Devils and Dollars
Don't let them fool you.
Inflation is bad.
But that's not all.
Bread, burgers and beer are taxed too much. Welfare is the norm. Living on the dole - expected. Self-reliance? Forgotten.
The current Greek Tragedy should be our lesson. A great nation only in memory.
The United States borrowed much from Greece. If Greece had not existed, it is safe to say, the States of America, united, would never have existed.
Unfortunately, the American Saga mirrors Modern Greece. How long then, will the American dream last if it continues to follow Greece's example?
The bigger they are...?
Greece is the proverbial 'Canary in the Coal Mine.' The American eagle, by comparison, may not land, but crash-land.
Our own follies, unlike Greece, began less than 100 years ago...
Estimate U.S. Inflation
How much inflation do you think the United States experienced in the last 100 years?
Don't peek at the chart below yet...
We can thank Franklin D. Roosevelt and his ilk, according to Don Watkins, author and past Forbes columnist.
Since FDR, America has drifted ever deeper into the quagmire of welfare and alleged entitlements. The engines of inflation.
From a land of self-reliant producers, to a land of handouts, wrenched from the dwindling few producers who remain steadfast at their posts, perhaps out of guilt. Producers strapped to the altar of sacrifice.
But they too are now dipping into the public treasury.
The recipients of the Old 'New Deal', have created a gigantic government that even a Roman Emperor would envy.
They no longer think that wealth transfer is theft, but claim it is their God given right.
It is not.
Welfare and Social Security and Obamacare are what they are. Monetary suicide.
The ends, an easy living, does not justify the means, the appropriation of property.
Inflation, onerous taxation and diminishing liberties are all kin.
You do not have a moral obligation to provide a dole for others.
You can provide charity at your discretion.
Progressivism calls for mandatory giving. The Nanny-State on steroids. Entitlements where the ends, "handouts", justifies the means, "forced" redistribution of each others cash.
The death of liberty by a thousand fiat paper cuts.
In 1975, in today's dollars, we would need twice as much currency in order to purchase the same goods and services.
But salaries were lower in 1975. The average car was about $6500 then.
In 1963 a hamburger and fries at McDonald's would set you back about 30 cents.
What do they cost now (2015)?
In Florida, the average price for a Big Mac is $4.47. Medium fries? About a $1.78. Okay, even kids understand this one.
But inflation to a kid? Who cares.
In 2015, Greece closed its banks. Capital controls began.
They sent a message. The message was that "entitlement states" fail. Early retirement causes financial shortfalls.
Greece owes about 271 billion dollars to creditors.
The debt to GDP ratio was 177% in 2014.
It is not the demographics of Greece, hard at the work of failure.
Cooking the books with Goldman Sacks.
Greece apparently lied about austerity measures, hired even more government workers (70,000 more), lied about the debt before the crisis and lied again, about alleged reforms after the E.U. continued to bail them out.
Puerto Rico now has money troubles. They owe less than Greece. Unfortunately, our exposure in the U.S. is much greater.
Puerto Rico owes about 70 billion dollars. Nearly 26.3 billion of that is held in bonds or hedge funds owned by mainland Americans and Puerto Ricans on the island. The time for selling those bonds has past. The "Puerto Rican Bond Bath" continues.
It is estimated that the Puerto Rican debt is 150% of GDP.
The island is a well known Welfare-State.
Even the governor, Alejandro Garcia Padilla, openly stated that the debt cannot be paid.
He also apparently called the bond holders from Puerto Rico, "vultures" - American citizens who invested in that country.
He is a member of the Democratic Party.
Contrast Detroit. It declared bankruptcy in 2013.
The city owed about 20 billion dollars.
Since then, Detroit's population has halved.
Unlit streets, vacant lots and thousands of abandoned buildings are what you find in Detroit these days.
Similar problems are creeping up in cities in Illinois.
Will we see more Puerto Ricans coming to the mainland?
It's already happening.
According to the IMF, the United States' debt to GDP was over 100% some years back.
The CBO states that it is about 70%.
Who is doing the math?
Do you still have complete confidence in the dollar?
Some countries have strict rules governing the supply and creation of fiat money, but some countries don't.
The E.U. didn't want to create too much fiat money for Greece. If they did, it would devalue. They demanded that Greece pay up, but this tactic is backfiring.
Is anyone surprised?
The U.K. and Finland might just pull out of the E.U. What will happen then?
Attempting to shame Germany into backing more loans for Greece, since they too were the recipient of welfare dollars after World War II, does not wash.
Germany was decimated after that war.
Today, in Greece, pensioners sit on beaches worried if the ATM's will be on tomorrow.
Some have questioned why we even need money.
They dream of a utopia without it.
Bitcoin is touted as a cure-all. But is it? Sure, it can't be manipulated, in theory, but it has no intrinsic value – or does it? You can't hold it in your hand. The value cannot be manipulated by runaway printing presses. It is deflationary in nature, but what is it? Is it just 'trust'?
One thing is certain, Bitcoin is not controlled by the Welfare State. Maybe that is its saving grace – for now.
Some of the pundits are calling for the eradication of Wall Street, banks and Corporate Greed. Fairness. It reminds me of the elimination of the Jews by Hitler. Somehow everything was just their fault.
If we could just rid ourselves of all this greed, perhaps place the wealthy in large prison camps, after we confiscate their stuff, everything would just work out. We'll ignore the 'means'.
Occupy Wall Street? Greece tried.
Can we pinpoint the date of the demise of the dollar?
Harry Dent has been predicting a Great Depression for years. He charges you for his speculation.
He claims a great track record. He makes a lot of predictions. He sells a lot of books.
But in the end it is only speculation.
Money shouldn't be controlled and devalued by fiat.
Investments should not be overly complicated, entangled and underwritten by quasi-governmental agencies.
Sound money is needed. Not flimsy currency.
The ends, to provide for the general welfare, does not justify the means, involuntary servitude.
It never has.
Something is wrong here...getting deeper...
The Great Currency Fraud...
- Watkins, Don, "Rooseveltcare: How Social Security Is Sabotaging the Land of Self Reliance." 2014
- "How much Greece owes to International Creditors", Reuters, www.reuters.com/article/2015/06/28/us-eurozone-greece-debt-factbox-idUSKCN0P80XW20150628 , June 28, 2015
- Long, Heather. "Who owns Puerto Rico's Debt?", CNN Money, July 1, 2015 (money.cnn.com/2015/07/01/investing/puerto-rico-bond-holders/index.html)
- "Detroit Banruptcy", Wikipedia, en.wikipedia.org/wiki/Detroit_bankruptcy, July 18, 2013
- www.usinflationcalculator.com accessed July 2, 2015
- www.answers.com accessed June 29, 2015
- www.fastfoodmenuprices.com/mcdonalds-prices accessed June 28, 2015
- "Historical Gold Prices – 1833 to Present", (source deleted by provider), accessed July 2, 2015
- Manuel, Dave. "A History of Debt in the United States", www.davemanuel.com/history-of-debt-in-the-united-states.php, accessed July 2, 2015
- "Puerto Rico GDP", www.tradingeconomics.com/puerto-rico/gdp, accessed July 2, 2015
- “Public debt of Puerto Rico”, Wikipedia, en.wikipedia.org/wiki/Public_debt_of_Puerto_Rico, accessed July 2, 2015
- “Greece Government Debt to GDP”, http://www.tradingeconomics.com/greece/government-debt-to-gdp, accessed July 2, 2015
- Williamson, Kevin D.“The Greeks Invented Mathematics, and now It's Bankrupting Them”, National Review, www.nationalreview.com/article/420634/greece-puerto-rico-default, July 2, 2015
- Scimeca, Gerry, "60 Plus's Main Street Bondholders Coalition New Ad Campaign: Governor Alejandro Garcia Padilla - Please Stop Attacking Fellow Puerto Ricans", PR Newswire, September 29, 2015
Obtained from Wikipedia. For more details please see:
Canary: By Juan Emilio (Flickr: Canario silvestre, Serinus canarius(♂)) [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons
Eagle: By KetaDesign (http://www.ketadesign.ca/eaglephoto2.html) [GFDL (http://www.gnu.org/copyleft/fdl.html), CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/) or CC BY 2.5 (http://creativecommons.org/licenses/by/2.5)], via Wikimedia Commons