Socialist “Green New Deal” Points the Way to Hyperinflation
Socialist Venezuela’s economic collapse and hyperinflationary spiral serves as a warning for American investors. It’s what can happen when a government spends perpetually beyond its means and refuses to face reality.
Despite a U.S. economy that appears relatively strong and stable on the surface, its foundation is beginning to crack under the pressure of a $22 trillion (and growing) debt load.
Both Republicans and Democrats are to blame for that. But rising pro-socialist sentiment within the Democrat Party could turn our current debt danger into a clear and present disaster.
We are potentially just one election away from heading down a road to economic ruin – one that could bring about a Third World-style hyperinflation in the United States.
In his State of the Union Address last week, President Donald Trump specifically warned Americans of the dangers of socialism. He noted that it is gaining traction within some quarters of American politics.
He concluded, “Tonight, we renew our resolve that America will never be a socialist country.”
Tellingly, many Democrats refused to applaud in approval.
Bernie Sanders, who nearly won the Democrat presidential nomination in 2016 as an avowed socialist, scowled. His Senate colleague, Massachusetts ultra-liberal Ed Markey, sat stone faced with arms folded. Meanwhile, rising far-left star Alexandria Ocasio-Cortez tuned out Trump and plotted her next publicity stunt.
Cortez, Sanders, Markey, and 2020 presidential hopefuls including Cory Booker are pushing what they call a “Green New Deal.”
This radical proposal would be the biggest expansion of government size and power in history.
It would impose draconian, economically crippling restrictions on industry and transportation while authorizing trillions of dollars in new spending on everything from windmill farms, to universal college, to universal healthcare, to reparations for historically aggrieved groups, to “economic security” handouts to people who are “unable or unwilling to work.”
“The Green New Deal Would Spend the U.S. Into Oblivion,” blared a Bloomberg headline.
The article warned of “unrealistic and ruinously expensive economic proposals” contained in the Green New Deal. It would “take every big spending idea that has emerged on the political left in recent years and combine them into one large package deal, with little notion of how to pay for them all.”
The Green New Deal would plunge the United States into full-fledged socialism. If a champion of it like Cory Booker somehow wins the White House in 2020 and Republicans lose the Senate, there may be no stopping America’s march toward economic oblivion.
This political “black swan” scenario is just one among other potential triggers of hyperinflation. A world war or a systemic failure of the Fed-backed fractional reserve banking system are other potential triggering events.
A currency crisis of some magnitude (which may or may not reach the level of hyperinflation) appears to be inevitable even under favorable assumptions about our political and economic future.
The Congressional Budget Office (CBO), in its recent report “The Budget and Economic Outlook: 2019 to 2029,” projects an unprecedented surge in the size of the national debt relative to the economy.
This is just the CBO’s baseline forecast. Under more pessimistic assumptions (higher spending levels, lower tax revenues, and/or higher interest rates), the debt to GDP ratio could rise even more steeply.
And if a black swan event were to hit on the scale of a world war, the debt could hyperinflate – requiring a hyperinflation of the currency to service it.
As the CBO acknowledges in its report, “High and rising federal debt would reduce national saving and income, boost the government’s interest payments, limit lawmakers’ ability to respond to unforeseen events, and increase the likelihood of a fiscal crisis.”
All previous surges in debt, triggered by wars or economic crises, were unexpected and temporary in nature. The debt surge we now are in the midst of is chronic in nature – the result of decades of fiscally irresponsible policies.
It could have been avoided – and would have if politicians had been subject to the constraints of a sound money standard (gold and silver) all these years.
As Larry Parks of the Foundation of the Advancement of Monetary Education said in a recent Money Metals podcast interview, “With paper money there is no limit to how much money you can spend.
And if you have unlimited spending you get unlimited government. And if you have unlimited government the people in charge have unlimited power. They like that. Gold stands in the way.”
Gold is an essential asset for investors to own as protection against a currency debasement and possible hyperinflation. Silver, though, may be more the practical precious metal to have on hand if a wrecked economy degenerates into black market and barter transactions.
In hyperinflationary Venezuela, locals treat the official currency, the bolivar, like toilet paper. As it depreciates by the hour, they eagerly swap bolivars out for more stable foreign currencies or alternative underground currencies including gold, silver, and cryptocurrencies.
Surviving hyperinflation requires flexibility and adaptability. It will impoverish those who rely on conventional sources of income and savings.
You won’t necessarily get rich by owning precious metals, even as their prices shoot up in nominal terms. But you will preserve your purchasing power over time, regardless of how many trillions or quadrillions the government adds to the national debt.
Stefan Gleason is President of Money Metals Exchange, a precious metals dealer recently named “Best in the USA” by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC and in hundreds of publications such as the Wall Street Journal, TheStreet.com, and Seeking Alpha.
https://www.activistpost.com/2019/02/socialist-green-new-deal-points-the-way-to-hyperinflation.html
美「綠色新政」挨批：社會主義的特洛伊木馬
【新唐人2019年02月12日訊】美國激進的民主黨眾議員奧克西奧-科爾特斯（Alexandria Ocasio-Cortez）倡導所謂「綠色新政」（Green New Deal），當前已成為美國熱門話題。但其所倡議的內容被批瘋狂，且實質是社會主義意識形態的延伸。
所謂「綠色新政」（Green New Deal），是新當選的29歲的紐約州眾議員、民主社會主義者奧克西奧-科爾特斯（Alexandria Ocasio-Cortez）所提出的一套治理全球變暖的方案，但儘管被批瘋狂，卻俘獲了眾多自由派人士，包括幾乎所有目前已正式宣布參加2020年總統競選的民主黨人。
然而，奧克西奧-科爾特斯的方案遭到眾多有理智的美國人反對。其中，由保守派創建的能源倡導組織「Power the Future」2月8日在其博客上發文，概括了「綠色新政」的主要內容，並揭露這一倡議不過是特洛伊木馬（Trojan Horse），與解決全球變暖沒有多大幹係。
博文指出，「綠色新政」宣稱是一項旨在結束全球變暖的環境政策，但是，當奧克西奧-科爾特斯公布了包含細節的解決方案、且她的辦公室2月7日發表了一系列論題概述其目標後，「Power the Future」可以肯定，「綠色新政」是一項很極端的計劃。
博文認為，「綠色新政」其實是一匹綠色的特洛伊木馬，只是以理想的環境政策作為幌子，憑藉偽裝把社會主義帶入美國。
下面是「Power the Future」對「綠色新政」的概括：
1、迫使政府單一支付，接管醫療保健。
2、為那些「不願」工作的人提供免費資金。
3、保證提供政府工作 。
4、重建或翻新改造美國的每個家庭。
5、給每個人免費家居。
6、淘汰傳統汽車。
7、消除航空旅行（對不起了，夏威夷，相信你會困在那裡） 。
8、禁養奶牛（或至少研發不「放屁」的奶牛） 。
https://www.ntdtv.com/b5/2019/02/11/a102509467.html
绿色新政绿色新政
《绿色新政》是由联合国秘书长潘基文在2008年12月11日的联合国气候变化大会上提出的一个新概念，是对环境友好型政策的统称，主要涉及环境保护、污染防治、节能减排、气候变化等与人和自然的可持续发展相关的重大问题。潘基文呼吁全球领导人在投资方面，转向能够创造更多工作机会的环境项目，在应对气候变化方面进行投资，促进绿色经济增长和就业，以修复支撑全球经济的自然生态系统。面对当今世界经济发展的新趋势、新潮流和世界竞争的新格局、新变化，中国必须抓住这一千载难逢的“绿色”机遇，抢占新一轮全球竞争的“制高点”，以迎战决定未来国运的全球绿色竞争。
https://baike.baidu.com/item/%E7%BB%BF%E8%89%B2%E6%96%B0%E6%94%BF
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