This is Money Series Part 9 in Mom and Dad Normal learn about money.
“What economic system is sustainable?” Mom Normal asks her daughter, Sue B. Normal.
“The world as a whole is sustainable.” Sue answers. “If you look at history, what happens? Empires rise. Macedonia, China, Egypt, Greece, Rome, Great Britain, and now the United States. Empires rise, they display their power, and after a few hundred years, they fall. That’s the sustainable world model. So now it’s the USA’s turn to fall. That’s all that’s happening here. Some other country will rise next. And then they will fall.”
“Whoa there, Daughter.” Says Baby Boomer Dad. “ The USA is the greatest country the world has ever seen. It’s not an empire. It’s a model for everyone to copy. The USA is not going to fall.”
Abe breaks out in hysterical laughter.
Sue and Abe exchange looks. Sue smiles.
“Dad,” she says softly. “The USA controls the currency used to buy oil, forcing every other country in the world to buy U S Dollars if they are going to buy oil to have electricity. No other country can grow unless it buys U S Dollars. As a result, the dollar is a strong currency in the world market. Other countries hold it as their reserve currency. Other countries hold the US Debt. But in the U.S., young people graduate from college with high debt, but no jobs. The Ponzi scheme of the Federal Reserve has no option but to keep increasing the debt of the United States of America, with no end. As the U S Debt increases, the Federal Reserve prints more money. As it prints more money, inflation goes up. Eventually, the purchasing power of the dollar in the U.S. will be too low for Americans to live comfortably. America becomes a Third World Country, and some other nation takes over the position of Empire.”
“ The income gap between rich and poor has increased so dramatically that the six members of the WalMart family have more income than the bottom 40% of the American people. And the WalMart family aren’t even Spoons!” Abe added. “Top corporate CEOs make 400% of the average salary of their people. That’s up from 40% when Reagan was President.”
“Oh, I don’t know. Inflation hasn’t been so bad,” Mom observed.
“How did we start this conversation?” said Sue. “ In Part 1, you pointed out that your credit card bill today was 100% higher than it was five years ago, purchasing the same goods and services. That’s 20% inflation per year in the last five years.”
“But the government says inflation was only about 2% over the last five years,” said Mom.
“Don’t be ridiculous. Look at your bills. The government changed the counting system, so you wouldn’t know.” Said Sue.
“You know what you are?” challenged Dad. “You’re a conspiracy theorist!”
“If I am,” said Sue, “then the toothpaste of Knowledge has squeezed out of my tube of Understanding. I can’t stop knowing what I know.”
“Me,too,” said Abe. “Now that I understand the Evil Intention, how can I get a job and work for this Corporate Satan? What can my generation do, when we’ll never have savings, never buy houses, never move out of our parents’ basement?”
Next: Where is this Voodoo economic disaster leading our next generations?