History repeats. How has this been handled before? How are we currently handling?
Ongoing-the Fed prints money and the purchasing power of the dollar decreases. In my lifetime, the value of the dollar has been reduced by 98% at least. Anyone remember when a 3 cent stamp was used to mail a letter? This helps debtors.
Source for below statements-James Rickards-Financial Advisor to DOD:
1978-US$ nearly ceased to be reserve currency-US Treasury issued bonds denominated in Swiss Francs.
1977-1981 Inflation was over 50% in 5 years-IMF issued 12.1 billion SDRs to provide liquidity.
1981-1986 Paul Volkner let interest rates climb and inflation was finally under control.
Those are the recent ones-there have been others-one that’s well known is the Roosevelt devaluation of the dollar, to fight deflation. Gold was revalued from $20.67 per oz to $35 per oz.- US$ devalued by 40%.
Hard Assets are necessary in such times-Precious Metals 10-20%, Land - 10-20%, cash 30% are his advice.
I consider food to be a good investment-you have to purchase it at some point, and it’s bound to cost more down the road. I like to buy Silver Eagles as a hedge to pay property taxes should the dollar be revalued.
We grow a lot of our own food. We are now out of debt. Get prepared for the worst, and hope for the best.
If u have weapons and ammo u will take what u need
Just by scanning the text, it was obvious there were several errors. And they are just the ones I quickly noticed, I am sure that there are many more.
1. Medicare is NOT an entitlement. The people that paid into it were to receive it back as a retirement investment that the government was overseeing. Therein lies the problem LBJ and Clinton both raided the money from the SS fund. LBJ used it to fund his social program for the welfare recipients based on the belief that if we support them, they will become outstanding citizens. Instead, it did the opposite, they became dependant on the system thereby becoming dependant on the Democratic party to provide for them for generations to come. Clinton used the SS funds to pay off the national debt. thereby making himself look good.
2. The Dems have made it available to any and all. This makes those that have never paid a dime into it eligible for it. But those of us that are citizens must be eligible to receive it, by working for a certain amount of quarters. If you don’t contribute by working that set time, then you don’t get anything. But those that come to this country are automatically eligible without having to pay into the program. My (very liberal) mother was furious that those that were illegal immigrants were getting more SS than she was, while she worked for decades and contributed to the SS fund, they paid nothing. They have also expanded the program to anyone that has a handicap including minors. They get to double dip the program. Get your child a diagnosis of ADHD, then you get government money every month for them, and then on top of that, the government pays you to care for them. This is in addition to their welfare check.
2. Paul was not thrown into the water, he was thrown in jail. Jonah was thrown overboard at night, to be swallowed by the large fish.
There are many steps that will need to occur along the way before the United States goes bankrupt.
The real end point will not happen until the cost of servicing the debt exceeds the revenue collected. The United States has operated under the notion that the amount borrowed is not critical because there is no intention of paying it back, only to service the debt.
Ping
The US is not going bankrupt. Its not close to going bankrupt. The reality is the US dollar is very strong. And the more we produce the stronger it seems to get. Our debt matters. But it does not matter like your own personal debt. Its more like Pete Rose. When Pete Rose runs out of money he puts himself up for sale somewhere. And he gets paid to produce signatures, often on merchandise. It works as long as people want Pete Rose signatures.
America is the same. As long as people, countries, businesses want dollars we can produce as many as we want, within some reason, and they will give us stuff or their currency or gold or bitcoin for our dollars. You can decide if we make too much by comparing the exchange rates on various currency around the world.
As long as the Euro has existed, its ranged between .88 and 1.45 to the dollar. Right now its about 1.14 dollars to 1 euro. So its generally in the middle. The Yen has gone from 85 to 120 Yen to a doll. Now its about 112. Canada’s dollar is worth about .76 cents right now. So as long as the dollar is comparable to other currency that you may wish to chose instead of the dollar, there is no fear of the US debt.
This is not to say that States or other countries can do the same thing. The US government is very large and has a relatively stable dollar. So people have learned to depend on it during troubled times. Also, its a safety in numbers thing. As long as everyone is in the same boat, they will not flee the currency that they depend on.
Also, as bad as the US is, we are better than Europe as a whole. And we are better than Japan. China demonstrates the problem with strong currencies relative to everyone else. China is forced to devalue its currency to keep its products cheap. If China were to allow its currency to rise, China would lose trade because its products would be too expensive. And Chinese factories would shut down.
By the way, this does not work with States or people. It does not even work with countries within the EU or small countries outside the EU. For example, during the last financial crises, Switzerland, which is not in the EU had a crises. Their currency did not suck. So it became very strong. So Switzerland could not sell anything to the rest of the world. What did they do? They printed money. Argentina is having the opposite issue. Their money is becoming weak, so they have to buy their own money back.
So you don’t have to worry about our debt. You have to worry about our exchange rate.
The Banksters - always.
States can go bankrupt but not the U.S.A. The U.S.A. would default and repudiate debts. That’s what will happen, if the Democrats get a congressional majority in the midterm elections.