No matter what Congress and President Obama decide to do about the fiscal cliff this winter, the national debt will keep rising and the U.S. government will soon hit its borrowing limit.
San Diego, CA (PRWEB) November 19, 2012
Obama’s recent words, “We can’t cut our way to prosperity” echoed a continuing debate between Keynesian economics and Austrian economics. With the upcoming fiscal cliff, many are worried about an upcoming economic crisis. Which economic philosophy is better at predicting the economy’s future? Success Council, a group teaching people how to prepare, protect their assets, and profit from an economic collapse, just released on online video containing the answer: Austrians. Austrian economists predicted the burst of the housing bubble, the 2008 stock market crash, and are calling for another huge economic collapse on the coat tails of Obama’s election.
In fact, in 2001, Ron Paul, a libertarian and former Republican Party presidential hopeful, predicted the housing bubble collapse saying:
“the special privileges granted to Fannie and Freddie have distorted the housing market by allowing them to attract capital they could not attract under the pure market conditions…Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as the their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.”
And why didn’t President Obama or former candidate Mitt Romney know what Ron Paul knew about the housing bubble? Simple: They are Keynesians in their economic philosophies.
According to Wikipedia, Keynesians believe that the government should be involved “regulating” economies and “stimulating” industries. While Austrians believe in the purest form of free market.
With hauntingly familiar words, Dr. Paul warns us again that the United States is headed for the same fate as Greece or Spain. Dr. Paul recently said, “We are so far gone” over the fiscal cliff that it really didn’t matter who was elected.
He also commented that the election was largely irrelevant because of the similarities of the candidates: 1) both waging wars we cannot win or afford; 2) both stomping on civil liberties through acts such as the NDAA; and 3) neither candidate making any real headway to reduce the deficit.
In his farewell speech to congress, Ron Paul continued to warn, "A dollar crisis will bring the current out-of-control system to its knees."
So what’s coming now that Obama has won the election? You guessed it: More spending. Obama remarked on Friday that, “We can’t cut our way to prosperity.” Implying we can somehow spend our way to prosperity.
So, what are the libertarians predicting: huge debt, huge inflation, and a crash.
And like America, the European Union (EU) is suffering a similar fate because of its debt obligations. And according to The Herald website, the EU has recently downgraded its economic forecast for the 27 country bloc. Due to its incredible debt obligations, the European Commission warns the economy will decline further, and recover more slowly.
The Herald website reports that the Commission “confirmed its prediction that the 17 countries that use the euro will slide into recession this year[.]”
On Wednesday November 7, the day after Obama was elected, gold prices rose as the stock market sank. According to the Wall Street Journal, the stock market will continue to sink as the US looms towards a “fiscal cliff.”
This fiscal cliff is set to hit January 1, 2013, as Bush tax cuts expire along with mandatory domestic spending cuts. The Washington Post reports that “This would be the single largest act of debt reduction in American history, cutting some $1.1 trillion from the deficit in the next two years.”
However, despite these massive cuts (which Obama has already vowed not to let happen), the Post reports: “Budget experts say that no matter what Congress and President Obama decide to do about the fiscal cliff this winter, the national debt will keep rising and the U.S. government will soon hit its borrowing limit.”
What does this mean? 1) Another increase in the “deficit ceiling;” 2) possibly another downgrade in the U.S.’s credit rating; and 3) of course, printing more dollars. The effect? Your dollars are now worth less because there is less worldwide faith in them and there are many, many more of them.
Who could have predicted this? Well, according to Success Council’s video Austrians did predict the upcoming economic collapse.
And more importantly, what can you do to disconnect your wealth from the dollar? You can attend a free online training on how to profit and prosper when the economic crisis hits.
About Success Council:
Success Council was founded in 2012, with the goal of teaching people how to protect their assets and profit from the greatest wealth transfer in history. Their mission is to: 1) Educate 10 million people through their online interactive training events; 2) Make 100,000 families wealthy through the information contained in their Members’ Area; 3) Create 5,000 leaders armed with the knowledge, skills and resources based on the fundamentals of liberty; and the ultimate goal, is to 4) Create One Free Society.