Make sure and read part I if you have not…
We looked in part I at a handful of great, powerful and wealthy nations that fell apart under the strain of economic situations that are similar to what the US faces now… now for application and conclusions:
So, it does not take a historical genius to see that massive debt on a government can lead to disastrous results for the people, the people in power and sometimes the effects are far reaching.
As I put in the introduction of this series, I am not into fear-mongering. I just want people to have an accurate picture of this fact – economic collapses can and sometimes do happen. We are not immune to it, either. I am sure in every case, there were people claiming that it could not happen. Notice how often these countries listed above went from world power to a the sideline after poor economic leadership.
(appreciation to: http://listverse.com/2010/08/10/10-great-financial-collapses-in-history/ for some of the details here)
Also, for the sake of our series, that people perished and suffered.
I think there are political applications here, but I am not getting into them. I just want to give information and encourage you to consider what preparations are appropriate for your family. Right now the US national debt is about 17 Trillion dollars… around 6 times the annual tax revenue, which is about 2.7 trillion. (you can check these numbers at (http://www.usdebtclock.org) … and runs at about a 650 billion dollar deficit… in other words, the debt, as massive as it is, is growing every second.
I read that some numbers indicate that the dollar has already lost 92% of its buying value since introduced in 1913… I do not know if this is true, but I have head stories of my grandfather buying homes for a few thousand dollars or going to the movies on pennies. Inflation is real and we have been experiencing it. Will we experience hyper-inflation?
What will be the US’s solution to massive debt?
Name an enemy we can all hate and come together against?
Reduce our military to the point of not being a world power?
Or maybe some new solution that has not been tried before?
I do not know. However, I do know that many think we can keep this up indefinitely. Others say there is only so far we can push this.
I am not an expert enough to know. What I know is that other powerful and wealthy nations have collapsed under the weight of economic conditions and that even common goods and services became very scarce for common people.
It is just another potential that motivates me to encourage my neighbors and friends to be prepared for the system to, at least, slip for a while… and not be reliable. Likely? I really don’t know in this case. Possible? I would say certainly.