I first saw this term used by writer James H. Kuntzler. It could be the rallying cry of all of the USA. Think about our federal government and our economy, which has been regulated nearly to death by our federal government over the last 100 years:
The United States Federal Government is bankrupt.
Some states, cities and other municipalities are either bankrupt, or teetering on the brink.
Our currency, the Dollar, is the world’s reserve currency. It supplanted the British Pound Sterling as world reserve currency in the early 20th Century. Now, many nations around the world wish to stop using the dollar as reserve. Confidence in the dollar is ebbing rapidly.
The national debt is rising faster and faster as Washington borrows from around the world. Washington cannot service the debt it has, much less more debt. So it prints more worthless currency.
The housing bubble is far from over.
The foreclosure and debt default crises are far from over.
Unemployment continues to rise, and the national rate is far higher than reported.
The US went from a manufacturing economy to a service economy in two generations. But widespread wealth is created in manufacturing.
Bad debt is omitted from financial statements to create illusions of financial solvency.
We perfected Second Generation Warfare, which is the military of various nations fighting each other in vast array.
Because of Washington’s foreign policies since WWII, we have created lots of enemies that will cheer at our demise.
Heavy reliance on foreign oil supply makes us vulnerable to political turmoil.
Heavy reliance on foreign food supply makes us vulnerable to political turmoil or world climactic changes.
The only constant in human existence is change.
Washington has created nearly every societal problem we face today. They wish to solve the problems by creating new programs and laws that will create new problems. And on it goes. Washington has created unsustainable economic climates and markets. The “blowback,” or unintended consequences of their regulation, is the change they cannot control. They appear to believe that more interference will fix the blowback of their former interference.
Amidst that effort, they wish to sustain the unsustainable. Said another way, they want to re-inflate the bubbles.
I cannot think of one government program that is sustainable in its present form. Even a program such as the US Post Office cannot sustain itself in its present form, as the numbers of mail pieces continues to shrink year to year.
I cannot think of one proposed government program that is sustainable in any form. Not health care…not bailouts…not stimulus programs.
Let’s look at the list of examples in the light of “unsustainability:”
- The Federal Government is bankrupt. How much talk have you heard about shutting down Federal programs? How much have you heard about drastically shrinking all Federal Spending? The present size of Federal Government is unsustainable, yet they want it to grow.
- Bankrupt state governments like California should have closed their doors when they could not balance their state budget in accordance with state law. But they continue trying to sustain the unsustainable.
- The dollar is going the way of the currency of Zimbabwe. Massive inflation is inevitable. The Federal Reserve must continue to print worthless currency to sustain the unsustainable. Washington has a tiger by the tail, and if they let go, the tiger will devour them.
- Washington must continue to borrow from other nations, or the house of cards blows away. To stop borrowing, or to have another nation refuse to lend, would force Washington into insolvency. Its present debt instruments would become worthless instantly.
- The housing bubble was built upon easy credit. If the nation’s lenders went back to the old days in which you had to put 10% or 20% down to buy a home, some current empty housing inventory would likely never be purchased. The housing disaster, brought to you by your Federal Government, will likely never recover to its bubble days. Bubbles are unsustainable.
- The financial industry around the world tasted of the American mortgage market. When it went bad, the whole world’s financial markets caught a cold. There are trillions of dollars in bad debt that must be dealt with, but that have not been disclosed yet. The current financial industry is unsustainable long into the future.
- American jobs are continuing to leave America for foreign shores. Consumers do not need to consume at the bubble pace, which relied on easy credit. The hot economy was unsustainable when you remove easy credit.
- Politicians promise millions of new jobs, and then offer government stimulus money to make it happen. But the stimulus is temporary and the jobs are not sustainable. Manufacturing jobs are leaving America forever. Because of layers of Federal regulations, American-made goods are not competitive.
- Generally Accepted Accounting Principles (GAAP) is a forsaken and rejected concept. When a financial statement can be prepared to take bad debt off the books, it no longer accurately reflects the true financial health of the entity. Over time, it will affect investors as they can no longer invest with true expectation of any future profit.
- Nations no longer line up their armies on the battlefield and shoot at each other. They have jumped to Fourth Generation Warfare, which is the guerilla warfare method. Second Generation warfare is helpless against Fourth. Yet, the American military industrial complex hurtles forward building unnecessary jet fighters and offensive weaponry. Wars of invasion are unsustainable.
- Bullying other nations with disrespectful foreign policy is unsustainable. Yet little changes from one administration to the next…except more bullying.
- Energy dependence is unsustainable. Energy independence is sustainable, and that has to include nuclear power to generate electricity.
- Food dependence is unsustainable. Food production in America has been supplanted by price supports for all manner of commodities, including corn for ethanol. But ethanol is not profitable or sustainable without government subsidy. And subsidies are not sustainable.
Washington is on a mad quest to sustain the unsustainable. This is the very reason that they can never succeed. This is the reason that they cannot change to being honest in their dealings. This is the reason they must continue on this path until the inevitable collapse occurs.
God help us when that collapse finally occurs. Not only will the United States collapse, but it will take the world economic system down with it.
Copyright 2009 by Russell D. Longcore