COVID-19 Is Not Even Close To America’s Biggest Problem
Authored by Bryce Buchanan via AmericanThinker.com,
The COVID-19 pandemic can be used to illustrate two problems that are both more destructive than the virus.
The problems relate to how Americans view the role of government in their lives and to the belief that government money can always fix problems.
Let’s look at the money issue first.
The immediate reaction of our government to the virus threat was to spend massive amounts of money. The latest news is that politicians plan to “boost” the economy with nearly two trillion dollars in spending and loans. “The package is coming in at about 10% of GDP. It’s very large,” says Larry Kudlow. For a plan of this size to sound like a good idea, you need to ignore some important economic facts.
Our country has unbelievable levels of debt, and our debt is rising rapidly. The numbers are staggering. The debt clock shows U.S. debt at $23 trillion (nearly 110% of the GDP) and unfunded liabilities of $77 trillion. That’s a conservative estimate. Boston University economist Laurence Kotlikoff, an expert on the national debt, says, “The true size of our fiscal problem is $222 trillion…20 times bigger than the official debt.” He says, “The government has gone out of its way to run up a Ponzi scheme and keep evidence of that off the books by using language to make it appear that we have a small debt.”
We are on the Titanic, headed for the debt iceberg. In brief moments of clear vision, we see the iceberg and know we must change course to avoid disaster. But a self-imposed fog allows us to pretend things are fine. Do not look away. Look directly at this problem. It’s real. Things that are unsustainable cannot be sustained. Reality always bats last.
There is also an important moral dimension to new spending programs. The government has spent all of its income and much more, so we should think of new spending programs as simply more debt being piled onto our children and grandchildren. The required first sentence of any new spending bill should be, “Our current consumption is more important to us than any burden we will place on future generations, therefore let’s place this much more debt on them.”
Fri, 03/27/2020 – 18:05Read More
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New York is currently leading the country by a significant margin when it comes to the number of coronavirus cases registered, so why are so many people there still out and about acting as though nothing is going on?
Governor Andrew Cuomo issued a stay at home order for the state that requires non-essential businesses to have their employees work from home. Exemptions are made for health care providers, financial institutions, and people working in the media.
You would think that New York City might look a bit like the “ghost towns” that many popular Italian cities like Rome have become as people adhere to orders to shelter in place, but that’s not the case at all. Locals could be seen packed in subways and trains without masks and heading out to public parks in New York City to catch some rays and play sports, completely disregarding the advice to stay six feet away from one another.
Democratic states have tended to be more proactive while some Republican governors followed Trump in downplaying the crisis
It was a tale of two beaches. On Florida’s Atlantic coast, at the height of spring break season, the sand was deserted in the cities of Miami Beach and Fort Lauderdale, where Democratic mayors had imposed closures to fight the spread of coronavirus.
Across the narrow neck of the state, the Gulf coast beaches in Clearwater were a world apart. There the Republican mayor had declined to impose a closure, and photos that would circle the world captured the result: thousands of carefree sunbathers lining the sand and mingling in the water.
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People still struggle to find food at grocery stores during this pandemic, but Jameson Altott is not as worried. He grows more than half the food for his family from his large garden at home, outside Pittsburgh.
“We are lucky to have preserved a lot of food and we still have canned fruits and vegetables and jams and berries in the freezer and meat in the freezer,” Altott says.
There has been a surge of people interested in growing their own food. Oregon State University’s Master Gardener program noticed this, and made their online vegetable gardening course free through the end of April. Their post on Facebook was shared more than 21,000 times.
“We’re being flooded with vegetable orders,” says George Ball, executive chairman of the Burpee Seed Company, based in Warminster, Penn.
Ball says he has noticed spikes in seed sales during bad times: the stock market crash of 1987, the dotcom bubble burst of 2000, and he remembers the two oil crises of the 1970s from his childhood. But he says he has not seen a spike this large and widespread.
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On Wednesday, Congress finally agreed on a government stimulus/bailout plan to battle the economic impacts of coronavirus to the tune of over $2 trillion. Meanwhile, the Federal Reserve has committed to monetize the debt with QE to infinity. Practically speaking, we’re talking about trillions of dollars being injected into the US economy – all of those dollars created out of thin air.
So, what does all of the money creation and government spending mean for gold?
Peter Schiff said that with the central bank and government response to the coronavirus, hyperinflation has gone from being the worst-case scenario to the most likely scenario. If that comes to pass, gold will go through the stratosphere.
Right now, the demand for dollars and dollar-denominated assets is high. But how long will that last once the printing press gets fired up?
“What the Federal Reserve has basically told the world is if you’re an owner of US Treasury bonds, you need to sell them to us because we’re going to buy the entire bond market,” Peter said in an interview with Fox Business.
The head of the World Health Organization, in charge of making life or death decisions on a grand scale, has been accused of covering up cholera epidemics, supporting a terrorist organization and inflating his resume to claim he conquered malaria and HIV.
Tedros Adhanom Ghegreyesus’ campaign to rewrite his questionable past has some wondering whether he is the right fit to lead the global agency through the coronavirus pandemic.
“Tedros is the second-to-last person who should be heading the world World Health Organization at this time,” foreign affairs expert Gordon Chang told Fox News. “The last person is (Chinese President) Xi Jinping.”
CHINA’S RELATIONSHIP WITH WHO CHIEF IN WAKE OF CORONAVIRUS OUTBREAK UNDER THE MICROSCOPE
The Ethiopian official, who was elected to lead the WHO in 2017, has been accused of cozying up to countries like China that have pledged millions of dollars to the agency.
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