Economic Armageddon Is Coming

Thursday, January 3, 2013
By Paul Martin

Monty Pelerin
Economicnoise.com
Jan 3 2012

The US and other modern industrialized nations are headed for economic collapse. Political excesses created unwieldly and insolvent social welfare states in every modern democracy. The notion of providing for those who cannot or do not provide for themselves has limits. As Lady Margaret Thatcher expressed the problem:

The trouble with Socialism is, sooner or later, you run out of other people’s money.

The Political Problem

Those dependent on the welfare state are unaware that their benefits are not sustainable. Most believe tomorrow will be like today and the checks will keep coming from Mother Government. Political power was gained based on promising these benefits. No politician will risk his position by trying to reduce them. No democratic society has ever rolled them back via peaceful political means.

Governments in the developed world are out of money. They can either cut back the welfare state or attempt to fund it by ever-increasing taxes. The latter route represents economic suicide as increasing taxes destroys the economy. The former route represents political suicide. Dependency, once accepted as a way of life, cannot be cured without jeopardizing the existence of government and society.

The Extent of The Financial Problems

The Rest…HERE

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