The Debts of the Parents Will Be Visited Upon the Children

Thursday, January 5, AD 2012

Unfortunate indeed is the country that forgets this sage piece of advice from Mr. Micawber:

 “Annual income twenty pounds, annual expenditure nineteen pounds nineteen shillings and six pence, result happiness.  Annual income twenty pounds, annual expenditure twenty pounds and six pence, result misery.”


One Response to The Debts of the Parents Will Be Visited Upon the Children

  • Nations are ruined when governments grow faster than private sectors. (See Greece, Italy, Ireland, Portugal, Spain.) That has been the US model since mid-2008.

    If the US doesn’t reverse course there likely will be economic collapse.

    Congress and the president are unwilling to address the debt problem and, in fact, are exacerbating it.

    The point of no return will be when the federal government no longer can collect sufficient tax revenues to service the national debt.

    The fed will monetize the debt: buy the debt, efectively print money, and that will induce hyper-inflation (must have central bank action to generate hyper-inflation).

    The paper dollar will be worthless.

    The various trust funds: Soc. Sec., Medicare will not be able to pay anyone – they are invested in worthless (more taxes need to be collected from you to pay you) federal gov paper.

    If Obama gets re-elected, and maybe Romney, within your children’s lifetimes:

    No money can be paid from bankrupt Social Security, Medicare, etc.
    Life savings and financial assets will be wiped out.
    Famine, pestilence, exposure.
    Mass violence, rapine, etc.