The United States national debt has increased on average 8% a year since Nixon unhinged the gold standard in the 1970’s.
The gold window was closed. The U.S. monetary system officially became one purely of fiat money. And ever since then, the national debt was unleashed. Government spending way beyond its means became normal.
The debt during 1950 was 257 Billion dollars. The debt as of this writing has broken through 23 Trillion dollars.
And there appears to be no consequences, and certainly no end in site. Big spending continues. Massive money printing (mostly digital dollars) continues while more and more debt is piled up. It’s actually happening worldwide.
So does it actually matter?
It most certainly matters on a personal debt level! Banks will lend you money, but only up to a point. Banks need you to pay it back, with interest. Too much debt and there may be default. If you don’t pay your loans every month, the lender banks will come after you. If you don’t pay your property taxes, the government will come after you.
However the U.S. government (and many state and local governments) seem to be able to spend and spend without repercussions. How is that?
State and local governments will tax you more (one way or another they’re gonna get ya…).
The federal government borrows more. They sell debt to other countries, to big investors, and even the Fed itself is on the hook for Trillions. But the scheme just keeps on going.
Seemingly never a hiccup. More debt? No problem! It must be nice to work for the government. No need to turn a profit. Just spend other people’s money. So does it even matter? (spending Trillions more in debt each year?)
Trump’s 3 years so far has seen an average annual increase in spending of 1 Trillion dollars per year.
Obama’s 8 years spent on average 1.2 Trillion each year of extra debt.
As a percentage of existing debt, here’s how the presidents lined up with excess annual spending (on average for their term), since going off the gold standard.
Trump 5% (3.1 Trillion so far)
Obama 8% (9.5 Trillion)
Bush 7% (4.3 Trillion)
Clinton 4% (1.6 Trillion)
Bush 11% (1.4 Trillion)
Reagan 12% (1.7 Trillion)
Carter 9% (0.3 Trillion)
Ford 9% (0.2 Trillion)
The numbers keep getting bigger as the currency itself devalues.
I recently got my annual property tax bill. And I suppose that’s why I’m writing this today (sore about government spending). What a surprise, my taxes went up again. Substantially. This time crossing another threshold of the next ‘thousand’ dollars (each increment is psychologically painful).
The rate at which general spending is increasing by government, is seemingly ridiculous. But they’re getting away with it.
Is there a state out there with a relatively low tax burden? Maybe it’s time to look around 😉
[ End Of Rant ]
The national debt matters because when it can no longer be serviced I believe that the monetary system will fail.
Much of the debt is held by foreign countries and interests and they insist
on being paid.
Just as in our personal matters,we must pay what we owe or no one will do business with us.
There is plenty of blame to go around.The solutions are easier said than done.
I must ruminate on this more.
I looked up who owns us debt, got 3 different answers.
The newest one said US residents owned 3/4 of it,
that would be through cd’s bonds and your bank
buying gov debt with your “saved”
money.
the fed about 2.5B
could be correct, could be bs.
fed 2.38 trillion not b
and another tells me US “investors” 6.89 trillion..
nothing matches, every different source is wildly.. different.
The data can be manipulated depending on what the source wants to see. Some report unfunded debt, some do not. Some report foreign owned debt, or individual owned debt, or retirement fund debt. So many variables that they can pretty much pick and choose. You’ll see “for every man woman and child on the planet,” but people see the much smaller number rather than the qualification. Opposed to “Every person in the US,” which paints a much grimmer picture.
The US investors piece is likely unfunded debt–social security and other unfunded programs. If those are counted, the totals are MUCH higher. When private debt is included the totals go into the 200 trillion range. If the investors are individual investors, they’re talking retirement plans and bonds and likely not counting unfunded debt.
Horse
The Fed has more than 2.3B in the bottom drawer as it monetizes further debt expansion and continues to do so on a weekly basis..
The National Debt does not seem to bother the politicians one damn bit.
Its not enough that these lying pieces of crap in Congress EXTORT HARDWORKING AMERICAN CITIZENS OF THEIR EARNED WEALTH to grow government and redistribute our earned wealth to un-necessary government workers, crap-hole countries that hate us and those among us who do not bother to work and pay taxes, THESE SLEAZEBALL POLITICIANS THEN BORROW EVEN MORE MONEY (AGAINST OUR FUTURE EARNINGS)!
We The People have the power to stop this, but it will take a revolution of sorts to do so. It is apparent that those that We The People vote to represent us, are nothing but liars whose goals center around larger government and that means more extortion from We The People…
FUBAR, Ain’t it?
Red Dog Master,
I have an idea…lol…
Instead of paying senators and congress persons for their service, have them pay back what they have spent from Soc. Sec., from their own pay checks, OR, instead of getting paid, have them fund their pet projects out of their own pockets. Why are they still getting payed once their term is done? Why don’t we stop that?
As Red Dog Master mentioned , and I agree wholeheartedly, our country is FUBAR. The only solution I see is a terrific amount of unpleasantness for all citizens through some kind of a financial reset event.
No one can possibly imagine how much 23 trillion dollars is , no one . Unfortunately our leadership at most levels of government are a cabal of liars and thieves . Our taxes continue to rise,the dollar continues to be devalued through inflation and prices on everything continue to escalate.
Our state,WA, has no income tax, but does have a high gas tax, terrible gun laws and the state is run by the commucrats in Seattle. I do not see that changing.
Prepare for the worst case scenario and pray it does not happen.
..
….In the year 1791 whiskey was the primary source of cash for thousands of American families. As a percentage of the population there was never another time so many depended upon the home manufacturing of whiskey, so much so that it was frequently trained in place of conventional currency. A family’s crops were enough to keep them in food but most could not grow enough to sell. However a small amount turned to whiskey could provide a family with their cash needs.
This was life for countless numbers of people following the American Revolution and in the year of 1791 the newly formed American Federal government would pass the very first tax on the American people, the whiskey tax.
Borrowing money to pay for war is not a new idea and at the end of the Revolution America was already in debt to foreign nations, the whiskey tax was passed to pay this debt.
The American people however were less than happy with this newly formed government taking from their struggling families and refused to pay. Many of these people had just fought in the war for independence because of this exact behavior and even used the same slogan of “taxation without representation” to describe the whiskey tax.
In 1794 anger turned to violence when over five hundred angry men attacked the fortified home of a tax collector. In response then President George Washington would lead 13,000 armed militiamen to crush this rebellion.
Faced with a force of over twenty times their number the rebellious countrymen fled before Washington’s arrival and the slaughter he was prepared for never took place.
There were some arrests and the new Federal government would continue to struggle with collecting this tax all the way up until it was repealed by Thomas Jefferson apon his taking office.
The division in the nation that this conflict amplified would play a great role in the formation of the political parties of the day. For simplicity they could be divided into two groups, the Federalist and the Anti-Federalist, the Federalist favoring a large centralized government.
While many historians have praised George Washington for his handling of the Whiskey Rebellion I take a less forgiving view. The only thing that prevented this from being a slaughter was that the rebels ran for the hills.
That Washington was willing to bring arms against men who had just a few years earlier had fought beside him in opposition to this very sort of taxation speaks very poorly of Washington’s character.
As is almost always is the case great generals do not make great presidents. Washington rode off to battle under the direction of England for more of his life than he did for America and when the American Congress directed him to kill his own countrymen he did not falter.
Over two hundred years have gone by but for all the changes we still fight battles much the same. The battle between the Federalist and the Anti-Federalist still goes on but today the doctrine of Federalism has captured both parties. We the peasant folk still struggle under tax burden created by debt and our most beloved leaders will ride upon you with drawn sword should you refuse to be an obedient subject.
Excellent commentary, Wolfgar. Truth is tough to hear sometimes. Ask any Native American about the government’s benevolence.
No treaty was ever upheld! Except the ones that favored the US..
The US gubermint, NOT the average US citizen
Ten years ago it was only ten trillion, and counting.
https://www.pbs.org/video/frontline-ten-trillion-and-counting/
23 trillion dollars? Let’s make that a more recognizable figure, around $70,000 for every man, woman, and child in the country. Have no doubts, as a citizen, you are on the hook for that amount. You cosigned the loan by accepting others borrowing on your behalf. Every dollar added to the “federal deficit” is added to your personal indebtedness.
Scripture tells us that borrowing makes us a slave to the one loaning…………but those bemoaning slavery seem not to think this type of slavery is bad. O’ what a tangled web we weave………..
What to me is so absolutely apprehensible is the .Gov aka Politicians aka Elected Officials aka those that serve “US”, at every level, don’t give a flying fig about how much $$$$ they are stealing from you and me. AND your children’s future.
NRP,
You are correct. If it such an honor to serve then you should not get payed.
I’m NOT talking about the military! Those people earn every single cent every single day!
They also don’t get to set their own pay rates.
It will matter when the US Dollar loses it’s world reserved currency status. Even now the dumping of US Treasury notes continues as folks quietly work to sell them with out causing a panic. Even Japan has gotten serious about selling them.
The Fed has been the buyer of last resort and is socking them away and getting paid interest by We the People via our Governments tax and spend habits.
The SECURE act that I mentioned a few days ago has a little article in it to have OUR Retirement monies “Secured” in special US Treasury Bills to “Guarantee” us a safe return “Protected” from the vagary’s of the Stock Market.
Yeah just like how Patriotic the PATRIOT act is eh? They KNOW that US Debt is being dumped by foreign countries and are setting US up to the Debt Cows for them. There is Trillions in mostly BOOMER Retirement funds available if they write the laws for that….
When we finally “Sanction” ourselves out of the World Reserve Currency I expect from historical events like Britain when the pound stopped being World Reserve Currency the value of our dollar to drop at least 50%. The British called it the Winter of their Discontent when hospitals had to have patients families bring in food and bedding for them and Garbage strikes and black outs-brown outs and Electrical Worker strikes…
Their “Winter” lasted a few years before things evened out. But hey look at the “Mighty” British Navy.. A Single Aircraft Carrier that HAS NO AIRCRAFT. A US Marine Air Wing is stationed on it.
Oh don’t worry the US Government can always raise taxes eh?
Agreed, as long as we are the world’s reserve currency we can keep spend and running up the debt. Once we’re no longer the reserve currency it will all come crashing down just like the USSR in the 90s.
me2,
To a point. But how much is too much? I don’t see people rioting in the street…yet…
You won’t either. The People are comfortable.
As long as they can sit in their recliner, watch the (recently discussed) big screen HD TVs, watching the game, in climate control drinking a beer, smoking “medicinal” marijuana and typing the grievances of the world and politics on MSB on their super phones there will be no rioting nor changes.
Discomfort is required for change.
No, it does not matter.
Most countries are playing the game of currency devaluation. So, our money stays relative to all the other countries. The real losers are the people that have been fiscally responsible and saved in any currency.
The big hit will come when all currencies are replaced by new script, like several other countries have done in the past – I think Mexico was the last major one to do it in 1993. This is the answer to hyper-inflation and is a form of default – but the trick is yo not be the one holding the bad money when the roof falls in.
India in 2016 comes to mind. There have been others.
23 trillion is not including that other 21 to 23 trillion that is ‘off the books’ that was discovered a couple of years ago by Dr. Mark Skidmore. Catherine Austin Fitts talks about it and both of them have recently been on Greg Hunter’s show- USA Watchdog.
Also doesn’t account for the future “unfunded” liabilities which I’ve heard huge numbers for,,, SS, Medicare, gov. pensions etc.
“Does the US national debt even matter any more?”
It sure doesn’t seem to, does it?
There was an article in Forbes earlier this year that I’ve seen cited and quoted in other places, and according to that, inter-governmental debt makes up 27% of the total US debt, and is owed to 230 different federal agencies that invest in US Treasuries to earn interest from their excess/reserve cash holdings. The rest (16 trillion+) is spread around – some of the biggest debt holders are:
– 30% foreign govt’s and their related investments
– 15% individuals and banks
– 12% the Federal Reserve (artificially propping up our economy)
– 9% mutual funds
– 5% state and local govt’s – domestic
– Everything else is a combo of all other debt held by insurance companies, pension funds, US Savings bond holders, etc…
Within the foreign-held portion of our debt, China and Japan each hold more than $1 trillion. The UK and Brazil each holds more than $300 billion, and Ireland, Switzerland, Luxembourg and the Caymans hold more than $200 billion – in some cases debt is held by foreign sovereign wealth funds so the actual holders of the debt are unknown.
These numbers may have shifted a bit since the article was written a few months ago, but it seems clear this is a big shell game within our own govt. We taxpayers are on the hook for the cost of annual interest to service all this debt, much of which is paid out to govt agencies who bought Treasuries. So, if our economy fails, or we default, we would be defaulting on ourselves more than as anyone else. And, because the data is difficult to piece together and constantly changing, it is confusing and difficult to pin down the exact numbers at a given time.
Even if China continues to reduce it’s US debt holdings, it seems the rest of the world is okay with picking up the slack, as we are still considered a better bet than many/most countries. Plus, many other countries have racked up massive debt and are in a leakier boat than us (ratio of national debt to annual GDP), including: Australia, Singapore, Switzerland and much of northern and western Europe.
So, as other countries are going into zero or negative rates, our debt is still paying a better return with less risk than other options – so which countries are going to hurt themselves by selling off all their US debt? Who is going to topple world markets (including their own) by taking down the US economy? It feels like the madness will never stop – and I continue to be amazed it’s gone this far with no end in sight.
As everyone here has said and knows, get your financial house in order. Pay down your personal debt, live below your means, choose your investments with care and look into credit unions and strong local/regional banks that might be in a stronger financial position or less leveraged than the big conglomerate banks.
There is no avoiding the economic risk we all face, and it seems impossible that the debt keeps rising and few seem truly alarmed by it. But, all of us here at least recognize the risks and can take some steps to help shield ourselves from the worst effects of a meltdown.
This info may helpful to some readers when it comes to their property taxes. Some states offer a way to freeze all future property tax increases if you are over 65 at the current amount your now paying, but you do need to apply for this.
Next, some state offer a program that if you, or your wife is 100% disabled, that your primary home is 100% exempt from property taxes each year. To find out if your state offers a program like this, all you need to do is get on the phone, and call your states IRS office and ask.
What about a coordinated tax holiday where people withhold taxes for a few months at the same time ? Isnt it legal as long as you hold the funds in escrow and for a certain period of time?
The $105 million in Foreign Military Financing funds for the Lebanese Armed Forces was released last week. LAF is run by Hezbollah Muslim Terrorists.!!
Mexico: $290,000,000.00
Canada: $31,000,000.00
England: $32,000,000.00
China: $ 800,000.00
Russia: $ 168,000,000.00
Israel $3.2 Billion
Saudi Arabia: $463,000.00
Colombia: $516,000,000.00
The friggin list is endless.!!! Why are these countries gettin, one damn dime in foreign aid? These are top tier financial countries.!! Except for Mexico, witch is a SH-T HOLE.!!
I gotta pay these blood suckers 20 percent capital gains, for my GOOD business decisions, They never stepped foot on my ranch.
Just keep printin and wasting that money.!!
Comes a time to pay the FIDDLER, we are ALL screwed.!!
Stand my Ground,
Foreign aid= money laundering. Everything goes full circle. Every stop along the path of our tax money being spent, someone takes a cut.
Hypothetical: Lockheed Martin donates to Senator Snodgrass’s campaign fund while trying to get Israel to buy several of it’s latest fighter jets. Senator Snodgrass meanwhile, pushes his colleagues to include purchase price of those fighter jets in an aid package for Israel. Israel (after receiving this aid package) announces they will be buying those fighter jets from Lockheed Martin. Senator Snodgrass’s son is hired to sit on the board of the company acting as an intermediary for the sale (with an insanely large salary package). Lockheed Martin, now flush with money, donates to Senator Snodgrass’s campaign fund and to the Senator Snodgrass Foundation (charitable of course, and donations tax deductible). Senator Snodgrass then lobbies his colleagues to include monies to Liberia who is in negotiations with Lockheed Martin to purchase their own fighter jets………..and around and around we go.
See how it works? Trillions of tax dollars, laundered into the pockets of select folks. “Foreign aid” is just one of the myriad of kick-back and pay-off schemes developed over the years to enrich those with a niche in the “deep state” mechanism. Any wonder why the “deep state” bureaucrats, politicians, both republican and democrat, are panicking over an outsider such as Trump looking over their shoulders?
Post of The Day, Dennis!
Dennis
Awesome analogy of how the money is laundered through each cycle.
Get out of debt, buy tradeable hard assets, a small amount of junk silver, medical supplies, etc.
When a wealth tax hits, and it will if any of the current crop of Dimocrats is elected, then you will see a crash as never before. They will escalate the deficit beyond all belief with their experiment in making everything free while raising taxes in an effort to “Save the Economy”. All that will happen is to accelerate a global crash that is already starting.
Reference the MSB posting of “The Greatest Depression” as a starting point for planning.
All of the figures showing dollars per US resident should show per US Tax Payer. If you include the unfunded debt you will see it is already unpayable. This will only get worse as people give up on working and get on the government dole.
Other than humanitarian aide, in very specific instances only, the US should stop all foreign aide, PERIOD!
Deep South,
Appreciate your post, and I agree with MOST of what you say.
I’ll go out on a limb and say that I am skeptical that most USA Aid earmarked for “Humanitarian” purposes probably does not reach those that it was intended for.
I would be against giving any tax payer dollars to foreign countries for any reason.
Hi Ken Boy you hit a nerve with this one.
Yes the U.S. debt is at $23 trillion dollars, what the government doesn’t talk about is the UNFUNDED LIABILITIES witch is currently is at $127 trillion dollars that’s $150,000,000,000,000 dollars debt. The daily increase of this is $3 billion dollars on the U.S. debt and $18 billion dollars on the unfunded liabilities that’s $21 billion dollars spent by our government every day. Then there is state debt Ca. for instance is $453,742,715,000 in debt with a daily increase of $27,000,000,000 dollars. Yes we as a nation are headed for a big collapse.
Ca.debt daily debt increase is $27,000,000
As a country we have fallen into the mindset that debt does not matter because someday it will be cancelled.
The latest and most extreme example is the student loan catastrophe. Who gains and who suffers? Many got a worthless degree and had a great time on the loan, but never intend to pay it back – yes I have talked to some in $100,000 or over range. The ones that get shafted are the ones that have or are paying back the money. Socialism at it’s worst.
The war will start when the last pot left to raid is our property tax – that is the one most of us can not escape.
Debt is imaginary, as it all the money. Wealth isn’t money. Money is what is used to transfer wealth. Debt can be totally wiped out, or adjusted any way desired, just like money can…but wealth is always wealth. An apple stays exactly what it is…whether it costs .5 cents, or $50 bucks.
All the troubles of printing, moving, storing, guarding, counting,n converting, and losing, money is either a past concern, or eliminated by computers.
What makes a wealthy country, wealthy? Its tangible resources, not how much money it prints, or says it has. Real money is only exchanged between governments in the form of tangible goods, and materials. Money spent by a government within the bounds of that same government is the same as having that government spending nothing at all. Not until resources trickle away beyond the control of that government has anything been “spent.”
Logic dictates that someone “pays”. Debt comes around, so to speak. If that were not the case, we could all take million dollar loans, never pay, and say hurray. Debt is real, in my view. But maybe that’s my problem. Perhaps I should go to the bank and try to get that million bucks 😉
But yes, I get it, debt “should” be backed up by collateral. Tangibles. To the extent the lender feels comfortable lending – or within the law or regulations (if there’s applicable law or regulations).
We are a country of debt. Big time debt. You might say the tangibles are the backs of the workers (taxes). But the debt is WAY beyond the ability to pay it. It’s a joke. Which is why I titled the article, does it even matter any more? Never seems to be repercussions.
I suggest, fire up the presses even more. Send us each moe money. Isnt’ there a candidate promising us a thousand bucks a month? That’s a start… But I want mo money than that! Gimme dat. It doesn’t matter! Everyone’s in debt and no one cares! Yippeee! ( / sarc )
IMHO, we are screwed no matter who is in the White House. On a whim, I looked up Colorado and Washington state marijuana tax incomes. I’m not stating any personal opinion here, I was just curious.
According to Colorado.gov site, starting July 1, 2017, the state retail marijuana sales tax rate is 15%, the state share is 90% of the total tax collected, and the local government share is 10% of the total tax collected. 2019 (Jan-Oct) marijuana tax revenue = $249,278,569. Total marijuana tax revenue since Feb 2014 = $1,154,786,985
Washington Marijuana Revenues: The excise tax is 37 percent on retail sales. Sales of legal marijuana in Washington state have climbed up to $1.3 billion in fiscal year 2017 , up from $786 million in fiscal 2016, and $259 million the year before. Washington state collected a total of $367.4 million in legal marijuana income and license fees in fiscal year 2018, all but $5.4 million of it from the state’s marijuana excise, or sales tax. The data are in the Liquor and Cannabis Control Board’s FY 2018 Annual Report (p. 15).
And that is just on marijuana sales.
It doesn’t matter anymore. The bankers/politicians see the train wreck coming. They don’t care. “We the people” that elected them don’t seem to, so why should they? They’ll make sure they’re covered and to hell with everyone else.
I’ve seen articles about the incredible amount of silver JP Morgan has accumulated. Look at China, Russia, India and the gold that they’ve bought up in the past few years. Poland, And Germany trying to move their gold back to their own country. Even Texas is building its own vault to bring its own gold home. They see it coming and are making plans to survive.
Look at how European countries are working on systems that are not dollar based for trade. The Petro-dollar is on its way out. I could go on, but my point is that the signs are there.
I don’t pretend to begin to understand how it’ll all play out, but I think it’s gonna be fugly.
Quiet1
Dh saw it when he served over seas. In Korea, when they changed the money, those that loaned money or those who rented ladies of the evening trade lost half.
Don’t forget about states defaulting on their promised pensions. Illinois will go into bankruptcy and a Democrat president would bail them out which would unleash a flood of similar claims. 23 trillion and counting will look like pocket change. Buy precious metals, gold, silver and lead.
Sadly you speak the truth Chevy. Once the “Free Money” train really gets rolling (a 1K dollar a month Freedom Dividend for All from one Democratic hopeful) all those unfunded promises (aka pensions, state and city debts) will be funded by Modern Monetary Theory or a pretty name for MOAR money printing.
Hey it worked for Weimar Germany eh? Hyperinflation city where you get paid every week and RUN to the store to buy something before they raise the prices again.
Historically in Weimar Germany and in the former Soviet Union when it’s economics failed small farmers did very well Smuggling in food to trade for luxury items like gold jewelry and fine china and so forth. Stories of hauling in sacks of potatoes hidden inside a wagon of junk WITH a sacrificial basket of apples for the Soldiers to “Find” and steal abound in family stories.
The best thing you could send to your family members trapped in the former USSR during those days was GOOD QUALITY SEEDS. Seems even in economic Chaos the sun still rises, the rain falls and a good gardener who knows how to salvage materials for composting with Good Seeds continues to produce FOOD.
So thus Chevy in addition to your “Buy precious metals, gold, silver and lead.” I’d add seeds and knowledge on how to save them for next years crops. Oh and some way to conceal the excess food and those “other” items you want to own.
From what I read, hyperinflation was so bad in Germany that the workers were paid daily and the wives would pick up the cash at lunch time to go spend it as prices were not only going up daily but sometimes several times a day.
Half of my family came over from German as multimillionaires. Problem was when they got here it was worth about 12 bucks.
Gold has been doing lousy over the past month or so. Silver has been doing okay.
When a Kennian, a Chitcago community organizer can become President of this country, retire after eight years with a great pension, with secrete service protection for life, – can buy a mansion for nearly 12 million (see Fox web site) something stinks. Same with the Klintons, broke when they left the White House with stolen dishes in hand, are now multi multi millionaires ($250 mil est). Something stinks. I’m all for free enterprise but these people added nothing the the economy of the country – just like any other hedge fund manager or gangster.
hermit us
Did you see the Tucker Carlson show on Singer? The man who destroyed the town of Sydney Nebraska with his hedge fund take over destroying the up and coming business Cabela’s?
This why we have so much rotting garbage in DC.
Yes I saw that reporting about Cabela’s.
But how do we prevent everyone cashing out to the mega corporations – see Ring to Amazon – see Fitbit buyout, …
Soon we may be ruled by one company in consumer goods, one food outlet, one media company, one ag company, …
I’m not in favor of more government intervention, but the current anti-monopoly laws don’t seem to protect the citizens from corporate dictatorships.
Just for you to consider
What if Boomberg or Sucker offered Ken 10 million (pocket change) for MSB with an anti competition clause? A good marketing strategy for A*azon and a good way of censoring many of us free thinking preppers.
I would not blame him for taking the money for the future possible financial protection for his family. And would allow him to contribute to many community/church initiatives.
…still waiting for that offer! 😉
In fact, monopolies are what all business strives to become. It is not a sign of being evil, but of being the best…making the best of what people want and offering it at values they wish…and can afford..to pay. The guy with the best stuff gets the business…and should.
A Coercive-Monopoly can only exist via the use of Force, either criminal force, or Government force, both are evil.
The Sherman Anti-Trust Act is only used by the Government to blackmail large sums from companies, to benefit various political goals and to line the pockets of political people. In fact, the Act makes doing all business illegal..no matter what you make, or what you sell it for..it always may apply to your company…and the best lawyers cannot tell you if you will be found innocent, or guilty, of violating it. It is retro-active…and allows for triple damages, and provides for the imprisonment of whomever they wish to imprison. The Act can take away ALL OF YOUR PATENTS, allow your competition to use your technology…and force YOU to pay to teach them HOW to do so.
It is just a giant stick to threaten the biggest and richest companies..to shake money out of them.
Alcoa Aluminum refused to pay the political graft and was hit with an anti-trust suit in 1947…AFTER we no longer needed their product for WWII..and during which this company had invented ways of making the metal easier and faster and cheaper..than anyone else on Earth. So, the Government took all their patents, gave them to the competition, fined them Millions, and imprisoned Seven Vice-Presidents–one of whom
committed suicide because of it.
If you sell your product within a few cents of the competition, you are guilty of Price Fixing. If you sell your product lower than anyone else, you are Price Cutting to destroy competitors, even IF YOU ARE MAKING MONEY DOING SO. If you price your product HIGHER than the competition, you are guilty of Price Gouging…even if other products are available, which customers may freely obtain. Any way you value your product may be seen as a violation of the Sherman Anti-Trust Act.
Now, about your company’s contribution to MY CAMPAIGN…Mr. CEO?
Ision
Well stated. But what will be our recourse when one corporation controls an entire sector of our economy – besides we becoming totally self sufficient and going Galt.
I see the point where we have only one seller of goods, not through brick and mortar outlets. I see one company selling most of the food available in this country. I see one company producing most of the chemicals used for agriculture, medicines, … I see a time when only one company controls all our energy needs.
It has now become a race to see how fast many can become supper rich and societal concerns be damned. There always was a Scrooge, but now there seems to be so many more.
If there are no laws to prevent competition, those screwed over by any existing Monopoly are not prevented from providing alternatives. If no one has an alternative, and people obtain what they desire, what is the issue?
The best thing is to have an established monopoly delivering what people need..as the people, themselves, established this monopoly by their own choices.
You have only the right to action. If you do not like red shoes, you do not have to buy red shoes. But, if no one is offering you anything other than red shoes, your choice is to act to provide the shoes you want yourself….buy your own action…or pay for someone else to create the shoes you want. If you do not know how to make the shoes you wish, or cannot find someone to make them for you, or do not have the money to obtain the shoes you wish, tough. Learn to love red shoes.
If the government does not pass laws preventing competition, or your actions, act..or suck it up.
If there is only one seller of goods, it is either because they are doing the job…or they are protected by the law. If they are doing the job, good. If they are protected by law..and are not doing the job…revolt against the criminal government using coercive force upon you.
If any company achieves monopoly, they have done so by the will of the customer. It does not matter if you are not provided with what you wish…there is no law requiring this of others…only your own actions may provide…at your own expense.
I have no problem with the super rich, or becoming super rich, no matter the time involved…no matter the legal way one may have been able to do so. I do not care if there are nothing but Scrooges, as I am not asking them for their money, or a hand-out, or their labor, or their concern.
Fend for yourself, else, beg for someone to fend for you…just don’t expect anyone to give a damn about you…and do not demand service of others, nor their sacrifice to your benefit.
And never claim the right to the wealth, or the labor, of others.
Ision
I will try to explain my prediction about monopoly control by ever growing corporations. Not only will they dictate what is available (only red shoes) but will dictate the price and your contribution to socialist agendas like carbon credits.
Don’t think so. Just look at the control of the information on the major internet sites. Already, much of the public is clamming for either more freedom of speech or more censorship of information. Many say the government must step in.
So, what I am saying is that ever more powerful corporations gaining monopolies will lead to government takeover demanded by the population. Spells socialism or communism where people will be standing in line for that loaf of bread.
And that is the whole problem we face, become a sheeple and just suck it up. If we do not take action to support and diversify our society at the local level because it is so much easier to have big brother (corporations or Government) look after our needs, we deserve the chains we will wear.
hermit us said, “…the control of the information on the major internet sites.”
I’m going to be a bit off topic here, but, it’s true that big corp G O O G L E is controlling to an extent (sometimes a large extent) of information on the internet. When a site is identified as “on the right”, or “Patriotic”, conservative, “right wing”, they WILL push down the search engine rankings. Those of us in this niche know this for a fact. And that affects the bottom line (revenue potential). So, some sights are aware of that and may adjust their “free speech” so as not to run out of food on the table. It’s sick, monopolistic, and disgusting. But that’s what is going on. I (and others) are at the mercy of the Big G in this regard. But I digress…
Interesting that they quietly buried their original corporate mission statement “Don’t be evil”.
The abuses you fear can ONLY happen in a controlled economic environment, where law prevents competition, which means the government creates a coercive monopoly, from which you cannot escape.
No company can become a monopoly without customer support.
No company can offer everything the market may want and offers the market only what it has.
All companies may set the price for their goods as they see fit.
All companies may spend their money as they see fit.
Information is always controlled and always has been controlled.
Freedom of Speech is a personal action, which does not provide any obligation upon any other person, nor any rights to any other person’s property, nor any right to be heard, or to be understood.
There is no such thing as “more” freedom to speak and non-government censorship of your speech is not against the law, nor a violation of your freedom of speech.
Abuses a company inflicts upon their own customers, which are not a matter of criminal activity, not only directly disables a company from becoming a monopoly, but automatically bankrolls their competition.
It is always Government, which creates a coercive monopoly and prevents a market from functioning properly. Always.
Only a government can dictate a price, and force you to pay that price, for a product you do not want, and cannot use, under the threat of punishment. (Obama Care)
GOVERNMENT IS THE COERCIVE MONOPOLY OF FORCE. No other entity may employ legal force against others, unless this particular monopoly sanctions it.
Government abuse of the market is what creates the outcry for more government abuse, until there is no more market, and all people become property. (Collectivism)
Ision
Finally, I think you have connected the dots.
The sheeple are led, enticed, forced, … to support corporations in retail, media, energy, food products, … because they have the financial resources to buy out competition and paint the strongest attractions.
The corporations become monopolies or conglomerates of corporations that now control many aspects of consumer’s lives which begins to anger the sheeple. The protests begin and public opinion shifts to more government regulation and control.
The government is full of indoctrinated non-producers and career politicians who are eager to take more power. First they begin to regulate the corporations into implementing their socialist and globalist aims – see Cali utilities. When that does not give them the control they want, government takeover is the next step. Socialism is born – because it is fair you know..
I fear the next dot in this prediction is collapse as the free loaders sink the country. Civil unrest is unavoidable. And we did it to ourselves. Bread and circus.
“Every bubble has a pin”.
https://www.zerohedge.com/markets/every-bubble-eventually-finds-its-pin
Massive influx of paper money, should you buy gold & silver or lead & beans?
Chevy if your assuming that rule of law continues I.E. the politicians don’t just steal your Gold and Silver directly or TAX you for “Excessive Profits” then preserving your savings from inflation with PM’s is a good idea. BTW recent laws have been written and so far tabled ABOUT this very subject.
However that seems a tad foolish to assume that the Politicians will suddenly stop taxing and spending like drunken sailors.
That and there has to be some sort of functional money based economy to trade PM’s for goods or sell them to buy goods.
Even today there is the “White Market” where you spend your money at say Wal-Mart and the Government get’s their taxes. The “Grey Market” where you pay some handyman CASH or trade and leave it at that. The “Black Market” where your actively breaking the current LAWS to buy something. Not always immoral or evil, after all Anne Frank’s family was buying FOOD on the “Black Market” with out approved Nazi Ration Cards. Selling on the Black Market is fraught with many hazards. Like getting cheated in quality or quantity, getting robbed/killed of your PM’s OR Like getting ratted out to the Nazi’s…..
Beans and Lead does sound pretty good as long as Government.com “Fairness Agents” don’t confiscate your Horded Foods and evil gun stuff.
Even in America during both WW1 and WW2 anti-hording laws ENCOURAGED neighbors to snitch on you and they were REWARDED for that “patriotic duty”. So don’t be surprised if your going to have to hide your food storage and production AS well as Firearms-ammo from neighbors and “Fairness Agents”.
Inflation isn’t coming IT’s HERE. I just posted about salt and dried beans-rice prices climbing over in Open Comments. Inflation is just dribbling in now but when the Political Idiots start actually GIVING away Free Stuff then Hyperinflation will arrive like a Hurricane.
me2 My takeaway from your comment is to learn how to be savvy in non-currency transactions. I am not naive about the “Black Friday” hysteria, it would be good for people to experience it firsthand to give them an idea what it could be like. I will never forget two different dinner events; one where there was hardly any food to serve as the cooks ate most of it, and another where pushing, shoving, hoarding took place. The first one was at a church event, the second was at a company picnic.
Our neighborhood is armed like the calvary, and yet zero preparedness; so in the event of a food crunch good neighbors would turn into animals. It would be ugly.
Chevy not a bad take away. I’m taking this over to Off topic to chat Ok?
Chevy,
Lead and beans are always a safe investment.