Still unnoticed by a large part of the population is that we have been living through a period of relative impoverishment. Money has been squandered in welfare spending, bailing out banks or even — as in Europe — of fellow governments. But many people still do not feel the pain.
However, malinvestments have destroyed an immense amount of real wealth. Government spending for welfare programs and military ventures has caused increasing public debts and deficits in the Western world. These debts will never be paid back in real terms.
The welfare-warfare state is the biggest malinvestment today. It does not satisfy the preferences of freely interacting individuals and would be liquidated immediately if it were not continuously propped up by taxpayer money collected under the threat of violence.
But many people still do not feel the pain.
This statement is the key. What happens when:
1. People realize their wealth has been stolen by the government through Federal Reserve policies that devalue the dollar?
2. EBT, Social Security and welfare payments are cut or eliminated?
3. The government raises taxes again to pay off debt?
4. People realized that taxes are just redistribution?
5. People realize that they are enslaved to the government to pay off their malinvestments?
This is why I concentrate on financial information.
David DeGerolamo
