The next generation will look back at the current period with utter astonishment. The archives will be riddled with debates and all manner of euphemisms for what led to the collapse of the world’s first and last fiat reserve currency.
It is a process well underway. Take a look at two seemingly unrelated, though current, economic-financial trends: Food stamps and subprime.
The case of spending compared with risk. Food assistance is but a tiny tributary broken off from a massive river of denial.
Subprime represents the nadir of ‘risk-on’ fueled monetary euphoria. Spending that comes from money that does not exist. Why, when the next bubble bursts, they will need to step in even more.
Of course, it’s not exactly an efficient form of spending:
As The Daily Signal reports:
(This year the U. S. Department of Agriculture misspent $2.4 billion on food stamps, according to a November report from the USDA Office of Inspector General.’
‘Misspending’ means the USDA gave a household either more or less food stamp benefits than it should have received. Historical data shows most misspending results in overpayments.(What’s even more incredible is the dollars misspent on food stamps equates to at least 10% of the dollar value of available above ground silver).
This post was published at Silver-Coin-Investor on Dec 31, 2014.
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