Americans are spending massive amounts of borrowed money.
The money is supporting a significant percentage of Americans; perhaps 25%.
ANYTHING which reverses the borrowings will SIGNIFICANTLY impact the standards of living of all Americans, especially the 24% which are most directly being supported.
The economy overall would be severely impacted by the sudden decline in the prospects of 25% of our population if the borrowing ended. The stock market would plummet.
Based on the above reasoning, our borrowings CANNOT be significantly curtailed. The alternative is exactly what we see happening; the government is printing money to loan to itself and inflation, which is at 10%, is climbing rapidly. Hyperinflation is virtually a certainty with the purchasing power of savings, investments, and wages due for dramatic declines.
There will be those who maintain their wealth by purchasing assets with lasting value. It will be deemed "unfair" for them to have profited and their assets will be taxed to insure that they bear a share of the burden.
The rapid decline of the standard of living in the U.S. is not a pretty picture but it is exactly what happens to individuals who live beyond their means.
Didn't I read that 41% of the money the government is spending today is borried?
"Based on the above reasoning, our borrowings CANNOT be significantly curtailed. The alternative is exactly what we see happening; the government is printing money to loan to itself and inflation, which is at 10%, is climbing rapidly. Hyperinflation is virtually a certainty with the purchasing power of savings, investments, and wages due for dramatic declines."
Someone else called this a 'liquidity trap.'
"There will be those who maintain their wealth by purchasing assets with lasting value. It will be deemed "unfair" for them to have profited and their assets will be taxed to insure that they bear a share of the burden."
My son and others that I know have invested heavily in real estate and I worry that these 'visible' assets will be confisticated and re-distributed....I also worry that at that point many Americans will be suffering so much that they will agree with punishing the 'greedy' and support the confistications.