By Rich Kozlovich
My grandfather was one of the world's great economists. He said if you spend more than you make, you'll go broke. Where and how did he get that foundational understanding? Working in the coal mines of Pennsylvania and farming his seven acres to feed his family.
Foundationally sound economics isn't brain surgery, it's nothing more than the application of history, reality, and intelligent common sense that embraces the traditional wisdom that has stood the test of time, as opposed to the insane conventional "wisdom" we see being touted. And that's nothing more than the latest philosophical flavor of the day, and will most likely fail. And when it does, it will take everyone down with it. Traditional wisdom has stood the test of time. Conventional wisdom may not last as long as the latest ladies fashion, and leave devastation in it's wake.
Life is about patterns, and the patterns of life keep repeating over and over again, and it's clear the insane spending by the world's nations is coming to what I call the "The Inevitability Factor: When Reality Reaches It's Apex!"
Economist Herbert Stein once made this "startling" observation: “If something cannot go on forever, it has a tendency to stop.” Wow, I wonder if Stein ever worked in a coal mine? But the fact is printing money with no value, borrowing beyond the ability to repay, getting involved in the affairs of foreign nations with no direct, or even indirect benefit to America, foolish energy policies involving the Green New Deal, which are in reality nothing short of anti-prosperity programs, all of which will be stopped by reality, or by sanity. Sanity is the preferred solution, because the reality that will stop it will be bankruptcy followed by tyranny and anarchy.
We're seeing these insane economic policies bankrupting China right now, and no matter what you see in the media, Xi's economic policies are Mao's economic policies, and if Nixon hadn't bailed Mao out by opening China to world trade, the CCP would have most like collapsed, but it it hadn't, it wouldn't be the threat it is to the world today. We've been funding their military expansion, and efforts to destroy America ever since.
The militarist spending of the Soviet Union bankrupted the Soviet Union leading to it's overnight collapse. A collapse no one, including me, saw coming, and the same is going to be true of China. Neither Russia or China are natural capital generating nations. Both are going to collapse economically and socially. The question that needs answering is will America follow suit? Or will Americans rise up and trash all these socialist economic schemes, along with those promoting them, that's leading America into a bottomless pit of disaster?
Well, everyone had better be prepared to do that, and soon, because at this point America's government is implementing leftist economic and social policies that are on track to destroy the wealth of the nation, crush the retirement plans and accounts of the elderly, destroy the American culture, and send the free people of America, who created the greatest economy the world has ever known, into dystopia.
Banks are already heading into serious trouble in America because of embracing these stupid anti-consumer and anti-investor, ESG, DEI, and CSR schemes, which are most likely illegal since they're failing in their legal fiduciary responsibilities to their stockholders by financing companies based on social issues. Companies that are going down the tubes. And they're refusing to loan money to those who won't bend the knee to these socialist schemes, even adjusting the loan rate accordingly.
The nation's corporations are facing massive corporate debt, the American public is facing massive credit card debt, banks are facing insolvency, all clear indications of an economic downturn that will be massive and worldwide. We're on an out of control train headed to a crash, and Biden and his leftist cabal are driving that train.
Ten years ago I predicted a worldwide economic collapse by 2025, or at
the latest 2030, and now I'm seeing this being predicted by a number of
writers. Can it be avoided? No. The downturn is inevitable, the
impact can only be ameliorated by adopting some sound economic and
social polices right now.
That starts by cutting spending on a massive scale, pay off the national debt, end borrowing, stop quantitative easing, which is:
"in essence, the expansion of monetary supply above and beyond what the economy says it needs, and then using the newly "printed" currency to purchase various bonds. This artificially drives down borrowing costs of all kinds and inflates financial markets. The idea behind it is that cheaper borrowing costs and an inflated finance market will boost business and consumer confidence and from that, spending -- thereby boosting demand in the real economy."
No matter how they attempt to twist it, quantitative easing is, as a practical answer, creating currency with no value.
Reduce the federal government by 80%. Eliminating all Departments except five permanent Departments of the Federal government. The Departments of State, Defense, Treasury, Justice, and Interior. Turning all the others into bureaus, agencies, commissions, and passing sunset laws regarding all bureaus, agencies, commissions, or any other federal entity, forcing them to justify their continued existence.
No comments:
Post a Comment