The USA Is Dead Broke

The comments below are an edited and abridged synopsis of an article by Egon von Greyerz

Von Greyerz tells the story of Debtor, a new-born American. His is the greatest economy in the world, but he has been given a bad start in life. His parents haven’t told Debtor (they are unaware themselves) that he starts life with a massive debt burden that will continue to grow.

Von Greyerz discusses the American debt slave; US debt rising to $43 quadrillion; US unfunded liabilities at $220 trillion; why every American has a $715,000 liability; the primary aim of governments (re-election); consumer loans; forgiven debt must be paid by someone; and the US is dead broke.

For over 50 years, the US government has bribed its people with social security, welfare and medical care at the expense of future generations. Debtor’s parents and their fellow Americans didn’t understand that the country couldn’t afford the standard of living that it was providing. The common belief in all Western economies today is that the government will always take care of you. No citizen ever asks: “Where is the money coming from?”

The US, together with many countries in the world, is leading its people to perdition. This will include massive debt defaults and a deflationary implosion of most asset values.

Before that, governments will try to save their economies by printing unlimited amounts of worthless money. This will only lead to hyperinflation and collapsing currencies.

What will happen to Debtor, who was born during the biggest economic bubble in global history? All his debts, together with the country’s debts, will disappear into a black hole. So will his (probably non-existent) savings and investments.

Just imagine if Debtor’s parents had a little foresight and gave him some gold. Even a small amount would make a significant difference to his life.