I think there are several types of debt, and plenty of it around. As far as consumer debts, there are mortgages, credit card and other types of debts, such as department store, auto loans, and even utility bills, which are debts, and if they aren’t paid, your electricity, gas, or water will be shut off by the providers. If mortgages aren’t paid, the issuer will foreclose and take your house back. If you don’t pay other debts, such as credit cards, your credit rating will be ruined, and credit is pretty important if you want to have your utilities turned on or buy a home. All of the above, are debts contracted by the citizens or America, and we are responsible for them. If you fail to pay your debts, you may be forced into bankruptcy, and be unable to have any credit for seven years, as I have heard anyway. You make your own bed, and you have to sleep in it, as the old saying goes. When someone’s credit is bad, it is their own fault. There can be tragic circumstances I admit, such as losing one’s job, natural disaster, fire, earthquake, hurricane, and the like, but when something bad happens to you, either out of your control, or stupidity, you don’t take the nation down with you!
Unfortunately, our Constitution says nothing about America going into debt. I certainly wish it did, and if there is to be an Amendment to that sacred document, it should read that the Congress can not spend more than it takes in, other than what comes in, of receipts from all sources. You and I have to watch our spending, and have it match our incomes, why shouldn’t government do the same? What right do 535 members of the House and Senate have to run up trillions of dollars in debts? What right does the President have, to spend hundreds of billions in various places, without the consent of the Congress? What Constitutional right do various bureaucracies have for even their very existence, much less for exorbitant spending, which harasses us citizens?
America is not alone. America’s debt has increased 70% since Obama took office. From $10 trillion to $18 trillion, in just 6 years. Long term debts which have been contracted for such as federal and military retirements, Obamacare, Medicare, Social Security and the like, makes our committed debts to close to $200 trillion, an amount impossible to comprehend. The interest on our current debts of $18 trillion are $7870 per citizen per year, most of it going overseas to those who bought out debts. The national debt, currently, not future contracted for, is an amazing $153,750 per taxpayer. America is borrowing $2 billion a day, and shows no sigh of even slowing, much less stopping and becoming a first rate nation again. America is not alone in its debts. Russia has debts, as does China and every single nation on earth. In Switzerland last week, citizens were asked to vote on making the Swiss Franc whole, by backing it 20% with gold, and a whopping 78% voted "No." China has whole cities it has built with no inhabitants. China prints unbacked Yaun, as every other nation prints its own currencies such as euros, pesos, and rubles. None are backed by anything but thin air, which is from what they were created, and what their actual value is.
Will to dollar collapse as so many fools write on the internet? I doubt it, since the entire world is deeply in debt, and their only way of paying it is by devaluing it with endless printing, as Germany did after WW I. Other currencies have gone to zero too, only less quickly. As an old geezer that I am, I can remember nickel Hershey bars, Cokes, Pepsis, and even White Tower hamburgers. I rode to Sidwell Friends School in Washington D.C., with a three cent ticket which got me on all D.C. trolleys and busses. Regular fare was 10 cents, and three tokens for a quarter. In my Dad’s drug store, cigarettes were 13 cents a pack and 2 packs for a quarter. The dollar has lost about 98% of its value of 75 years ago. Can this continue? Some say we’re headed for a huge train wreck with our debts, which is the phrase Stuart Varney used Wednesday morning on Fox Business News channel. Our situation looks glum, I admit, but so does the rest of the world’s situation, so maybe the entire world is headed for a huge train wreck, with all currencies going to zero, and real money will be only gold, silver, and tangible things such as food or fuel.
The internet is full of predictions by fools who think they’re experts, or who have the usual "inside information from reliable sources," or some such malarkey. I’ve been reading Sinclair, Willey, and their types for many years, and give them as much credit as they are due, which is little to none. A few years ago, Sinclair predicted that a certain date in August would be the end of just about everything, as I remember, and the year 2,000 had all sorts of fools predicting the end because computers couldn’t handle the date. On it goes on the internet. Lots are predicting the dollar collapse, and I think this is nuts. Why? Because the dollar is stronger than any other currency now, for one, and secondly, all of them are bad! Japan’s economy is officially in recession, and its economy is decreasing at 1.9% a year. The Yen and euro are virtual toast. The buck is still the world’s ’reserve currency,’ and at an 8 year high, compared to other paper monies, although the internet idiots keep saying that it won’t be in a few days, weeks, or as long as months maybe, before the dollar collapses. Nuts again. The internet morons keep saying that gold will go to $50,000 an ounce and silver to the heavens also, which is absurd. That would happen if the buck collapses suddenly, but that’s not in the near future…in my opinion.
Gold and silver are the true money in the world, and have been since Biblical times, or even before. They are compact, universally desirable, and easily bought sold and stored. They are true inflation hedges, and there can be no question about inflation destroying the value of all currencies. Gold and silver will go up as fast as the dollar goes down, and possibly even faster, but don’t hold your breath for the internet scalawags, who charge to read their trash, of course. There’ll be paper money forever, or as long as there are trees to cut and presses and ink to turn them out. The amount of gold and silver left in the earth? No one really knows, but they won’t last forever. I’m, glad I have my net worth in gold and silver, and not in dollars! Metals prices are low because the buck is high. It shouldn’t be, but it is, at least compared to every other unbacked paper money, and that strength cannot last forever. When Monopoly monies lose value, and they all are and will, every tangible thing will go up in those prices, and including gold and silver.
The sad thing is that most world treasuries ’try’ to keep inflation at 2%, because they say that’s ’healthy’ for an economy. That’s not healthy at all. For 150 years America had no inflation, and prices were the same year after year, which is healthy, not losing 2% a year. My parents bought a 3 storey, 6 bedroom home in Washington D.C. in 1933 for $3300. I went back last year and took a picture of that house, which now is worth $600,000. Same house, decreasing value dollars. They bought a 40 acre farm in Southern Md. for $9500 in 1948, and today, it is worth far above $500,000. Same farm! When I first started doing precious metals in 1977, gold was $250, and silver $4. Same gold and silver! Decreasing value dollars. Am I boring you? Sorry. See? Gold, silver, homes, and farms have not gone up suddenly. The internet imbeciles predict that gold and silver will suddenly zoom to the heavens. They won’t, instantly, but are a superb long term way to preserve one’s wealth. Don’t waste dollars on the internet rascals. just put surplus bucks into gold and silver, and long term, you’ll be delighted.