Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

Why We Are Un-Governable

IMG Auteur
Published : January 26th, 2013
431 words - Reading time : 1 - 1 minutes
( 4 votes, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Editorials

Once a country's total debt exceeds a certain level, the required interest payments become a headwind, making economic growth virtually impossible. Since economic growth is a foundation to political stability, excessive debt pushes a free society towards the limits of governability. This is now the case in most of the developed world. As a consequence we are quickly losing our ability to democratically govern ourselves.

We are irresponsibly and expediently creating infinite amounts of the world's reserve currency out of thin air in desperate hope of creating short term artificial economic growth. Unfortunately, this simply amounts to running up the balances on an unlimited credit card, instead of controlling ourselves like adults. When we do this we stop prioritizing our needs versus our wants. Like a spoiled child, the public quickly becomes conditioned to getting what it wants and expects, versus caring about the costs and consequences.

Politicians are then left the intractable problem of disciplining an unruly household wanting more, when there is less and less available within the sovereign household purse to give. Unfortunately, our pandering political parents have been no better and have been using the debt build up to:

  • Build a global military empire that costs about a trillion dollars a year,

  • Create cradle to grave welfare state that costs a trillion dollars a year,

  • Develop an aristocracy of bankers and politicians who, because they get first crack at those newly-created dollars, have become all-powerful. In today's America, Goldman Sachs, the Treasury Department, and the Fed are just divisions in the same profit-maximizing organization.

Our politicians are no longer leading. Out of campaign finance necessity, they have become obedient followers of party doctrine, political polls, and powerful media masters.

Additionally, excessive debt produces political polarization and gridlock, which makes fiscal policy impotent. This leaves monetary policy as the only remaining tool. A tool the political process does not control, but unelected central bankers do.

We will likely continue to be delusional and hide our problems from ourselves, but we can no longer hide the effects. As a consequence the public has lost confidence in the system and we now have an insidious Crisis of Trust. A Crisis of Trust in our leadership and the system.

As a consequence, every major country will now have no choice but to monetize its debt going forward.

Expect the results to be:

  1. Currency Wars
  2. Rising Political Instability
  3. Rising Inflation (currency depreciation)
  4. A Bond Market Debacle
  5. A Crack-up boom followed by devastating collapse of the U.S., Europe, Japan


25 Minutes, 31 Slides

Data and Statistics for these countries : Japan | All
Gold and Silver Prices for these countries : Japan | All
<< Previous article
Rate : Average note :5 (4 votes)
>> Next article
Mr. Long is a former senior group executive with IBM & Motorola, a principle in a high tech public start-up and founder of a private venture capital fund. He is presently involved in private equity placements internationally along with proprietary trading involving the development & application of Chaos Theory and Mandelbrot Generator algorithms.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
MOST READ
TOP RATED
The Gold Bug (Edgar Allan Poe) - Treasures and Gold Fever - Edgar Allan Poe  (13)
Discovery of Governmentium, the heaviest known element - Food for thought - Hat Trick Letter  (19)
The US Constitution and Money - Michael S. Rozeff - Mike S. Rozeff  (8)
Introduction to Economic Sophisms - Frederic Bastiat  (4)
Most commented articles More... 
MOST COMMENTED
100 Items That Disappear First in a Disaster - Beans Bullets Bullion and Bible - 24hgold  (17)
Most commented articles More... 
Latest Comments
In broadcast to India, GATA secretary says free market in gold woul...
12:07Chris A.1
Only a bimetallic standard would work with Gold and Silver. Gold alone would be a prison for the 99% as only Elites and Central banks own any of si...
‘Real’ Performance Comparison
26 MarChristopherbalz
Question: In the method of figuring inflation referenced, what is the rationale for adding population growth to productivity growth? Sugge...
100 Items That Disappear First in a Disaster
23 Markevthorne
68, 69 probably not that safe - particularly if you're growing your own vegetables - keep a Maine Coon cat instead: does the job automatically.
Farage Interviews Le Pen: “Prison of the EU”
21 Marneville1
BRITANNIA RULES THE WAVES AND NOW BREXIT WAIVES THE RULES. GO FOR IT FRANCE AND RID YOURSELVES FROM THE CHAINS OF IDIOTS. NOT SIN...
How the Fed Operates — And Why It's a Problem
20 Marramasart
In a nutshell, the Fed facilitates the theft of the value of the dollar, as they can control the increase in supply which at the same time inverts ...
How the Fed Operates — And Why It's a Problem
20 Marneville1
With all due respects for outlining how the crooked american Fed works or should work. From all our research we find the following the Fed...
Sparta - Gold prohibition in a collapsing economy
18 Markevthorne
You've answered none of the authors points: your comment is flat rubbish.
America Too Broke to Fix Crumbling Infrastructure? “Bridges, Roads,...
16 MarCameron Waugh1
Just like the leaders of the Bolshevik revolution were not Russians, those formulating belligerent US foreign policy are not Americans, and they ha...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS