As a warm-up, man-in-the-street interviewer Mark Dice stops Americans on the sidewalk to offer them a free chocolate bar or a free 10-ounce bar of silver worth $145. Click here to see which bar Americans chose.
Imagine you are married to a spouse who is the primary family wage earner and you enjoy a relatively high standard of living. Year after year goes by, you open the mail and see credit card bills being paid down. You know you are living on credit, but the debt is tolerable.
Suddenly one day you find yourself at your spouse’s office and you open the mail and you find your spouse has additional hidden credit card bills sent to the office and they total five times more than your spouse’s annual income of $250,000 a year. That’s $1,000,000! You faint straight away.
I have just explained the federal budget to you. According to the US Debt Clock, the public is told the National Debt is ~$28 trillion when if GAAP accounting (Generally Accepted Accounting Practices) is employed that include long-term liabilities, the real public debt exceeds $100 trillion. The CoronaMan Cometh :... Buy New $0.99 (as of 05:14 UTC - Details)
Are these numbers making you feel queasy? If every American paid the US government $84,938 (about $254,000 per household of 3- source US DEBT CLOCK) we would be out of this debt mess. Your government racked up this debt on the aggregate credit card every citizen shares. If the White House shared these numbers at a press conference, America would have a nervous breakdown.
You might want to loosen your neck tie and mop the sweat off your brow. The interest paid on debt per American adult is now $15,074 per year.
A totally false economy: $100 trillion of debt and counting
You may want to duck your head when you read just how phony the American economy is. Enter economist John Williams (Shadowstats.com Commentary 983-B, April 2019):
Based on generally accepted accounting principles (GAAP), the headline net obligations of the Federal Government, including the unfunded liabilities valued in today‘s dollars, have reached an order of magnitude of well over $100 trillion, including $22.0 trillion in existing U.S. Treasury debt (the largest amount of sovereign debt in the world). That $100-plus trillion needed in hand to cover existing U.S. obligations not only is five-times greater than the headline U.S. GDP, but also tops current estimates of the aggregate global GDP of about $85 trillion! (Exclamation point mine) Indeed that circumstance is unsustainable and uncontainable.
According to Williams, the point of unsustainability was reached way back in 2004. Everything has been papered over since then.
The gist of the imparted wisdom was that if the Fed or federal government ran into economic or financial-system difficulties, the federal budget deficit and the U.S. dollar simply could be ignored—or sacrificed. Ignoring them would not matter, it was argued, because doing so would not cost the incumbent powers any votes. Yet, the U.S. dollar and the budget deficit do matter.
There is no chance of the U.S. government covering its total net present-value obligations in excess of $100 trillion.
Why not raise interest rates on banked money?
Fire Your Doctor! How ... Best Price: $6.40 Buy New $1.99 (as of 11:00 UTC - Details) Savers are losing the value of their banked money by up to 5-9% per year depending upon which criteria used to determine the cost of living. Current interest earned on savings is less than one-half of one-percent. A way to fix that is to raise the interest rate on saved money to let’s say 5%. Then savers wouldn’t lose their shirt. Savers would then have a hedge against inflation.
But in so doing the interest rate on the National Debt of $22 trillion would rise from $378 billion to $1.1 trillion, which could not possibly be paid without onerous tax increases.
Yes, savers would get 5% interest on their banked money. Americans have ~$10.56 trillion in savings accounts. At 5% interest that would put $528 billion in bank accounts of Americans annually instead of the ~$10 billion they now earn.
But then interest rates on home mortgages would rise above 5% (now about 3.0% on a 30-year mortgage) to let’s say 7-8%. (The 5% would be what banks pay to borrow money from the Federal Reserve and then the lending banks add their profit margin, maybe 2-3%). Instead of paying 3% on a $300,000 home loan ($9000 a year), new home buyers would pay 8% ($24,000 a year). This then crashes the demand to buy homes because loans are unaffordable.
Economist Peter Schiff recalls in the 1970s when the value of the dollar dramatically declined as it is now, Federal Reserve Chairman Paul Volcker raised interest rates on borrowed money to 20%. Banked money then generated a large return. That saved the dollar then.
But paying 25% interest on a home mortgage or auto loan would paralyze the US consumer economy today. Says Schiff, the federal government is now creating 60-cents of productivity for every dollar spent. This is a false economy.
Sell off US assets
The US also owns ~$158 trillion of assets. The US could sell off some of those debts and pay down the $28 trillion headline national debt, but not the $159 trillion of unfunded liabilities. But of course, this isn’t done because evil doers want to crash the economy.
Why not raise the price of gold and silver? Because there are evil intentions
James Rickards, an authority on finance, says the Federal Reserve bank could easily restore value to the US dollar by raising the price of gold to $5000 an ounce ($1719/ounce today), and the gold the Federal Reserve bank gold would be worth over $1 trillion. Rickards notes this was done twice before, in 1933 and 1970. So, there is historical precedence. Nearly Natural Golden ... Best Price: $59.79 Buy New $64.99 (as of 04:08 UTC - Details)
But as I point out below, the Federal Reserve, US Treasury Department and other entities are attempting to intentionally crash the US dollar in a globalist “reset” to take over the world. The very fact the Federal Reserve, which holds over 13 million ounces of gold and the US government holds 261+ million ounces of gold, doesn’t revalue gold and silver upwards to rescue itself is indicative of evil intentions.
Gold production this year is 120,965,426 ounces and gold demand exceeds supply by 163,569,064 ounces. There is a gold rush going on that is unreported.
Silver is in high demand and there now are huge shortages of silver reported. Yet silver remains at about the same price because its spot price is determined by speculative investments in silver futures that continually manipulate the price of precious metals downward so there is no competition for paper money from gold or silver. Silver is also an industrial metal used in solar panels and electronic circuitry. Any increase in the value of silver would increase the cost of these products. So, there is pressure to keep a lid on the price of silver despite low supply and increased demand.
Paper money shunned
US paper money is now shunned by retailers and consumers because it allegedly harbors and transmits coronavirus. (This is a totally bogus idea. While paper money does harbor various bacteria and viruses, no outbreak of any infectious disease has ever been attributed to currency handling. It’s absurd to think paper money preferentially selects the COVID-19 coronavirus to spread from paper dollar to human hand to human lung. There are many more potentially lethal microbes on paper money than COVID-19, yet there is only COVID-19 phobia.)
The US government appears to be operating in league with the World Economic Forum in Europe to crash the value of the US dollar and coerce Americans into abolishing paper money and coin in favor of a digital money account at the US Treasury Dept. that would then be a depository for a guaranteed income. Then the US Treasury Department would know in real time of your purchases and could deny payment for purchasing decisions such as the purchase of an automobile (electric over gasoline), church donation (denied because churches are racist, hate groups).
There is also a contrived shortage of coins. In preparation for digital currency, authorities are getting Americans used to the idea of paying for transactions without using paper money or coins.
Ways to retain wealth are pretty slim these days. It will take time for Americans to lose faith in US paper money.
Whatever way you respond to all this financial doomsday talk, don’t be so foolish that you select a chocolate bar over a bar of silver.