- we will never repay our $20 trillion-plus federal debts (if accounted for honestly)
– an amount equal to a staggering $175,000 per taxpayer;
- and that's only if you treat taxpayers equally, which, unfortunately, in America, we do not;
- as things stand today, we're counting on about 10% of the population to repay about 90% of these obligations.
And that, my friends, will never, ever happen. What will happen will be a truly epic financial disaster.
Here's the worst part… these financial problems have been staring us in the face since 2009. We know exactly what's causing them – vastly too much debt and not enough savings. But what has changed? Not a damn thing. The government's debts continue to grow and grow.
So… how do you reconcile these 2 views? How can you simultaneously believe that life will get tremendously better… and that our government, our way of life, and our financial system are all on the verge of an epic, generational crisis?
Simple. That's the way progress happens.
1. Progress isn't uniformal
Just consider the 20th century:
- more people were violently killed in the last century than in all of human history before that point, combined;
- that 100-year period saw the rise of communism and socialism, 2 of the greatest wealth-destroying ideas ever planted in the human mind;
- it saw China, the single-largest ethnic population, succumb to a civil war and spend most of the period locked in a totally senseless, self-imposed isolationism;
- it saw 2 World Wars,
- the Great Depression,
- Stalin, the Cold War, and
- the "Domino Theory" that sent so many U.S. citizens to die in jungles, for nothing.
2. Progress happens
During the last 100 years, we also saw:
- the discovery of antibiotics – the greatest medical advance of all time;
- we saw average life expectancy double, from around 30 years to more than 60, globally;
- the global population quadrupled.
See the point? We expect:
- a financial crisis because we understand accounting and math, but
- we expect prosperity because we understand history, technology, and progress.
There's no contradiction…
While I believe:
- the sovereign-debt bubble will end badly,
- huge fortunes will also be made during the next phase of the computer revolution.