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 :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.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Way Out
31 MarGypsy1
James, you're wrong to think the people on earth couldn't THRIVE ~ live well, eat well, enjoy great lives, advance mankind ~ with the resources we ...
Time to Eliminate Pilots in Airc...
30 MarShadowdoo1
Hi Mish, Sorry pal, I would rather take the door off than give the controls to some moron on the ground. Especially with that nitwit in t...
Gold: April 2015 Update
30 Marovertheedge
"I have been invited to speak at the Mines & Money Mauritius Conference in June 2015 again. If you would like to join you can receive 25% off your ...
Greece Needs the Magic Formula t...
30 Marovertheedge
Wow dude. "Idiocracy" is obviously not just another dumb-ass movie. I admit that I should have recognized your devotion to Brawndo (it has ...
Signs that America Will Hit the ...
30 MarFalconflight
I'll tell you what signals a return of the Dark Ages....the growing, almost hysterical screed again in the West that those Jews are responsible for...
Misunderstanding "Peak Gold"; Go...
29 MarTed S.1
Hi Mish, You make a good point about the difference between commodities and gold. It's a great point of discussion to counter people who ar...
The Finanser Interviews Jon Matonis
29 Marovertheedge
"In late 2009, I got introduced to Bitcoin by a random email from Satoshi Nakamoto. I didn’t give it much thought at the time and then 3-4 months ...
Gold Effect on Mining & Shale Wa...
28 Marneville1
Thank you Jim Willie for your open and candid report on some of the most urgent matters agrevating this economically and war torn world thanks...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
IAMGOLD(Ag-Au-Cu)IMG.TO
Iamgold in talks to buy AngloGold's stakes in two Mali mines
CA$ 2.47+4.66%Trend Power :
Exploration and drilling
Caribou CopperCKR.V
Signs LOI to Acquire Northern Extension of Buckingham Graphite Project
CA$ 0.13+0.00%Trend Power :
Corporate news
VMS Ventures(Cu-Ni-Zn)VMS.V
VMS Reports Update on Reserves and Resources at Reed Mine
CA$ 0.25-1.96%Trend Power :
Corporate news
Alto Ventures(Gems-Pl-Ag)ATV.V
Recovers Kimberlite Indicator Minerals on the West Fisher Claims Northwest of the Pikoo Diamo
CA$ 0.06+9.09%Trend Power :
Corporate news
Timberline Res.(Cu-Le-Zn)TLR
Timberline Closes Transaction to Acquire Talapoosa Project Option and Files Technical Report
US$ 0.61-6.15%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
Éléonore Achieves Commercial Production, Effective April 1, 2015
CA$ 23.68+3.32%Trend Power :
Production
Terra XTXR.V
View PDF
CA$ 0.36-7.79%Trend Power :
Corporate news
Terra XTXR.V
TerraX drills 5.00 m @ 5.29 g/t Au, inclusive of 3.00 m @ 7.98 g/t Au at Yellowknife City Gold
CA$ 0.36-7.79%Trend Power :
Corporate news
INV Metals(Ni)INV.TO
Announces Management Changes
CA$ 0.14+0.00%Trend Power :
Corporate news
Moly Mines(Ag-Au-Cu)MOL.AX
Moly Mines Reports Acting CEO Contract Extension
AU$ 0.07+0.00%Trend Power :
Corporate news
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.