The Blog of julianhorack

Capitalism is great in theory but sadly what we have today is not pure capitalism, from the Austrian school perspective. There is currently too much reliance on debt, which means it's based on printing money out of thin air.

When asked how far the US government has plunged into the red, many fiscally-conscious Americans will tell you the national debt has reached $37 trillion. As distressing as that official number is, America’s true fiscal situation is even worse — far worse. According to a barely-publicized Treasury report, the actual grand total of Uncle Sam’s obligations is more than $151 trillion.

Sadly, USA has leaned on the money printer massively since they went off the gold standard in the early 1970s. It was supposed to be temporary but is still with us. The US dollar is backed by nothing, except maybe an artificial confidence, propped up by a massive military, which is funded by the same imaginary money.

The two largest examples of mandatory spending are Social Security and Medicare. Those old-age programs are now well within sight of a crisis that’s been warned about for a generation: According to the latest report from their program trustees, Social Security and Medicare trust funds are now just seven years from insolvency.

Well, in seven years USA government obligatory spending power runs out and they will no longer be able to pay their social security and medical benefits. This is due to an aging population, among other things. Ironically the crisis of an aging population and declining demographic is hitting much of the planet, from USA to EU to Japan and China. And all of these nations are going to buckle under this same problem.

Because the ratio of taxpaying-workers to beneficiaries is in steady decline — from 5.1 in 1960 to 2.7 in 2023 — Social Security payouts have exceeded revenues for the last 15 years. As a result, the Social Security and Medicare trust funds are set to run out in 2033. Under the law governing Social Security, payouts that year will be limited to program incomes — which will translate to a sudden 23% cut in payouts.

And this problem is not small. It's big enough to collapse the entire economy of each of those countries. Which means global economic collapse. To avoid that, the USA will lean on the money printer still more, trying to kick the can still further down the road by borrowing from their future selves and placing their future selves in bigger and bigger debt. This is obviously unsustainable and must logically collapse under its own weight.

It is programmed to collapse. And the timeline is seven years from now in USA. Will we even survive that long before the economic collapse? It's looking doubtful. This type of collapse is sometimes what leads to war. We are actually already there, so the seven year forecast may be generous. It looks like this won't end well for the USA, and perhaps the world.

Uless we end this fake financial system based on debt and hijacked capitalism, and replace it with something that works, like a resource-based economy backed by assets like gold or other items, we will remain enslaved as a species to a criminal enterprise that steals our life force in the form of money. It's debt-based slavery of the modern kind.

Blockchain, and cryptocurrency like Bitcoin, are possible tools to replace the current system, as long as they too aren't hijacked by the wealthy elite who will do anything to cling to their power, regardless of the destruction of humans and humanity as a whole.

Reference: https://www.zerohedge.com/economics/think-uncle-sam-owes-37-trillion-its-far-worse

Image: https://pixabay.com/photos/money-coins-gold-hard-money-1477064/