To the editor:
I missed a very important 13-second clip from “60 Minutes” this Sunday with Scott Pelley interviewing Neel Kashkari, president of the Federal Reserve Bank of Minneapolis.
Pelley: “Can you characterize that everything the Fed has done this past week as essentially flooding the system with money?”
Kashkari: “Yes, exactly.”
Pelley: “And there’s no end to your ability to do that?”
Kashka: “There is no end to our ability to do that.”
Folks, that’s one hell of a scary statement as they can certainly flood the system with as much “money” as they want but they cannot do that to “no end.”
Once the people believe that their life savings, denominated in “money/dollars” is not worth as much it is game over. This is not a game it is people’s lives and life savings they are destroying and actually admitting to such destruction on national TV.
You cannot cure this unimaginable debt problem by creating even more debt by handing it out for “free,” or canceling student debt, or giving away “free” college. Nothing is free! Somebody pays. Debt on one side of the ledger is somebody’s asset on the other side of the ledger.
Our currency has not been backed by gold since 1971 when Nixon closed the gold window. Throughout human history never has a fiat currency lasted without being backed by something of value. Nowhere in the world is a currency backed by gold now.
World debt, that we know of, exceeds $257 trillion and that excludes government promises like pensions, SSI and Medicare in the U.S. that adds another $100 trillion or more. This amounts to around $35,000 for every one of the 7.7 billion and growing people on the planet. Mathematically this is impossible to repay and it’s not just the USA, it’s the entire world. Sooner or later there will be a painful “reset.”
I will leave you with an important quote to take note:
“I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Unless you are willing to surrender your children and your country to galloping inflation, war and slavery, then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money.“ — Howard Buffett, 1948, father of Warren Buffett.