Where we are today is due to utter failure of government and central banks, corruption of all elements of government and moral and intellectual decay of our population. We have a massive and expensive surveillance state, weaponized police and government departments, massive financial deficits and debt with nothing to show for it, bloated money supplies, a hollowed-out economy stripped of entire industries and well-paying jobs, corrupted and lying media outlets spreading nothing but political propaganda and persecution of Conservatives.
Everything in Washington is broken and failed. Nothing is fixed. Much of Washington is plotting to illegally and unconstitutionally overthrow the Trump administration and has been from day one. Despite all the spending, our infrastructure and military has decayed. Our government is interfering with and manipulating many foreign countries -- yet half of our nation is obsessed with a largely non-existent influence of Russia in ours. These people which include the previous administration have been risking war with a country that has 10,000 nuclear bombs. For what??
It's all become this way because we are told nothing but lies by politicians, corporate chieftains, and other elites that everything is fine even though it's obvious that everything is broken. Only Trump was able to say the obvious truth much to the delight of one-half of the nation who were tired of lies.
Our inner cities, mostly black and ruined by government failures and the resulting moral decay, are like burned-out hulks of a previously high-level civilization as if we're replaying some dystopian movie like Robocop or Planet of the Apes complete with murder, crime, gangs and massive decay. Our status quo is completely and utterly unsustainable.
We also live in a time of nothing but massively unsound finance and banking thanks to the failures of our Central Bank and the corrupted government. Even our current concept of money is completely corrupted. It's as if no one alive even knows or remembers what sound money or sound finance is. Maybe that's why there are somewhat regular society-wide and world-wide crises happen about every 80 years as described in The Fourth Turning by Howe and Strauss. Eighty years is the length of a long human lifetime. After 80 years, there is no one alive who can remember the cause of the last crisis. Think about it. Our current crisis started with the crash of 2009 which is exactly 80 years from the last one in 1929. Our current crisis is causing economic upheavals that is also causing social distress and unrest.
Since we're 10 years into a 20 year long crisis phase it also means that, in the next 10 years, we're facing total war and crisis that will threaten the survival of our nation and maybe even mankind itself. From The Fourth Turning:
..the next Fourth Turning ends in apocalypse – or glory. The nation could be ruined, its democracy destroyed, and millions of people scattered or killed. Or America could enter a new golden age, triumphantly applying shared values to improve the human condition. The rhythms of history do not reveal the outcome of the coming Crisis; all they suggest is the timing and dimensionFourth Turnings end in total war, crisis and destruction. Interestingly, from Howe and Strauss' research, a grey champion often arrives to lead the nation through the crisis period. Surely, that grey champion is Donald J. Trump.
The last Fourth Turning ended with 65 million persons dead in World War II. How many will die in the next 10 years? Our current crisis might even end with a war against or succession from our own government. Our current government deserves to be vanquished so that we can start again. This is the only way to bring the country back to its founding principles and the restoration of the U.S. Constitution. It will require that you and I act with honesty, integrity, and honor during the coming struggle (war). Almost certainly there will financial calamity, hardship, system-wide failures and we will have to once again restore our country, sound finance, sound money and sound banking again from the ashes our proximate financial calamity. After all, our status quo is completely and utterly unsustainable.
What Sound Finance Looks Like
Not long ago, banks used to be a place where savers put their savings and the banks, in turn, lent out this money out to borrowers. That saved money was a surplus from the saver's hard work and productivity.
For many periods of history, gold was money and money was gold, so growth in the money supply was limited by the quantity of gold mined or ~2% per year. Nations historically turned to gold as money because no government can be trusted. That's more true than ever. With the exceptions of wartime, money used to be generally limited even when it wasn't backed by gold --- it was limited by responsible and high-integrity bankers (and no central bank prior to 1913). As a result, the nation's labor productivity led to long periods of falling consumer prices and rising international exchange rates---giving consumers more spending power and prosperity (the opposite of today). Deflation was often the norm and that was a good thing for consumers and the country.
So, the nation's and world's money supply growth was limited for significant periods of history. This meant that the growth of debt was similarly limited to money saved. And there weren't trade and budget deficits--it just couldn't happen in a sound money regime. With sound money and sound banking, if a government spent too much and issued bonds (which takes scarce money out of the economy), it would cause interest rates to rise to attract more savings to re-establish equilibrium and crowd-out the private sector and immediately contract the nation's money supply (there was no "accommodation" of such pressures by central "money printing" to avoid the consequences of excess government spending ---like what is happening now all over the world). Too much government spending used to cause adverse real world consequences, so we had built-in budgetary discipline---thanks to sound money.
If a nation imported too much, then that nation would find their gold reserves (money) leaving their country and slowing their economy and imports to correct the trade imbalance. This controlled international trade and financial balances.
Oh, the beauty of a sound money regime. It limited spending -- meaning it required financial and government spending discipline. It limited debt levels, it controlled and balanced international finances and trade. It's TOO good because governments often did away with it when the going got tough --usually when they needed to spend money to fight wars. Therefore sound money, if strictly maintained, even has the effect of preventing wars!
Where We Are Now
All of that is history.
In 1970, US debt was $275 Billion. It took 188 years to achieve that. This past week alone, the government sold $258 billion! In the past 6 months alone, US debt has exploded by $1 Trillion. And this is during "good times."
In 1971, Nixon ended the Post WWII Bretton Woods arrangement which ended any semblance of (gold-backed) sound money. As an immediate result, our national debt and inflation began to skyrocket. Central bank activism and "experimentation" increased as they tried to tame the increasingly unstable business cycle---that THEY caused!
The big banks have once again become highly risky hedge funds using your money to gamble with highly leveraged positions in risky derivatives (again) thanks to the repeal of Glass-Steagall. They act with impunity since they have the government's backing when they fail again. Just 10 years ago, the world had a financial near-death experience as derivatives failed, banks failed and markets failed. The world economy come to a halt as finance failed. And here we are again thanks to lobbying money and corrupted politicians. Remember, if finance fails then everything else fails and millions, even billions, of people may die as supply chains collapse, commerce halts, shortages develop, grocery store shelves empty and people begin starving. Longer term, infrastructure fails including even electricity and utilities. I know it's unthinkable, but that's how bad it could get.