One of my Libertarian friends recently made this post on Facebook:
This makes me angry. So, we’re going to withhold our help from countries that are struggling economically? Germany and France are close to bankruptcy. They are both our allies and have fought terrorism with us, but we aren’t going to help them if they are attacked? Not cool.
I, too, was discouraged; but not with Trump. I was discouraged this politically active soccer mom, doesn’t get it! She is right: Germany and France are close to bankruptcy. So is Spain, Italy, Portugal, Greece, Belgium and most other western developed countries. The same is true of the United Kingdom.
What she is missing is us … I mean, the U.S. Before the Senate Budget Committee, on February 25, 2015, Dr. Laurence Kotlikoff, Professor of Economics, Boston University, said the following:
“Our country is broke. It’s not broke in 75 years or 50 years or 25 years or 10 years. It’s broke today … This declaration of national insolvency will, no doubt, shock those of you who use the officially reported federal debt as the measuring stick for what our country owes … The CBO (Congressional Budget Office) is, in my opinion, deliberately misleading the public and Congress about our nation’s true fiscal condition. The size of the U.S. fiscal gap–$210 trillion—is massive. It’s 16 times larger than the official U.S. debt, which indicates preciously how useless official debt is for understanding our nation’s true fiscal position.”
In a March 2015 interview on USA Watchdog, Dr. Kotlikoff implied he didn’t think the senators understood his point (begin at minute 16:45, http://usawatchdog.com/financial-system-will-collapse-just-a-matter-of-when-laurence-kotlikoff/).
We have been deceived. The present value of the dollar is based on an elaborate scheme to present everyone else as broke, except the country behind the reserve currency. The scheme has worked. My Libertarian friend has been faked out. She thinks we can continue, as usual. She thinks her kids will grow up to the life she has experienced. She thinks the dollar will still be our currency five years from now. She thinks it’s our job to defend our Allies.
In the 80’s, 90’s and early 2000’s, the U.S.A. was partying as if we were on a Caribbean cruise. In 2007, we found ourselves hitting an iceberg in the Antarctica. As our boat was listing, the U.S.S. Federal Reserve came to our rescue. Instead of saving us, they fired three torpedoes (QE1, QE2 and QE3).
We can see the torpedoes racing toward us. Some of us have gotten into lifeboats. Others are listening to the captain say there is nothing to see, here. (For comic relief: https://www.youtube.com/watch?v=rSjK2Oqrgic.)
My Libertarian friend needs a sense of urgency. We’re broke.
“Dollar” Bill is a real guy, with real knowledge when it comes to our nations financial situation. His chosen profession precludes him from “unmasking”, so we will simply refer to him as “Dollar” Bill. A real life case of names and faces being changed to protect the innocent!