Recently, a headline caught my attention. Government spends 8 times more than it took in, in the month of March. Let me ask you something, what would happen to you if you did the same? Better yet, lets suppose you have done this for the past year, what do you think you’re situation would be like? You know …..spending 8 times more than you’re bringing in? I think it is safe to say that unless you have a big nest egg, or a rich uncle to bail you out, you would probably be Bankrupt. So logically, taking this to the next conclusion, why do we think the government can do this and not expect the same result?
Too be sure, the government has a number of tools you or I do not have. They have a printing press that they can use at will, where you and I would be hauled off to Jail for counterfeiting. Furthermore, we have been living like this for a long time racking up huge debt that will never be paid.
This past week end we had some great political theater. We were all threatened by a government shut down because our politicians could not, or can’t, agree on cuts to our bloated government spending. We had trouble coming up with anything meaningful and instead passed this scam of a reduction that was going to really help our debt / spending problem. We were then treated to more media reports of how gallant the politicians were in making these cuts.
Okay so let’s cut the crap. The fact of the matter is, we are hopelessly addicted to debt as a country and do not have the will to make the tough choices which need to be made. Instead, we are going to pretend we are doing something meaningful while we continue riding the oblivion financial express train to disaster. Make no mistake, the laws of finance have not been repealed for us.
Let me just conclude with this, I know how this ends. It ends badly for both you and me. At some point we hit the wall just as you are now seeing with some European Countries. It is important for us to be vocal and in our local politicians face. Be polite but insistent. The current structure will have to change as the path we are on is not sustainable.
In the mean time you might want to make some preparations. The first thing you need to do is Think the Unthinkable..More on this in our next post.