How States Can Escape America’s Looming Financial Meltdown
The USA is $21.4 trillion in debt. That is larger than the entire US economy. And it shows no sign of slowing down.
To put that in perspective, imagine spending $28 million per day, EVERYDAY since Jesus walked the earth. Even then, you’d still have a trillion dollars to go…
But it gets worse. This debt does not even include unfunded liabilities, like the promise to pay out Social Security benefits to retirees. Social Security is underfunded by a whopping $50 TRILLION.
Worse still is that the Federal Reserve has the power to print money, and set interest rates. That means the economy you and I see on a daily basis is not reality.
Markets always have corrections. It is natural for sectors to wax and wane. Some years boom, and some years bust.
But the Federal Reserve has made this problem a hundred times worse. The booms are astronomical because of artificially low interest rates.
That means it is easy to borrow money, even if there isn’t much real capital out there to borrow. And that means money gets wasted, placed in bad investments, or squandered and misallocated on unneeded projects.
We are living in a ticking time bomb.
I have no particular faith in any government.
But I do believe the smaller the government gets, the easier it is to control. Your vote might actually count at the state level.
And living down the street from your State Representative helps to keep him fearful of his constituents. Politicians should fear the people.
State governments can cushion the collapse of the federal government.
This collapse will be triggered by monetary policy.
So states should make sure their economies can keep on chugging along in the event of such a catastrophic financial meltdown.
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