In the early stages of capitalist systems, interest and principal can be serviced out of the debtor’s cash flow. In the final stage of “mature capitalist systems”, they cannot.
Capitalism’s final stage is what Minsky calls “ponzi-financing”, when debt payments can only be made by additional borrowing. This is what the US, the UK and Japan are doing today, having to borrow against tomorrow in order to pay yesterday’s bills.
For 50 years, not one Dollar of new debt created by the US government to fund the activities it does not wish to tax for has been repaid. The debt has simply been “re-financed” with new debt being sold to retire the existing debt.
At some point, the end finally arrives. Ponzi-financing cannot service debt forever. Investing in unhedged paper assets is the bet that it can.
I only have a few agenda's on this blog, which is growing and preserving my wealth and helping people see that what I am just starting to see. What is the use of creating wealth if a government can destroy it, tax it, steal it from its people. It is becoming more and more clear to me that government is not our answer. It is not a right(Rep.) or left(Dem.) fight, it is about believing in the America people and that we do not need a group of people telling us what decisions are good for us. Both parties have grown government to bigger and bigger proportions. It comes down to one word "FREEDOM"!!! Through out history, governments have oppressed it's people. There was a reason our founding father wanted us to question our government:
"Any people that would give up liberty for a little temporary safety deserves neither liberty nor safety." - Benjamin Franklin
The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government." - Patrick Henry
"Resistance to tyrants is obedience to God." Thomas Jefferson
"Government is not reason; it is not eloquence. It is force. And force, like fire, is a dangerous servant and a fearful master." -George Washington
"A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicity." - Thomas Jefferson
So I ask you...Which pill do you pick?
If you picked the Red Pill here is where to begin:
Gold and Economic Freedom by Alan Greenspan
America's Impending Master Class Dictatorship by Stewart Dougherty