In 1986, an American company, WR Grace, prepared a TV ad dealing with their concern over America’s growing level of debt. The ad was not shown. The networks deemed it to be too controversial. Now that simple statement is worthy of several essays alone. But we, today, want you to just click on that ad and see the future as those with a foundation in fundamentals saw it so clearly, 25 years ago:
In case you're wondering. "What was the US debt in 1986 when the ad was made?" The debt of the United States as of September 30, 1986: $2.125 trillion. Today, it is $14.216 trillion. An almost seven fold increase in 25 years.
We know that many Americans are concerned about the US debt but have no idea what to do about it. Frankly, we don't really have to do anything about it. We can just let it keep rising at this geometric pace and all will occur in accord with our simple formula: deficits = debt = destruction.
The snake oil being sold to all of us by the likes of Greenspan, Bernanke, Krugman and Geithner has been well documented on these pages. Will any of this matter to them? Of course not. It will only matter to our grandchildren, just as presented in the WR Grace video twenty five years ago.
In 200+ years the debt of the US grew to $2 trillion. Resulting in massive devaluation of the purchasing power of the dollar (please click on "Purchasing Power of Dollar" in Key Statistics section at right.) In the past 25 years the debt has grown by $12 trillion. What do we have to show for $12 trillion that we could not have done without? We owe our grandchildren an answer to that question.
Watch the children in the video. Detroit is their future.
Never in the history of our world has a generation of entitled people been so selfish.