Friday, October 30, 2015

Debtor Nation

I’m not paying the national debt.  My children will not either.  And if I do things right, their children won’t either.

You see, only the government can saddle its citizens with debt.  It’s worse than spending other people’s money; it is literally borrowing based on future projected earnings of other people’s money.

If I did this, I would be in prison for fraud.  But since the government makes the rules, they can also make it so that nothing they do is illegal.

In the simplest terms though, I do not owe a single solitary penny of the national debt.  Neither do you or any other productive taxpayer.  This is because the government is, in and of itself, a corporation.  As such, it has the rights of a person and therefore only the government owes the money.

But you want to know what the ironic thing is?

The government owns more of its own debt than China.  Yes, you hear about how China owns billions of dollars of the national debt.

But the US Federal government owns more.  Somewhere around two trillion.  If we include the Federal Reserve, that number hits damn near close to 5 trillion.

So the truth is, the United States is taking out loans on itself.  Like the Ouroboros, it is feeding on itself but instead of diminishing, it just keeps on getting bigger.

And nobody seems to be none the wiser.  Everyone just looks at the big numbers failing to realize that much of the national debt could be wiped out tomorrow by simply defaulting on what the government owes itself.

It doesn’t matter anyway.  The national debt will not be paid back.  The US government will default on all of it sooner or later.

Will the economy collapse in the process.  Probably.  I’m not financial expert myself, but too much of our economic activity is tied to government services.  So not being able to get reimbursed properly for services rendered does put a damper on things.

My advice is to get out of businesses which cater to the Federal government, especially ones whose sole source of revenue comes from government contracts.  Also, shred your credit cards and start saving money.  Invest in rental properties if you can.

But that is amateur, common sense advice.  As for the big picture, always remember that total collapses are gradual, not spontaneous.  Rome wasn’t built in a day but it also didn’t collapse in a day either.  It took generations before it was finally abandoned to the wolves.

The same will be true of the United States given our current path.