Fiscal Calamity: The Coming Financial Crisis

timwilliams By timwilliams, 1st May 2016 | Follow this author | RSS Feed | Short URL http://nut.bz/2x_r22sq/
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The United States is on the verge of the greatest financial disaster in our history.

Fiscal Calamity: The Coming Financial Crisis



With all the fan fare on this years Presidential election where so many are focused on Trump or Clinton underneath the facade of political rhetoric lies in wait a financial calamity the likes of which would decimate this nation. With blundering policies from trade deals to military interventions over the past 30 years have impoverished this nation. The fact of the matter is the United States is beyond fat broke. While the Millionaires and Billionaires keep tax havens off shore while the middle class wage earning jobs have been virtually eliminated the tax revenue that is so necessary to keep this country solvent has all but disappeared. This cold reality has now put the United States right at the brink of a financial disaster unprecedented in modern times. It should be noted that our national debt now exceeds the value of the entire U.S. economy.

Today, the United States has to borrow more money every month just to pay the $86-billion monthly interest on our national debt. More than 20% of all government revenue is now being sucked up by interest payments. What is even worse is that all but one Presidential candidates are in compliance to keeping the government’s illusion of solvency. To keep this illusion Congress for years have been quietly refinancing the debt to the tune of billions of dollars every week. All this right under our noses. To compound the massive financial tsunami that is heading right for the US is that the Fed's secret rollover missions has extended the length of America’s debt to levels never witnessed before in history. This in itself is unconstitutional.

Congress's behavior is shockingly similar to how the banks twisted and contorted subprime mortgages ahead of the collapse of the housing market of 2008. What is perceived as an economic recovery since is actually a continued case of denial of the financial predicament the United States really is in. The recovery is artificial. The US hasn't recovered from anything. In fact the country is in far worse shape than what our media friends keep reporting. Remember the housing bubble of 2008 well the Federal Reserve with all those QE bailouts has inadvertently created a much bigger financial bubble. The consequences now when it bursts and it will very soon will impact every American in a way that will change our way of life as we know it. When the Fed ushered in those QE programs did so not with the intent of creating real authentic economic growth. All those billions of freshly printed money went right into the coffers of the same institutions that created the financial crisis of 2008. Ever since then it has done nothing to spur economic stability for the majority of Americans. The banks got bigger while the majority of Americans got poorer. Consequently the much needed tax revenue to pay down debt has never been recouped. The United States continues to borrow money at historic levels sending the US straight down into financial ruin.

In the history of the United States there has never been a recovery where at the end people are worse off than at the beginning. That is until now. For the majority their net worth have plummeted, real incomes have shrunk while their debts have only increased. Not only is the country in worse shape but we are actually on life support. If Republicans have their way the extent of this financial crisis is going to be far worse than anyone has ever imagined especially when draconian cuts in those safety nets like Social Security and Medicaid or Medicare are made. Let's not forget they have already made devastating cuts in the Food Stamp program. Today, the United States has the highest childhood poverty and hunger rates of any industrialized nation.

We have to remember that when the Fed pumped out the first wave of Quantitative Easing it went straight into the financial markets. Our government forgot that in order to create real economic growth where the majority of the public can fulfill the Williams Theory of Economic Evolution that QE measure had to be mandated to the people and not to just the financial markets. The more people with enough disposable income to save, spend and pay down debt the greater the positive economic impact they have on a nation. Today, that is not the case. Too many are becoming more destitute while a few are reaping huge dividends courtesy of governmental policies that continue to widen the income disparity gap.

As the American public continue to loose ground where their disposable incomes have disappeared, where too many are living form paycheck to paycheck and where too many don't have one at all is one of the greatest factors that have contributed to the financial calamity facing this country today. Because of this many have to borrow just like our government to make it through one more day. Soon, the borrowing power of the public like our government will cease to exist. All this while the cost of living continues to increase. When, not if, the borrowing power ends our whole country will be decimated.

To put this all in perspective we have to focus our attention to our monetary policies, which has been fractional reserve banking. We have to remember the only reason why the US dollar became the worlds first reserve currency was that it was backed up by Gold. Not only that it was also redeemable in Gold. But, since 1971 when then President Nixon took us off the Gold standard confidence in our monetary policy especially with the Federal Reserve. has steady eroded. The value of our dollar has steadily shrunk. Soon the confidence in our ability to pay our debts will be lost and the US dollar as the worlds first reserve currency will be replaced. And when that happens our whole house of cards financial system will come crashing down.

Back in the late 1960's and early 1970's the United States had the worlds largest trade surpluses. We were the worlds best low cost producer of high quality manufactured goods. We were the largest exporter. Today, we are now the worlds largest debtor. We borrow from everyone. Even the poorest countries lend us money. We have the largest trade deficits. Today, the confidence in our fiscal policies is gone. And pretty soon the dollar will collapse bringing hyper inflation to everything we buy. Just imagine a gallon of milk costing $30 or $40 dollars which is highly probable coming real soon.

This is the reality facing the United States today. Is there a way to avoid catastrophe? There is but only one Presidential candidate is speaking and offering realistic solutions that will avert an impending financial disaster. Remember, the more people fulfilling the Williams Theory of Economic Evolution with fiscal policies that are backed up by tangible assets like Gold will have the greatest impact on the prosperity of a nation. We will have the ability to pay down our debts, restore confidence in our money, and bring about lasting prosperity and security for all Americans.








Tags

Banking, Financial Crisis, Monetary Policy

Meet the author

author avatar timwilliams
I am a feature writer for The Tampa Bay Examiner and The American chronicle. Earned Ph.D in Economics

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author avatar Randhir Bechoo
7th May 2016 (#)

Interesting page

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