On A Sinking Ship: What Do You Do?

If you were on the Titanic knowing what you know now how would you have prepared for such a disaster? Of course, you are not in any danger on the high seas, but you are in some serious deep waters economically. And if the US economy was a luxury liner it would be heading smack into a massive iceberg.

The national debt, which is the total amount of outstanding borrowing by the federal government, stood at $33.8 trillion as of Wednesday. The Federal Government now has over $1T in interest payments yet the Government doesn't collect that much. The result is the US debt is basically in negative amortization. That means the debt has to increase by both the regular interest plus the interest amount not being covered. This grows the debt exponentially.

The real tragedy is that when you factor in the unpaid future liabilities which include Social Security, Medicare and Medicaid the real debt is over $200T. Let's repeat that number $200T.

We took 200 years to accumulate the first $1T in debt and the Biden Administration added $1T to the debt in the last 3 months. So, what are you going to do?

Most Americans will simply sit idly by and watch whatever little amount of assets they have just whittle away. Wall Street in the form of hedge funds and institutional investors are presently consolidating the housing market. Black Rock has been a leader in the purchase of blocks of homes to turn around and rent to the public. This is actually the opposite of the former mortgage bundling that led to the 2008 financial debacle. Now, it's far more profitable to shut out home ownership and just force the market into a huge rental pool. Of course, this also plays into the Government's hopes of limiting personal ownership. As Rod Serling would say, imagine a world where no individual could own any assets. Housing would be Government controlled; Transportation would be Government controlled. Food development and all industry would be run by the Government. If you think this is science fiction, you just aren't paying attention. Wall Street is plugged in with the Government and the movement is towards ESG (Environmental, Social and Governance) model which puts the control of all industry in the hands of a few institutional funds and the Government. Black Rock once again is leading this charge. If you dig into your 401K you will probably find some exposure to Black Rock and ultimately that will push your money into ESG.

So much for the picture, the consideration is what can you do? You can bet on yourself. In the end it will come down to self-reliance. It has always been about self-reliance but very few people have been educated and directed to that concept. The sad fact is the last 60 years have been a social engineering experiment that has brought us to this point. I submit though that if enough people become aware of financial literacy, use their assets to create financial independence their own self-reliance will become the butterfly effect that saves the nation. Self-reliance will establish the power of independence which reinforces freedom. The free market expansion of capitalism will ignite an economic and financial revival. It all starts with you.

Take control of your assets, get the hell out of the government partnership for your retirement, create a tax advantaged income through business development, create tax free income through your own bank. Add Gold, Silver and collectibles to your asset base. You are still in control if you identify the assets, you presently have. Stop betting on other companies and their equity and create your own equity. Bet on yourself, or you may just end up sitting on the deck listening to the band play while the ship goes down. Kindly read the book

Read the Book