Letter: On the financial precipice
I believe that it is pertinent to note that Lord Christopher Monckton, Margaret Thatcher’s Science and Policy Advisor, has weighed in on the precarious financial and economic straits of the U.S. While Lord Monckton is probably the world’s foremost authority on the case against manmade global warming, his commentary regarding the state of affairs concerning the dollar and America’s financial plight possesses Lord Monkton’s careful factual analysis. That analysis, coupled with the logic of numbers, produces an utterly debilitating forecast of the bleak future confronting every man, woman and child in America.
The current $17 trillion debt equals $50,000 for every citizen of the United States of America. With that $17 trillion divided up amongst the taxpaying citizens, the debt for each taxpayer is $150,000. The interest due on the national debt alone is $1 billion per working day, at the current interest rate. The potential for increased interest rate changes further exacerbates the danger. Lord Monckton presents the debt numbers in a clear and reasoned fashion and sums it up by emphasizing the currency creation necessary to keep the dollar and the U.S. afloat currently requires $1 trillion per year of digitally created dollars out of thin air. Such dollar creation produces a currency that is not backed by any asset whatsoever. Of course, this currency creation undermines the value of each dollar in circulation, while adding to the already exorbitant debt, which again must be serviced by ever-increasing interest payments.
A modest rise in the interest rate poses a threat of substantial proportions. This is nowhere more evident than the fact that every nation is now moving to protect itself against the shrinking purchasing power of the U.S. dollars in their reserves. A very real danger exists in this recognition as the flight from the dollar is accelerating. At some point, the flight from the dollar will break out in the media and press. At that time, interest rates will suddenly and automatically rise as the dollar is forced to defend itself. When the interest rate begins to rise, the dawning of the debt plight may come to be recognized as the black swan event that it portends. The media and press will then be forced to report what it may have come to recognize all along: The current level of debt spending, coupled with massive currency creation, is unsustainable.
With Great Britain’s Lord Monckton now having added his voice to the many who recognize the potential for disaster gives further credence to those voices of reason. Such financial experts as Peter Schiff, James Turk, Addison Wiggins and now Lord Christopher Monckton are asking the question. Is anyone listening?
Lord Monckton postulates on the current debate: "At worst, what is now happening to your nation may be deliberate. In that event, your current president will go down as history’s greatest villain. In any event, he will go down as history’s greatest incompetent."
Lord Monckton concludes: "Finally, pray. God bless America. It has been nice knowing you. Only when you are gone will the world realize how much it misses you and—paradoxically—how much it owes you."
It is important to point out the economy that we inhabit is not capitalism, but an interventionist form of government meddling in the so-called free market. This meddling has brought about the boom and bust cycles and the practices of fiat currencies. If we had true capitalism, we would not be experiencing the current economic threats. The often repeated canard "Capitalism has failed" is as much an insult to economic theory as it is to the truth of the matter.
Port Haywood, Va.