It occurs to me that in my past letters to the editor, I had not explained as thoroughly as I could, the economic condition in general of the United States, so here it is. America today for those who are curious has around 90 trillion dollars of unfunded mandates or entitlements (promised government spending mandated by law i.e. Social Security, Medicare, Obama care etc) which is far greater than even the World GDP (our yearly GDP being only around 15 trillion). In addition we have a total debt of over 17 trillion dollars (US treasuries sold etc). Add to this a government that is bankrupt and running trillion dollar yearly deficits on average; along with a Federal Reserve that is now printing a trillion dollars out of nothing per year and giving it to banks and investment firms’ interest free to drive the stock market up, as well as purchasing around 90 percent of all our treasuries per year with monopoly money because nobody will buy them. In addition we have a congress which has had no budget at the Federal Level for the last four years going on year five.
On the International Front we have numerous countries that are now as a result of our debt and money printing, actively trading outside the dollar thereby threatening our hold on the dollar being the reserve currency of the world! And, if that weren’t enough, we have Obama Care, the Granddaddy of all spending programs which promises once it is fully implemented, to add an additional 7 trillion or so of new spending.
It is obvious that the United States cannot possibly meet all these obligations in their entirety and therefore you begin to see the true nature of America’s condition. To say as some do that the economy will eventually “swing the other way,” is absurd as there has simply been too much “funny money” printed by now, and “dollar destruction” for it to just “go away”!
What is happening in our economy is not the normal economic activity of “ups and downs” dictated by common market and valuation forces or stock market activity etc. What we are seeing instead to put it bluntly, is the destruction of the foundation of the stock market, or even more succinctly, the destruction of the foundation of the American economic engine itself, and therefore virtually everything we do. It is the destruction of the dollar!
In the end, hard and embarrassing questions need to be asked of all our representatives including Republican Congressman Scott Tipton at his Town Hall, if he decides to have one. These questions need to include why the Republican led Congress in general is refusing to cut funding for Obama Care? Why the Republican led Congress, in general, is refusing to call before congress Ben Bernanke the Chairman of the Federal Reserve to testify concerning his unstoppable money printing (monetizing of the debt). Why the Republican led Congress in general refuses to produce a yearly budget even though it’s been in power since early 2011. Why the Republican led Congress in general is allowing the dollar (the very foundation of the American economic engine) to lose more and more of its reserve currency status! And finally, if Republican and Democratic Representatives will personally pay out of pocket for their own healthcare under Obama Care as they should when it is implemented?! Or will they allow the President (as he “Obama” promised earlier) to pay 75 percent of all health care costs for congressmen and their staffers under Obama care while they are in office. Obviously what’s good enough for the American people (Obama Care) should be good enough for congress!
If Mr. Tipton cannot answer these questions in an acceptable way, than like Mr. Salazar before him, it is time for him to go!!
The Congress today is filled with individuals who are clueless about the true nature of the fiscal and monetary calamity that is right at the door, and if not clueless then they are oblivious about how to “head this catastrophe off before we are destroyed! “ And “heading this off” is the key (Watch for my next letter)!
In closing let us all take a hard look at Detroit. Once a model city of the United States, Detroit which is roughly the size of Denver has now declared bankruptcy. It is a war zone with hundreds if not thousands of abandoned homes and crime to boot etc. In the not so distant future as the economic dominos continue to fall due to City, State, and National bankruptcy brought about by deficit spending by those in power, and coupled with unlimited money printing by our friends at the Fed, there will be Detroit’s all across the United States. The difference is that by that time the dollar itself will have also collapsed.