The U.S. Government and Insolvency

Michael Rozeff has the lead article on LewRockwell.com today.  He says that the U.S. is insolvent.  I'm not sure if this is technically true or not, but it certainly will be if it is not now.  It really depends on whether you count the unfunded liabilities of Medicare and Social Security.

If the U.S. government severely cut spending, including Medicare, Social Security, pensions, and the military, then the government could make good on its promises in regards to treasuries.  Of course, this is a major "if" that will not happen.  It will only happen when Congress is forced to because of the threat of hyperinflation and/or default.

If the government cut every single program other than the military, Medicare, and Social Security, it most likely would still not be able to fulfill its promises.  As time goes on, the hole just gets deeper and deeper.

At the end of his article, Rozeff says, "it is prudent to take measures to make oneself as independent of government as one possibly can."  This is really the key point.  There is really nothing you can do about the train wreck that is about to occur.  The only thing you can do is prepare yourself and those you care about (if they'll listen).  The best way to do that is to try your best not to rely on government.

There is one other thing you can do too.  You can help in the education process.  You can inform people of what is to come (again, if they're willing to listen) and you can let them know that, in the words of Reagan, government is not the solution, it is the problem.  The more people that realize this, the better chance we have of being in a state of liberty after the U.S. government comes crashing down from all of its promises and debt.

The train wreck coming will be quite a sight to see.  For those paying attention, it is easy to see it coming.  Others will continue to keep their eyes closed to the obvious.  These people think that there is such a thing as a free lunch.