CSTNews

http://www.cstnews.com/bm/family-and-finances-common-sense-for-today/finances-debt-economy-crash-bubbles-and-common-sense/whats-in-your-financail-future-part-1.shtml

What's in Your Financial Future? Part 1

That flapping you hear in the distance is the chickens coming home to roost. We have lived selfish lives, forgotten God, broken rules of common sense, spent money we did not have to impress people we did not like, and lived as if there were no tomorrow—but there is a tomorrow, and it will be a bleak tomorrow.

By

[an error occurred while processing this directive]

Edit page New page Hide edit links

That flapping you hear in the distance is the chickens coming home to roost. We have lived selfish lives, forgotten God, broken rules of common sense, spent money we did not have to impress people we did not like, and lived as if there were no tomorrow—but there is a tomorrow, and it will be a bleak tomorrow.
            
My desire is not to scare people but to warn them of what I believe will be the  most difficult time in American history. I wrote in a 1999 book that I am 100% convinced that a total collapse of the economy is in our future. I still believe it. The national economies of this world are ready to explode. They are like a boy standing up to his knees in gasoline, flicking a cigarette lighter. Moreover, I’m afraid you and I will be burned along with everyone else.
   
I am convinced the glory days are gone forever. America has seen her best years. For the first time in history, young couples are not enjoying the standard of living their parents did. In fact, 70% of people in North America have seen their standard of living fall.
   
They also have no confidence that Social Security will “be there” when they reach retirement age—and what may be there will be only for the neediest. They see middle class incomes going down and no job as secure. In my opinion, their fears, concerns, and pessimism are justified although not inescapable for individual families.
   
You should take control of your life and plan for very difficult days ahead. Pay off your credit cards and make double payments on your mortgage if possible. Cut back on unnecessary spending; downsize your home and automobile. Do you really need such a large home and expensive car or are you trying to “make a statement”? That statement? “I am successful.” However, success is not measured by toys and things but faith, friends, and family.
      
Our national debt is almost 9 trillion dollars! That was “trillion,” not billion. It is difficult for us to comprehend such numbers, but let me try to help you understand. If you had started, at the birth of Christ, spending a million dollars each day and faithfully spent one million dollars per day, it would take you until 2704 to spend only one trillion! Keep in mind that our official debt is more than 9 trillion dollars! That means every man, woman and child in the U.S. owes more than $29,000.00!
   
Moreover, here’s the “rest of the story.” We owe far more than 9 trillion because there are trillions and trillions of dollars that are “off the books.” These are made up of federally unfunded pension obligations—government employees, military, and Social Security. There is no profit in detailing how we got in this deep well; we all know how we got there. The question is: how do we get out? (The first rule to follow when in a deep hole is to stop digging.) How do we pay off our debts and get out of the hole? The answer is “painfully.” Others declare that it cannot be done.
   
When a person or a nation owes more debts than can be serviced, no one will lend them more money. Of course, individuals would be in prison for fraud if they borrowed money they could not repay, but governments don’t go to prison—and not enough politicians do.
   
Governments usually do one of two things when they get into a “mess” as we are in. They repudiate all obligations or print worthless money day and night. The first will not be done because it would result in riot, rebellion, and revolution—literally.
   
Think of the reaction if retired military men, welfare recipients, and Social Security beneficiaries were told—No more money! They would storm Capitol Hill and the White House and might bring back the guillotine, used so efficiently (and ruthlessly) during the French revolution.
   
No, the politician’s answer to our horrendous debt will be to run the printing presses day and night. Then inflation and interest rates will race each other for the moon. Our national debt will be paid off with worthless dollars. You have always wanted to live in a million dollar house, and you will—the same one you live in now. Of course, it may cost $100.00 to purchase a newspaper!
   
While pessimism is not my nature, I see a dark cloud on the horizon. First, a major Depression followed by massive inflation. Informed Americans should make plans for some very difficult years ahead.

Tags: ,