“Facilis descensus Averno.” – Virgil
Delivering Tomorrow’s Burdens
In his timeless epic, The Aeneid, the Roman poet Virgil wisely noted that “the descent to hell is easy,” a sentiment that resonates deeply in today’s world. This saying serves as a poignant reminder of the treacherous path of currency debasement, a perilous trend we face in our contemporary society.
Just yesterday, the House of Representatives took swift action that furthered America’s troubling trajectory. With minimal opposition, federal spending was increased, and the debt ceiling was suspended for the next two years—allowing lawmakers to enjoy their summer recess with little regard for the implications of their decisions.
The temptation of securing something for nothing is too enticing for even the most principled politicians to resist. Armed with an endless supply of fictitious currency, there’s little incentive for them to take risks. The burden of public debt has far exceeded honest repayment capabilities, but that, it seems, is a problem for another day.
Today’s representative government in America has shifted away from its original purpose of safeguarding individual freedoms and making tough decisions aimed at the country’s future well-being. Instead, it has become a matter of convenience—suspending the debt ceiling to maintain a comfortable descent into chaos.
Consequences of Past Actions
Humans often struggle to comprehend the far-reaching consequences of their self-made catastrophes. It’s not a lack of capacity that defines this struggle but rather a tendency to turn a blind eye.
Confronting the harsh realities of life is challenging, as it forces an acknowledgment that current strategies are failing and that rectifying past mistakes requires immediate action. Choosing to remain in a state of delusion may provide temporary relief, but as accumulated wreckage from past actions increases, the inevitable reckoning looms closer.
Congress seems blissfully unaware of this impending crisis. If they were truly cognizant, they would prioritize addressing the nation’s fiscal challenges by taking substantial measures. Instead, they continue to amplify the problems stemming from previous decisions, recklessly expanding national debt as if tomorrow holds no consequences.
Consider the data: at the dawn of the millennium, the national debt stood at $5.7 trillion. By 2010, it had surged to $13.5 trillion, and projections suggest it will exceed $24 trillion by 2020. This reflects a staggering 320 percent increase in national debt over two decades, while the nominal gross domestic product (GDP) has only risen by 100 percent. The gap between these figures continues to widen.
Understanding the Impending Crisis
When the next recession hits, it’s expected that Washington will deploy extensive debt-fueled stimulus measures, causing national debt to skyrocket while GDP stagnates or even declines. The disparity between these paths will likely be resolved through default or inflation—most likely the latter, which Washington seems to favor.
Throughout the 21st century, many have fallen prey to the alluring myths of democracy. This misguided belief promotes a perilous archetype: the tyranny of the majority, which leads to chronic deficits and rampant inflation. Voters seek benefits without the cost, often electing representatives who promise extensive social programs funded by debt.
As deficits pile up and currency devaluation accelerates, a tipping point will inevitably arrive. Confidence will wane, prices will surge, and the nation could face profound political, economic, and cultural turmoil.
Indeed, the descent into chaos is easy. Yet, Virgil also offers a powerful admonition: “Sed revocare gradum, superasque evadere ad auras, Hoc opus, hic labor est,” which suggests—“But to retrace the steps and ascend back to the upper realms; this is the task, and here lies the mighty labor.”
While Congress, the Treasury Secretary, and the President may choose to ignore these realities, an increasing number of Americans are awakening to the harsh truths of our impending catastrophe. The realization is sinking in that we face serious challenges ahead.
Woohoo!
Sincerely,
MN Gordon
for Economic Prism
Return from Realizing the Full Implications of the Forthcoming Catastrophe to Economic Prism
