This article was written by Tom Chatham and originally published at Project Chesapeake
In 1940 you could buy a nice cape cod style home for around $2,500. Someone entering the job market likely started out at $25 a week. A 1940 Buick with a straight 8 would run you $895 and up.
Why this stroll down memory lane? Because it is meant to show how much inflation has changed the price of things. When we still used money that was based on gold and silver, inflation was kept in check to some degree. Fractional reserve banking and excessive credit creation have distorted the value of things we depend on for life and we are coming to the end of that failed experiment. All of our recent prosperity has been paid for with our ability to print dollars out of thin air.
If you want to know where we are being led you only have to stroll down any city street where the homeless live, or you can look through the many pictures of the great depression. The American people are being systematically impoverished and it is being done knowingly by those in charge and is allowed by a dumbed down, apathetic public too busy staring at their iphone to notice.
If this nation is to survive and retain a reasonable standard of living and quality of life, we will have to downsize to a level that we can actually afford. We will need to forego the 2,000 sq. ft. $300,000 homes we all like so much and settle for a more affordable 900 sq. ft. $30,000 home we can actually pay for. We will have to give up the $40,000 autos coming out of Detroit now and settle for a smaller inexpensive model that can actually get 60 mpg.
We will also need to return to a financial system that is based on real value. This being gold and silver money. If we try to use anything else we are simply trying to fool ourselves. You cannot use a currency that does not act as a store of wealth over the long term.
We can do this by choice and salvage what is left of our country or we can continue on the current path and end up an impoverished country with a dictator in charge like most other failed nations in the world.
If we want to continue having a country worth living in we need to go back to what we know works and try to build up from there. We no longer have sufficient manufacturing capacity to employ all of the people in this country and any kind of welfare will not work without debasing the currency.
This will necessitate 20% of the population going back to living on small farms to insure they have a job and sufficient resources to care for their families. Nothing else in our current situation will work. We have too many unemployed people living off of the state and this will end soon. We will either have a mass exodus from the country or a mass extinction within it. As unpleasant as it sounds that is our future if we do not make substantial changes while we still have time. That time is nearly up.
Downsizing our lives and our wants will be a necessary change if we want to salvage something of our future. We have lived too long in fantasy land and now we must come back to reality. The west line has moved and we will never get back all of the production jobs we once had. We must accept that and accept that our country will be less productive and less prosperous in the future and learn to live within our means.