So by now I think everyone knows how politics play such a big role in the economy in how things are run and how inflation can destroy things over time. More to the point it also shows how things can go badly which is exactly what we’re seeing. Everyone has heard of the turmoil in Europe where many nations of the European Union are in terrible financial shape (much like the US) with rising unemployment and rising prices. Greece is in the worst shape of them all. Recently it seems that various world leaders have pledged to keep Greece alive by helping with “stimulus” and putting money into the failing country. In case you haven’t heard the country currently has sky high unemployment, rapid inflation which has made people resort to bartering and a failing government which just announced in a few months that they will no longer be able to pay out wages to government employees. While the problems are several fold it does appear that government overspending played a role in it with a national health care system of over borrowing of money since Greece takes part in the IMF which is basically the European equivalent of the Federal Reserve. The creating of wealth out of thin air helps to create a system of over borrowing and inflation which eventually does end up collapsing in on itself. While some people will take it as a good sign that other countries which to help bail out Greece this is a mistake. What is happening there is a smaller version of what is slowly happening here in America due to overspending, over taxing and over printing. While we can get away with it for a while this is just one example of many how such systems eventually fail and collapse in on themselves. This is why it’s very important that we show people and make them understand why the creation of wealth out of thin air or letting people control the entire money supply is not in the best interest of anyone. It will be difficult too because any bail out which the country gets will come with terms which they will have to follow which will only make things more difficult. On top of this the government will likely suffer from the same problem as ours in that the feeling of urgency will be lifted. Once this happens governments tend to go right back to the same old habits of over borrowing, over spending and manipulating interest rates. We’re already seeing this on a smaller scale in place such as California where the rate of full time employment rate is less then half of the current population and the state government faces a budget shortfall of over $16 billion. With some of the highest taxes in the country and the state rated for more then three years in a row as one of the worst states to start a business it’s easy to understand why the state is in such bad shape. What is truly sad though is that as state and city governments are at risk or going bankrupt counties are wasting time doing things such as literally sending police door to door to get raw milk from people. California however is not alone as multiple states all over the USA in in a terrible financial shape which looks like it will only get worse in the near future. People don’t always want to admit it but the economic turmoil we’re now dealing with in America is exactly due to bad politics controlling the economy.
Shortfall in California’s Budget Swells to $16 Billion : http://www.infowars.com/shortfall-in-californias-budget-swells-to-16-billion/