Crash Course: Chapter 13 - A National Failure to Save by Chris Martenson

Chapter 13 (A National Failure To Save): "The next twenty years are going to be completely unlike the last twenty years." -- Dr. Martenson. Chapter 13 begins his explanation for this deeply held belief. On every level of our society, there has been a failure to save. Individuals, cities, counties, states, and corporations have all failed to save, but, more importantly, so has our federal government. Our government has pursued a reckless policy of debt accumulation, while neglecting saving and investing, leading to Dr. Martensons claim that the United States is insolvent. Insolvency, which occurs when ones liabilities exceed assets, is first step on the road to bankruptcy.

http://www.chrismartenson.com

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[bayleybomber]

in my country interest is taxed; for pesants" as secondary income(49%) If inflation is at 2 % and interest at a generous % 5 the interest does'nt cover inflation. if you put your lottery winnings in a bank your gaurnted to lose the value of your money. let alone if you spent your120,000 p a returnes. BANKS ARE SHADY. all western nations have incommon the lie based ecconnomy, inflation over 4% AND .unempolyment to the tune of ,' well" exsecive of 30 %

[christo930]

Notice that the peak in savings was in the early 80's when short term interest rates were very high and declined steadily as the short term interest rate fell. The high interest rate has 2 main features as to our savings, consumer credit is expensive and people are less likely to borrow and bank account interest is high encouraging people to save more (to earn high rates of interest).

[qonf]

@darrellcheng invest in assets that do not decline in value, or at the very least do not decline in value at the rate of inflation.

Some people claim that gold/silver is the best option, others claim realestate (but as subprime showed, you have to be carefull here), others still claim stock in robust industry is best option. The wildest believers in the hard crash claim that survival gear is the only way to go. There are no easy answers.

[Standuble]

I guess its going to end up like what happened in the third century Roman Empire. Rampant inflation caused city dwellers to leave in floods for the country where they literally sold themselves into slavery to larger land owners. They became the first serfs, a business model for the poor for more than a 1000 years. Our children will be serfs again and the middle class will be no more.

[jackgoldman1]

Inflation, or currency debasement, leads to a separation of the classes as elites have their assets inflated into being "super rich". Banks benefit because they create debt and credit. Government wins with higher taxes. Worker bees who rent lose. The silver price of gasoline in 2011 is 14 cents a gallon. Banks and governments promote inflation. It makes them more money. End game? $4,000 gold, $128 silver, $4,000 Dow, massive defaults, before 2020. Protect yourself.

[Guarinbano]

1 moron watched this

[hitadjp]

@darrellcheng buy silver!

[MacabreManifesto]

All of this is why I am a technocrat. When the gold standard becomes invalid simply because there is not enough gold to match the value of labor and resources in society, we have reached a new standard. Matenson is partly right when he says that money is a claim on human labor but consider this: The amount of calories expended by humans has significantly decreased ever since the industrial revolution, yet our growth rates have increased and our total output has vastly increased.

[MacabreManifesto]

@MacabreManifesto ...lesson is: Become a millionaire retire immediately (that is if you are not such a pig that 120,000$ isn't enough for you [I personally feel that plenty of hedonistic desires would be fulfilled if everyone had their own $120,000 a year]).