mortgage on the earnings of future generations. This is bad policy, delusional and self-destructive.
From Thomas Jefferson:
“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”
From Herbert Hoover (President 1929 – 1933)
“Blessed are the young, for they shall inherit the national debt.”
Official U.S. government national debt (many other countries are no better) is the debt owed “on the books.” Unfunded liabilities, such as Social Security payments, Medicare, military pensions and upcoming student loan defaults are NOT included. The reality is far worse than indicated by the official national debt.
Plot 50 years of official national debt on a log scale. The trend is unmistakable. National debt has increased exponentially 8% – 9% per year. National debt doubles every eight to nine years.
Official national debt exceeds $21 trillion. Unfunded liabilities are $100 to $230 trillion, depending on who is counting.