In the USA living is comfortable and convenient. Relative that is. We seldom see hungry barefoot children begging on the streets. I know this is not true for the entire planet. The USA is a fine place to live, but our current environment has come at a cost.
Our life of luxury is a story of magic beans. For several generations we have been financing our lifestyle on debt. The US government has been spending money borrowed from the future.
The question of how long can this magic bean (debt) system survive has been a topic of discussion for my entire adult life. As individuals, we can’t live on debt alone. Sooner or later, our ability to borrow will disappear. We however are not a government that issues fiat currency at will. The government buys its own debt or trades debt with other bankrupt governments. The system seems to be spiraling downward.
We will continue on this convenient path until the fiat currencies collapse. This will happen when confidence is lost..
Last evening I saw an advertisement offering $16,000 off on the purchase of a new vehicle. It could be financed for up to seven years. Like the government individuals can affor the payments if they reach into their future and spend future earnings.
The point is our current comfort and convenience is only possible through debt. Yesterday President Trump signed a new massive spending bill financed by our children’s future. Below is an excerpt from the Washington Post.
“Trump ripped into the $1.3 trillion funding package in remarks at the White House shortly after 1 p.m., calling it a “ridiculous situation,” filled with overspending yet lacking enough money for his border wall or a deal to resolve the future of the young, undocumented immigrants known as “dreamers.” He said he was only signing the bill because it contained a boost for the military. “
How long can this go on? The question remains.
Here is today’s beauty.
