7. The proposals of Negative Population Growth should be implemented immediately.
It is my opinion that this list represents the most clearly written and concise synopsis of America’s economic situation, that I have ever read; and I’ve read a lot. Brilliance doesn’t have to come in long form. There is a famous quote, “If I had more time, I would have written a shorter letter.” Robert Hickerson had more time.
Hickerson’s item number six explains a lot about our current election debacle and the ideas being trotted out. Ideas such as, “Americans don’t have any money, so why don’t we send them some? Let’s send everyone $600, but wait, there’s more, we’ll throw in $300 for every dependent kid. Oh yeah, and next year we’ll raise taxes.”
M. King Hubbert’s studies on a steady state economy (not based on growth) suggest that an interest rate of zero will become necessary. Sound like a nutty idea? The second largest economy in the world doesn’t think so, that is exactly what the Japanese did.
The U.S. is entering a very similar period to that which Japan has suffered for years, it’s called deflation. That is, deflation of your home value and the purchasing power of your good ol’ greenbacks, however we’re experiencing inflation in nearly everything that we purchase…like food and fuel. In precise economic terms, these twin events occurring simultaneously are referred to as “really, really bad.”
Japan’s central bank realized that their economic situation was really, really bad in 1995 when they found themselves in the deflation mode. In February of 1999 (acting on this information in the lightning speed of only four years) the Bank of Japan lowered their interest rate to zero…as in none, nada, nonexistent, where it stayed until 2006 when it was raised to 0.25%.
Japan earned the envious distinction of being the only example of prolonged deflation in a major economy since the Great Depression period of the 1930s. The U.S. apparently can’t stand the thought of being unseated and is attempting to regain the title by entering a second Great Depression. That’ll show those Japanese.
Our monetary system and our physical system of land and resources are in direct conflict. One is infinite the other finite. As a nation, we long ago passed the point of solvency by creating money with a 24 hour printing press that is backed by nothing more than a belief that Americans can be taxed in ever greater amounts to make good on the interest.
At some point, printing worthless money will no longer be an option, as there will no takers for purchasing the notes that back the valueless paper. So now we have the perfect plan for depression.
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