US Debt Inflation

A very well-known libertarian-leaning politician has taken to television and the internet to voice a threat of an economic disaster on the horizon. While we are in agreement on the realness of the threat, our calls to action differ in some fundamental ways. Rather than offering the actual facts of its nature to arm the public with vital data so that they may make informed decisions, he has instead chosen to use this impending terror to frighten his viewers into connecting with his “trusted financial adviser.” This is akin to throwing a razor blade to a drowning man- Painful and wholly in appropriate.

Rather, the goal of the words you are reading is to offer a bit of insight into the actual nature of this impending disaster. This understanding begins with a chart, originally published by the U.S. Treasury Department a few years back. Strangely, if the reader were to Google it themselves they would find that this chart is listed, not as “Inflation”, but as the “Federal Debt”.

That “debt” however is actually “dollars spent by the U.S. Government over its income.” Those very real dollars, in order to be spent, had to originate somewhere. Where? From the printing presses of the Federal Reserve Bank, of course. In short, this debt reflects the “dollars” that were actually added to the U.S. money supply at a rate beyond human imagining. For example, George W. Bush entered his presidency in the 2000 election, facing a Federal debt - and money supply - of about $5.5 trillions, and ended his two terms in office with a debt and a money supply of $11 trillions. Our total money supply had doubled in just eight years! Then Obama came into office in the 2008, confronted with an opposition party that was determined not to spend a dime that it wasn’t compelled to. Which sounds great until one realizes that all spending bills must originate in the House, and not in the Presidency. Yet in spite of this apparent “roadblock” to spending, our current debt - and money supply - is now $18 trillions. What’s more, by the time Obama leaves office, the money supply will again have doubled! Why? The answer is simple, the Federal Reserve Bank is actually nothing more than a licensed “money machine”, which is chartered to spew out unlimited quantities of worthless - un-backed - paper money, on demand.

At this point we must face two absolute realities. First, it is virtually a fundamental law of economics that if you double any nation’s money supply - without similarly doubling that nation’s production of goods and service, then in a measured amount of time, all of the prices within that nation must likewise double. Second, un-backed money systems, by their nature, become unstoppable “money machines”, which in time will erupt in a manner that’s far beyond any political leadership to control. This truth is most evident in that chart above, in that the demonstrated geometric growth in our money supply, over half a century, was completely independent of whatever party was in office.

Recognize also that we, as a nation, are not unique in this experience. In varying degrees, the rest of the nations of the world as well, have become victims of this same phenomenon, with geometric monetary growth run rampant, since the end of World War II. In fact the growth in the money supply of every major nation on Earth, in the past half century, has come to range from 2500% to 4500% - with no end of such growth in sight, or even possible.

Having now demonstrated that each time our money supply is doubled, the buying power of every dollar you’ve saved for your retirement is cut in half. Then doubling that money supply once again, will cut that buying power to one quarter - to one eighth - to one sixteenth, and so on until there’s nothing left - no matter how many “dollars” you’ve squirreled away. That - is the inevitable disaster we all face, unless we take serious steps to circumvent the problem

One major difficulty that people face, in trying to understand this kind of situation, is their inability to grasp the true magnitude of such numbers. To most people it’s “Million, billion, trillion - what’s the difference?” As an aid in that understanding, however, consider the following. One Billion seconds ago was the year 1978 - while one trillion seconds ago was the year 26,000 B.C.. That’s one helluva lot of seconds - which if you now translate them into dollars, and multiply by 18, reveals the true magnitude of this nation’s debt - and its money supply.

Now that I’ve outlined the problem, many questions remain. Where did this terror come from? How did it happen? And most important of all, what can I do about it? The answer to all of these questions is the same. Knowledge! That is, in order to deal effectively with this situation, we must first come to understand “The Nature of Money”. By that, I don’t mean speculation or investment. I mean we must learn the actual “mechanics” of money, and how it works. With this understanding, we can discover how the events of World War II created this evolving world-wide monetary disaster. And finally, through this knowledge, what we then need to do to defend ourselves, will become self-evident.

If you would care to grow your understanding of this threat and what you can
do about it, please contact for more information on an upcoming event. Your future could depend on it.