629-[In-Depth Version] Federal Debt: The Ticking Bomb that No One is Willing to Defuse
Yesterday, I released to you a discussion on the Federal Debt in the United States. That show should be your introduction to this problem.
But in thinking about it, I felt like it was incomplete. I wanted to present some useful materials, in audio format, for listeners who don't have a firm background in the fundamentals of the problem.
So I decided to go in-depth to try to lay out the problem very clearly.
This show is deep and difficult. It holds quite a bit of my reading to you--but also some interesting commentary.
If you're trying to understand the underlying, structural problems more clearly, listen to the show.
If you prefer reading, start with these two links:
628-Federal Debt: The Ticking Bomb that No One is Willing to Defuse
We face a massive problem in the United States right now. Put simply:
- We are borrowing more money than ever before.
- There's no plan for us to borrow less money in the future.
- There's [almost] no mathematically sound plan that can be created to have us borrow less money in the future.
- No major, national politician is loudly, consistently talking about how we can spend/borrow less money.
- Rather, there are loud, vigorous, and strengthening forces moving in the direction of borrowing even more money.
The government has only three sources of funds:
- Taxation (bad for you if you earn money or have wealth)
- Borrowing (bad for you if you're a citizen, not an investor)
- Inflation (bad for you if you're a saver)
There's enough evidence for honest, careful people to predict the strong probability of future crises.
The problem is, we can't know when these crises will occur.
But it's time to start preparing.
Joshua
- "We've Never Had Deficits Like This During Peace and Prosperity Before" ...
Out & About: Interview for "In The Rabbit Hole" Podcast
I gave an interview to Aaron from the "In The Rabbit Hole" podcast, a modern preparedness podcast. It was published on November 12, 2018.
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https://www.intherabbithole.com/e272/
Preppers love to discuss many things: Guns, food storage, knives, bushcraft skills, and a litany of other topics. These topics are chewed, debated, and deliberated about endlessly amongst preppers.
But personal finance does not get much love, unfortunately. It’s not surprising, though. Most people would rather discuss… um… adult relations at the dinner instead of money–an odd taboo, really.
At its core, money is an omni-tool; it can be turned into nearly anything else needed. And a healthy personal financial standing is the most likely position from which to best safeguard your families well being.
Personal Finance for Preppers Topics Discussed:
- Responding to people whose strategy is to not worry about money...
540-Is US Government Bankruptcy a Sure Thing? A Friendly Debate with David Stein, Host of Money for the Rest of Us
On Episode 466 of Radical Personal Finance, I discussed the idea of the US Government's certain default on its stated obligations and commitments by referencing Professor Lawrence Kotlikoff's Congressional testimony on this subject.
After that show, my friend David Stein (host of Money for the Rest of Us) emailed me to tell me that I was wrong. :)
So, I invited him on the show to debate it with me.
Enjoy!
Joshua
- Here's the previous show on Kotlikoff's work: https://radicalpersonalfinance.com/the-usas-long-term-fiscal-gap-and-why-it-matters-to-you-americas-fiscal-insolvency-and-its-generational-consequences-by-professor-laurence-kotlikoff/
- Please support RPF on Patreon: www.radicalpersonalfinance.com/patron
523-Last Week's Fiscal Catastrophe and Your Response
If you want happy-go-lucky, unicorns-and-balloons-in-the-sky Joshua, skip today's show.
If you want angry Joshua to opine on his disgust with the US American politicians' lack of fiscal restraint and the long-term catastrophe that is the US American budget, then you'll enjoy today's show.
Enjoy.
Joshua
- David Stockman: The Night of Fiscal Infamy http://davidstockmanscontracorner.com/the-night-of-fiscal-infamy/
- Mirror, Mirror on the Wall, Obama Definitely Was Not the Biggest Spender of All https://danieljmitchell.wordpress.com/2017/10/16/mirror-mirror-on-the-wall-obama-definitely-was-not-the-biggest-spender-of-all/
466-The USA's Long-Term Fiscal Gap and Why It Matters to You (Americaā€™s Fiscal Insolvency and Its Generational Consequences by Professor Laurence Kotlikoff)
I've alluded to my long-term guess that the US Government will default on many of its current promises.
But, I've never really supported that argument.
I thought I'd kick that support off today by sharing with you a succinct and coherent description of the problem by reading Professor Laurence Kotlikoff's testimony to the Senate Budget Comittee in 2015.
Enjoy,
Joshua
- America’s Fiscal Insolvency and Its Generational Consequences: Testimony to the Senate Budget Committee http://www.kotlikoff.net/sites/default/files/Kotlikoffbudgetcom2-25-2015.pdf
- Support Radical Personal Finance on Patreon! https://patreon.com/radicalpersonalfinance
