Let's face it: The US Government has over $100 trillion in unfunded liabilities when Social Security, Medicare and pensions are added to the National Debt. This amount is incomprehensible to most people, but it is real. There is no way the US can meet these obligations under our current financial system. If we ignore this problem much longer, the government will default, the dollar will become worthless, and social chaos will ensue.
In order to avoid this outcome, we must construct a new system wherein our obligations will be secured by tangible assets. This will ensure the value of our money and promote real economic growth. Unfortunately, we do not have enough assets to accomplish this at the present time. Therefor, we need new solutions to this problem and we need them fast.
One idea is to revalue our Treasury gold to current market prices. However, this would only add about $1 trillion to our balance sheet, but that would barely be a drop in our $1 trillion bucket. As a result, we need to think in quantum terms if we are going to solve this problem before it devours us. That means that we need exponential increases in the value of our assets.
A better idea would be to establish a gold price at 10x market value, which would increase our assets by about $10 trillion. In turn, these assets would be used as 10% collateral for the $1 trillion in obligations we now owe. This would not absolutely guarantee redemption, but it would still be the most secure in the world. Details to follow...
In order to avoid this outcome, we must construct a new system wherein our obligations will be secured by tangible assets. This will ensure the value of our money and promote real economic growth. Unfortunately, we do not have enough assets to accomplish this at the present time. Therefor, we need new solutions to this problem and we need them fast.
One idea is to revalue our Treasury gold to current market prices. However, this would only add about $1 trillion to our balance sheet, but that would barely be a drop in our $1 trillion bucket. As a result, we need to think in quantum terms if we are going to solve this problem before it devours us. That means that we need exponential increases in the value of our assets.
A better idea would be to establish a gold price at 10x market value, which would increase our assets by about $10 trillion. In turn, these assets would be used as 10% collateral for the $1 trillion in obligations we now owe. This would not absolutely guarantee redemption, but it would still be the most secure in the world. Details to follow...