- Borrowing to pay the interest on borrowed money and the curse of perpetual debt is upon you.
- Brutus
For those of you that might confuse the above Brutus with the Caesar assassination, it is not. It is the pseudo of an American revolutionary in response to the Federalist Papers seeking to ratify the offered constitution. His prophecy among other flaws, mainly the Supreme Court, was not only a warning, but a correct forecast.
During the give and take in forming a government, one debate was government's need for revenue and the options to obtain money and still keep a new currency strong. The wisdom of our first president has been pushed aside by foolish, egotistical leaders. Washington said, "Use debt as sparingly as possible." Hamilton was in favor of a central bank. He thought there is a positive in a small perpetual debt, but one that can be controlled. He eventually got his way to have a central bank, but compromised on fiat currency. The gold standard acted as a blockag to debt. This is why our country grew to be the strongest in the world. The list of foundings against debt is all our greats: Franklin, Jefferson, Adams and Madison to name a few. The list for debt were individuals that put their self-interest before the nation. Gladly, they loss out in the debate, but that does not mean that they gave up.
Today
By exporting jobs and importing more than exporting, the debt began to grow. When President Nixon cut the last tie of the gold standard in 1971, fiat arose like Dracula after dark. Hamilton, a writer for the Federalist Papers would be wrong and Brutus, a name chosen to end tyranny, is right. The debt is not just a snowball rolling down a mountain, but an avalanche. Dear Reader, our debt is greater than the combined GDP of China, Japan, Germany and the UK. It is so mind boggling to consider that every week we add $196 billion just from interest. This correlates to $6.4 billion per day and $268 million per hour. Crazy as it sounds, but the time that it takes to read this section, has our debt climbing by $74,401 per second. The military and the Federal Reserve is bankrupting our nation. When your deficit spending grows by 8% and your economy by 2%, you are losing every year with intesest! Any candidate that says, "I'm in favor of tax cuts" should be immediately disqualified for office. Look around! We have excess immigrants sleeping on streets in all of our ciries. They are in competition for space with homelessness. Homelessness is a growing enterprise (poor pun) at 10%. Almost every week this post adds info on companies that are laying off workers or worse, closing down.
Not Just Retail
Our leading chip maker, Intel announced poor earning results. They will be laying off 15,000 highly skilled workers to cut costs. People, this firm just received stimulus money from the IRA bill and still, they claim to be losing money along with market share. We told you last week that Walgreens is about to offer bad news. This is it: 700 stores will be shuttered. It is no wonder that the unemployment figure ticked uo to 4.3%. We have so much more info and data from last week, but space is limited. Next week, we will show that Intel is not the only chip-maker to suffer. Nvidia is down 29% since its stock split. One analyst says it could fall 80%. There is truth in this wild forecast. We will tell you in our next peiece. Meanwhile, take a break and root for your nation in this wonderful Olympics that France is sponsoring. Peace.
