The economic situation in this country is probably much more dangerous than most are willing to admit. Top predictions for the future include large increases in unemployment, negative economic growth, and exponentially higher costs. As unseemly as these prospects appear, none hold graver consequences than the near total devaluing of our currency and there are many legitimate arguments that this process has already begun.
Monetizing the government’s debt, also known as printing money, has seemingly been acceptable because the dollar has traditionally been considered safe, enjoying favorable status as the world’s reserve currency for many decades. But as our debt spirals out of control due to lower government revenues and, more significantly, because of monstrous older and newer spending programs our insolvency has led many individuals, banks, and governments to begin getting rid of their dollars, opting for more stable investments--just like any trader would discard an underperforming stock. This sell off is well documented and for more specifics refer to this presentation from Stanberry Research. In summation, more incredible debt will lead to incredible decreases in the value of our dollar, which will rob us of our ability to buy the things we need to live. Once that reduction takes hold, costs will skyrocket and things like food and energy will become unaffordable for the overwhelming majority of Americans and anyone else who is relying on the dollar. By the way, Michael Moore and certain labor leaders have been peddling this absurd Doctor Zhivago notion that government debts can be paid through the confiscation of all substantial private money and resources which, even if the authorities imposed such totalitarian rule, would only ensure and hasten an economic collapse. After all, who can offer anyone a job once the government has assumed all the capital of the private sector and where do you steal the money from once the debts eventually mount a second time?
That brings us to the present and all of the battles that are being waged in the name of rights and protecting the people, but what’s being missed is that if these and other budget items aren’t drastically cut now, the Left will have no choice but to accept nothing later--as will all Americans.
For instance, the teacher's unions in Wisconsin and elsewhere are viscously fighting for unsustainable pensions that will lead to increased debt and a devalued currency, but how will this benefit any public worker when the dollars in their retirement checks only have the buying power of a few pennies? Will that keep food on the table or pay their heating bills?
The Left is also advocating the continued funding of NPR and PBS--both media sources that I enjoy occasionally. But if the funding going to these programs is nearly worthless due to a debt inspired crash of the dollar how does it pay for radio stations and programming? How does a TV station survive without substantial revenue? Are you starting to get the picture?
Public funding of Planned Parenthood has also been targeted for cuts. The outcry has been comprised of the same sloganeering that’s been offered for decades--the government somehow owes the citizenry free abortions. So, what happens when the dollar is on par with the peso and government dependent clinics shut down? Privately funded clinics will find the same fate if they’re using the nearly useless currency, as well. Doesn’t that sound like circumstances ripe for back alley abortions? One wonders if coat hangers will even be affordable.
My point is that the Left, by ignoring the debt they’re proposing and the inevitable shrinking of the dollar, will defeat the very initiatives they claim to cherish. If the dollar tanks then commodity prices will sore--especially food and energy, which we’re already starting to see. If shortages from lack of affordability do happen it won’t be the rural, red stater that feels the sharpest pinch. He’ll have his hunting grounds and agricultural skills to feed his family. He’ll just throw another log in the wood stove and protect his resources with his firearms. No, it’ll be the urban Leftists that will have the most to lose--eclectic super markets and plentiful energy options will cease to exist. No more leisurely looks through the Sunday paper’s travel section. No more power for the myriad of gadgets that guide the urban dweller’s life. No more gourmet cupcakes. No more exotic coffee. No more of just about everything.
Please don’t misunderstand; I like many of these things. I just want to preserve the choice to keep these things around. When Congressman Ryan unveils his budget proposals in the coming weeks try to seriously consider the importance of protecting the dollar by eliminating our governments’ debts…and please, please…remember the cupcakes.
