Texas Congressman and Presidential candidate Ron Paul took time off his electoral campaign on February 27th to discuss the ramifications of current economic policy, our growing national debt, and the comparisons made recently by Senator Jeff Sessions between the US and Greece.
In his thesis, Congressman Paul noted that if we stay on our present course, the inevitable result will be a ‘Greek-style’ collapse and chaos, where the government no longer has the ability to pay its obligations and continue with its promises of economic guidance.
Those who understand the underpinnings of the dollar and how the Federal Reserve works have known for some time that we are on an unsustainable course, that major chaos is in store if nothing is done quickly to reform things. Politicians pay lip-service to reforms that never materialize or turn out to be at best small and meaningless, or at worst actively harmful. It seems more and more inevitable that because the necessary changes would be too inconvenient for the elites to enact now, we will get them later Greek-style, through collapse and chaos. – Paul.House.gov
Much of the data that Congressman Paul refers to in his assessment is based on a Senate Budget Committee study by Senator Jeff Sessions that shows US per capita debt is greater than even that of Greece, Ireland, and Italy, all countries that are currently seeking bailouts to avoid sovereign defaults. In the chart provided to the left of this article, US per capita debt has now reached $44,215 in a population of over 300 million, while the second highest per capita rate of $43,887 is based on a population of only 4.5 million.
For America, the ability to increase our debt without requiring a bailout similar to the PIIGS nations of Europe is hedged solely on the power we have in the dollar remaining the world’s reserve currency. Should that anchor in the global economy change, and no longer be accepted as the standard trade currency, then Congressman Paul’s view of collapse and chaos would come to pass for the American people nearly overnight.
Unfortunately, cracks are already beginning to show in global dependancy on the dollar, and as the world’s reserve currency. Recently, Iran passed a new proposal to sell oil in currencies other than the US dollar, and China has been forging new trade agreements with Japan, India, and other Asian countries to use their national currencies, and not the dollar in these transactions.
Growth of the National Debt and deficit spending did not start with the Obama administration, but it has accelerated at a much greater rate than under previous administrations. Presidential candidate Ron Paul has spent his life in office warning the American people of the consequences of borrowing, and spending that money to the detriment of future generations. If the present course of government spending does not change, then Congressman Paul predicts that the inevitable course for America will mirror Greece, and we will experience the double-sided pain of both collapse and chaos in our economy.