America Is Bankrupt

This article is a little scary. Here's an excerpt:

Looking at the government's finances in a serious way is like expecting a Ponzi scheme operator's numbers to add up. They don't. And they never will; that's the game. Making political promises is easier than paying for them. Theoretically these debts could be inflated away by printing more dollars. But legally this would require the repeal of the 1972 Social Security Act, which pegs benefits to inflation.

And that will not be a simple matter.

Worse, these financial imbalances stem from direct wealth redistribution, from one generation to the next. They're a disincentive for saving and investment. They hinder current growth today while bankrupting America tomorrow. But politically they're sacred cows.

Ironically, the people most threatened by this hydra-headed financial and political monster are the very same people these programs were designed to benefit: the middle class.

I still don't understand the flight to gold when everything else goes bad. There seems to be this idea that gold has some inherent value beyond the supply and demand for it. Maybe I should do some research on the gold standard…

Found via Jay SoloUPDATE: I found this on the gold standard. Pretty interesting.