Yes, by the time President Obama leaves office you can expect that the Federal Debt will be well within reach of the $21 Trillion mark and easily 112% of U.S. GDP and if you take Government spending out of the GDP figures it will be closer to 158%. Is Obama to blame? Yes and no; the fact is that he’s culpable only as to the fact that he’s failed to drive a course correction, but given he has absolutely no economic or financial management capacity, it is foolish to expect any different turn of events. The reality however is no less promising as the growth in the debt lies squarely at the steps of Congress, specifically the U.S. Senate. The U.S. Dollar, on the world stage, is headed for the history books and when that happens (and it is already occurring) inflation will destroy what remains of the U.S. economy and debt-fixed U.S. financial markets.
Until the U.S. restores the order of the domestic economic structure there is no reversing the course; so long as corporate salvation at the expense of the domestic agenda remains sacred there is no reversing the course; so long as the illusion of a global economy remains dominant and domestic solvency subservient there is no reversing course; so long as government revenue solutions are primarily sourced by enforcement against and upon the American household there is no reversing course; so long as political expedience is funded by spending resolutions there is no reversing course; so long as you remain a bystander to the existing matrix of lawlessness there is no reversing course.
The following are a select group of responses to questions/comments received after the original article was published. We believe you will find them of interest.
#1: What is the “domestic economic structure”? It is the fundamental and inherent value implicit in a market; it is the implicit acceptance and understanding that:
(1) All and every economy is local.
(2) that economy only exists when and where there is demand (and the capacity to exchange value for it) in search of supply.
(3) that the more proximate supply (and its creation) is to demand the more stable the economic environment.
(4) that supply does not, in itself, create economy.
(5) that for wealth creating capacity to occur the capacity for and creation of wealth must always be greater than consumption. .
(6) The wealth of an economy is not merely measured in $ output but more so in the expansion of individual wealth creating capacity.
(7) an individual’s wealth-creating capacity is not merely a function of their physical and tangible output; it is chiefly a function of the Individual’s desire-capacity and the freedom/liberty to express it.
(8) The value of a Nation is measured in its capacity as well as its pro-generative potential for the creation of wealth.
We can no sooner survive as servants to the Corporate (Multi-National) /Government structure than we can subsist from breathing the air we expel from our own lungs; those systems can and must only ever function to enhance, expand and protect the production of breathable air. End of story!
#2: Gold Standard as a fix? I’ve long held the belief that any measure of wealth is always subjective. Gold is no different and because of its ethereal notional value perhaps that is why it is so worthless as an economic measure. After all, at some point, does it not also have to be quantified in terms of a unit of value and if so, by whom? The point is that its not so much what defines the unit of value but more so how the unit of value is both fractionalized and thus manipulated which is, ultimately, how and why inflation occurs. Bullion, whether in the form of gold and silver, should be “banked” by Nations as a substantive and representative measure of a Nations Treasury, but as a direct correlation to a currency’s unit of value I have serious concerns. I believe a more relevant and appreciating measure of value is that of a nations wealth creating capacity and then on an annual basis you adjust the value (by change in currency in circulation) to reflect growth or contraction.
Curtis C. Greco, Founder