The Virtual Vitamin

A Daily Dose of Insight and Common Sense

The Future American Currency?

The form of legal tender has probably been the most evolving element of our relatively new society.  We have gone from genuine metal coin and barters to a gold backed dollar, and then to mere paper with only contrived value.  Credit, now the most popular form of funds, exchanges the hope of potential wealth.  We wager on futures.  Investments are made on artificial assets, mere illusions.  Exploiting that system will critically damage any economy.  The castle has been built on a cloud.  The question to ask now is, “Can it be repaired?”  At this point, bringing the financial system back down to earth will require desperate measures, but it is still possible.  The key to any workable solution will have to include returning to a system built on honest value.  The present trend has led to instability and if we continue on, to collapse.  Following that path the next logical currency exchanged will be power.  — If the dollar falls, so does freedom.

Advertisements

June 8, 2010 Posted by | on Economics | , , , , , , , , , | 1 Comment

The Debt: A Personal Perspective

A family finances view of the National Debt… with a $50,000 annual income.

Their current debt would be $309,500, over 6 times their annual income.  Annual expenses would total $83,000, adding $33,000 to their debt every year.  9% of their income is simply paying the interest.  Stimulus and bailout spending would equal $135,000, all borrowed money.  Contractual liabilities such as an outstanding mortgage or vehicle agreements would total 2.6 million dollars, allocating $39,000 per year.  And they’ve just co-signed for a few of their neighbors’ new homes, debts of $323,000.  But the present looks rosy considering rising utility and health care costs in the near future.  Cutting 100 million out of the National Budget would be equivalent to $2.38 for the year.   It’s time to get our house in order.  I don’t think credit counseling is going to cut it.

May 15, 2010 Posted by | on Economics, on Government, on Politics | , , , , , , , , , | Leave a comment