The “Affordable Care Act” (Obamacare) is costing its ‘beneficiaries’ more each year without escaping annual deficits that must be made up by borrowing. Borrowing is used so that present taxpayers will not notice the costs being heaped upon them; repayment will be required -with interest added- in some future politician’s term. Not very honest, such politicians, but they are empowered by voter apathy. And too, we recall the adage: “Nobody every swindled an honest man.”
At present, the accumulated national debt requires that every taxpayer cough up some $157,000. In addition to their taxes, personal debt and of course, support. How many American taxpayers will ever approach that repayment?
Before assuming that the ‘rich’ will pay it for you, note that those taxpayers already pay essentially all of U.S. income taxes. Adding that they can afford lawyers and are the source of politicians’s campaign funds, how much more can we expect that they will pay?
So the U.S. government, like its European exemplars, is in fact bust, attempting with fiat money from the Fed to pretend to solvency. The ability to continue that pretense is winding down with oncoming world recession. That will upset many apple carts and destroy maybe, half our paper wealth. It has after all, been only paper and politics.
None of this is new; we have said it all before. But now, it is becoming reality, not so easily dismissed as of yore.
Recalling that in the Great Depression, the government dropped the gold standard for paper money while devaluing the dollar, we will not be surprised now to see the use of cash abandoned by law for electronic money, setting government over all transactions.
We suggest where possible, a stash of some cash to tide one over the likely gap between past andfuture if that path is followed. It won’t work of course, but time will pass before that becomes inescapable.
And a l lot of present government benefits will disappear as government finances are forced to recognize government’s actual income, that will shrink for a while.
You need not believe us,; we hoe that we are wrong. But you will have to admit that, nutty or not, we have provided our expectations for you.
A happy and fruitful 2016 …and may our concerns vanish into a happier reality.