Time to stop whistling past the graveyard and face the reality that the United States will not be able to meet its credit obligations to its citizens much longer. Politicians continue to spin the truth as most Americans stick their heads in the sand and ignore what is really happening. Fast approaching is the day of insolvency, when the country defaults and the checks stop going out.
Look at the history of man and you will see that periods of stability and prosperity are few and far between. We have been fortunate to have lived in a bubble of relative harmony, but we are deluding ourselves if we believe that our current government will be able to sustain itself ad infinitum. This experiment called the United States of America is nearing an end. Our beginnings were inspired by the noblest ideals of the French revolution – liberté, égalité, fraternité – and we have spent the last two and a half centuries smashing those ideals into bits. As we stand on the shards of our values we must begin to look ahead and ask ourselves what comes next.
We are not likely to have an all-out anarchic civil war, but clues to what will happen here may be found in the remnants of the old Soviet Union, or more recently in Ukraine. It may start as a ripple but it will soon become a tidal wave. The markets will crash. People will be in shock. There will be outbreaks of protests, looting, and mayhem. I don’t think most Americans have even considered the thought of our government crumbling. But everything that is unsustainable must come to an end.
People do not realize that we are hitting the limit fast. We have seen the default of cities and counties. Several states are now at the point of default – California, Illinois. No one is willing to face the truth, so we will continue to lie to ourselves. The only choice is whether the government will delay the checks or just print money, and you can make an argument that printing money is exactly what has been going on with the ‘quantitative easing’ of recent years.
We continue to smile, laugh, and congratulate ourselves for the ‘progress’ we have made as a society, but the system is on tenterhooks. What will it look like when it comes? Hyperinflation? A crash? The trouble with finance is that it is a house of cards and any little thing could bring it down. A bad trade in Malaysia, a judicial decision, a corporate merger. If you went to the ATM tomorrow and it would not give you money, what would you do?
People say I am a doomsayer, that I think all is lost. Nonsense. We will still have sunrise and sunset. You, your families, your neighbors will go on living just as you do today. Hopefully most people will continue doing what they usually do in a sort of societal momentum, but they will find that the paycheck does not come. And so they won’t pay – bills, mortgage, utilities. And then some people decide not to go to work any more because they are not getting paid. The utilities go out. The system shudders to a stop. People will give anything for a gallon of gas. There will be heroes and martyrs. Winners and losers.
We may end up depending on corporations. If the state is gone, who do we turn to trust that the water is drinkable and food is safe?
In the aftermath we have to consider: what next? Do we accept the status quo? Will we accept a strongman who takes control of the military and leads us in the fashion of Putin? We throw around the ideals of ‘democracy’, but when it really matters, most people are not comfortable with ‘majority rules’.
The US is an airplane out of fuel, out of power. My dearest hope is that we can land it gently and walk away, rather than crash and burn.