Daddy told me, “Son, don’t spend more than your income.” Daddy was an Austrian-school economist with a sixth grade education! He parlayed his meager education to a comfortable life as owner of two gas stations and a drug store. He died without owing a dollar and left mother comfortable for life. He had more wisdom than the Ph.Ds. that have been destroying our economy through mistakes, misjudgments, and malfeasance–especially malfeasance.

I am convinced the glory days are gone forever. America has seen her best years. For the first time in history young couples are not enjoying the standard of living their parents did. In fact, most people in North America have seen their standard of living fall. The standard of living is closely tied to the quality of life we all experience. Americans no longer lead in the standard of living. We are now fifth in the world. And going down, down, down.

However, to keep everything in perspective, it is a fact that the average American lives a life that would make the kings of Europe 300 years ago salivate with envy. Think indoor plumbing, hot showers, medical care, dental extraction, communications, transportation, lifespans, entertainment, etc. But we aren’t living 300 years ago and we have become captivated with the “good” life that will continue to drastically decline.

Americans have no confidence that Social Security will “be there” when they reach retirement age—and what may be there will be only for the neediest. They see middle class incomes going down and no jobs as secure. In my opinion, their fears, concerns, and pessimism are justified.

Our national debt is over 18 trillion dollars! That was trillion, not billion. It is difficult for us to comprehend such numbers, but let me try. If you had started, at the birth of Christ, spending a million dollars each day and faithfully spent one million dollars per day, it would take you until 2704 to spend one trillion! And our official debt is more than 18 trillion dollars! That means every U.S. taxpayer owes more than 1.1 million dollars and climbing! That is $56,000 owed by every American citizen.

As the national debt continues to swell, the economy will continue to be sluggish, the tax burden will continue to spiral, and the middle class will continue to shrink.

But here’s the “rest of the story.” We owe far more than 18 trillion because there is more than 221 trillion dollars of debt that is “off the books” according to National Public Radio! That debt consists of unfunded federal pension obligations—government employees, military, Medicare, Medicaid, and Social Security. There is no profit in detailing how we got in this deep well; we all know how we got there. The question is: how do we get out? (The first rule to follow, according to Daddy, is when you find yourself in a deep hole, stop digging.) How do we pay off our debts and get out of the hole? The answer is: painfully and slowly! Paying off the national debt will be like making payments on a dead horse.

When a person, family, business, or a nation owes more debt than can be serviced, no one will lend them more money. Of course, individuals would be in prison for fraud, but governments don’t go to prison—and not enough politicians do. But then, Illinois does have the record of governors in the pokey. Four of the last seven Illinois governors have made or are making license plates!

Governments usually do one of two things when they get into a “mess” such as we are in. They repudiate all obligations or print worthless money day and night. The first will not be done because it would result in riot, rebellion, and revolution—literally. So, to the printing presses!

Think of the reaction if retired military men, welfare recipients, and Social Security beneficiaries were told, “No more money!” They would storm Capitol Hill and the White House and might bring back the guillotine, used so efficiently (and ruthlessly) during the French revolution–but with more justification!

No, the politicians’ answer to our horrendous debt will be to run the printing presses. Then inflation and interest rates will race each other for the moon. Our national debt will be paid off with worthless dollars. You have always wanted to live in a million dollar house, and you will—the same one in which you now live. Of course, it may cost $100.00 to purchase a newspaper and there will be few newspapers available.

While pessimism is not my nature, I see a dark cloud on the horizon. Informed Americans should make plans for some very difficult years ahead.

http://bit.ly/1iMLVfY Watch these 8 minute videos of my lecture at the University of North Dakota: “A Christian Challenges New Atheists to Put Up or Shut Up!”

An old college friend asked me recently where I really think America is headed. I basically said that our nation is an out-of-control train running top speed with an incompetent and suicidal engineer at the throttle. To change metaphors, our country is a packed jumbo jet with an unlicensed pilot at the controls. (While he’s not a real pilot, he did have breakfast with one at one of those local motels a few years ago.)

To be fair, the incompetent “pilot” has had help from Republicans and Democrats, in and out of Congress, including George W. Bush. With that, Republican fanatics just turned me off and went to the fridge for a can of adult refreshment.

While I have been an optimist all my life, believing a sovereign God is in control of our lives and over this world; I am convinced God permits us to hang ourselves. Believing that we will reap what we have sowed and we will reap proportionally, I think, out of various possibilities, we are going to experience the worst-case scenario. Yes, that is positive pessimism.

In no obvious sequence, I see the following taking place.

We are facing almost total rejection of mainline political parties with an infusion of new blood coming to power that may or may not keep their word once they get to Washington. It seems that when politicians arrive in D. C. they turn to the left. Power usually does that. They contract “Potomac fever” and become raving, lying, power-hungry aristocrats as the fever makes them think they really deserve all the praise, perks, and power that are handed over to them. However, even if the soon-to-be elected crowd is very courageous, competent, and committed it is too late, in my opinion, to do much more than delay the dismantling.

The stock market could fall far below 5,000 and gold pass $5,000 an ounce and unemployment pass 25%, producing tent cities or shantytowns across the nation. Soup lines in every city will be as common as political ads in October, straining churches and charity groups to the breaking point.

With fewer Americans working, the state and federal governments will be unable to pay their bills causing the printing of even more money (more inflation) or repudiating debt, including Social Security, Medicare, Military pensions, etc. That would result in Americans feeling abandoned, angry, and alarmed. Their protests could make the storming of the French Bastille look like a schoolroom fuss.

As America comes apart at the seams, I will be shocked if a coup d’état does not occur carried out by retired and presently serving military personnel who have been horrified watching America become a third world nation. When they are convinced that America has been taken over and is being dismantled, it will not be difficult for men to convince themselves that they have a duty to “do something” to save this country. After all, they will justify their action because “We took an oath to defend our country against domestic and foreign enemies.”

Muslim fanatics will take advantage of our problems or may be used as the trigger for these problems by launching a massive attack against our churches, governments, police departments, schools, and any place easily accessible to them. Alternatively, the attack may be low tech such as suicide bombers or mass random shootings since those are not complex and can be easily carried out causing unrest, uncertainty, and unlawfulness throughout every hamlet, town, and city in America.

Our largest, glitziest malls will be turned into ghost malls with only a few retail stores still in business.

We may see astronomical crime rates with child abuse, armed robbery, kidnappings, shootings, extortion, etc., doubling within months, and prisons packed and seething with angry, desperate, and hopeless people ready to explode

Frustrated, fearful people living on the edge will force divorce, abortion, and suicide rates into the stratosphere.

With crime exploding, police forces will be cut to the bone, leaving citizens without any promise of protection, forcing homeowners to defend themselves. .

As funding to cities and counties stops, so will the services as garbage stacks up, school buses stop running, all unnecessary classes eliminated such as all sports, foreign languages, home economics, shop, art, music, etc. Teachers and students will protest to no avail since if no funds are available, no checks can be written. I.O.U.’s will be normal for state and federal workers.

Gangs, KKK, skinheads, and other opportunists may control parts of major cities even into the suburbs. A spark such as the killing of a political demagogue or religious leader could ignite irrational actions resulting in major cities going up in flames. Gangs and mobs (but then, I repeat myself) would then take over neighborhoods and move to the countryside in search of food, fuel, and fun. Blood may run in the streets and neighborhoods as citizens fight back in self-protection.

My view of the immediate future and for decades ahead is one of gloom but long-term it is glory for Christians! However, we must live in the here and now, and Christians would be wise to plan for “hard times” because hard times are coming. During the trials, trouble, and turmoil ahead of us, men will finally realize that toys and things don’t matter and are not in the league with faith, friends, and family.

That’s what I think is really ahead of us. I hope and pray that I am wrong.

The party is ending and the hangover is here.

Copyright 2013, Don Boys, Ph.D.

It was a fantastic year when the stock market boomed and major U.S. companies made huge profits in domestic and foreign markets. New technology totally changed many industries, and financial pundits told us that we were on the edge of a new level of prosperity. Politicians, business leaders, and economists told us that the future was incredibly bright. No, that was not in recent years but in 1929! From May of 1928 to September of 1929, stocks jumped forty percent! In fact, trading in 1929 was more than twice that of 1928.

Newspaper headlines on Oct. 24, 1929 (Black Thursday) screamed, “Wall Street in Panic as Stocks Crash.” President Hoover (not “President Roosevelt” as our newly elected VP declared!) assured the American public that it was only a little correction, but the prosperous became paupers overnight. The best stock on Wall Street was General Motors, selling for 73 and after the crash, it fell to eight!

Men jumped from skyscrapers when their wealth was wiped out in the market. Powerful men were reduced to selling fruit on the streets for pennies. Bread lines were a block long. U.S. unemployment was 25% and about 10,000 banks failed. In addition, our nation did not come out of that depression until the Second World War, twelve long years! Better keep that fact in mind.

It must be kept in mind that even after the stock market crash, political, business, and financial leaders were telling all who would listen that it wasn’t really that bad! The U.S. Secretary of Commerce reported in early 1930 that business was doing well! He said that 1930 would be a “normal” year and those who predicted prolonged depression were “foolish.” Then, on Dec. 6, 1930, when the market had plunged through its 1929 low, unemployment was rising sharply and business and bank failures were setting records, he said in a radio speech, “We have weathered the storm and signs of stability and recovery are already appearing.” He must have been president of the League of the Willfully Blind!

Treasury Secretary Andrew Mellon assured the nation in early 1930, “I see nothing in the present situation that is either menacing or warrants pessimism.” Mellon must have been vice-president of the League.

The New York Times jumped into the parade in its Jan. 24, 1930 issue with headline blaring,
“TRADE RECOVERY NOW COMPLETE—No Stimulants Needed—PROGRESS IN ALL LINES BY EARLY SPRING IS FORECAST.” Many major leaders gave such false assurances with no solid, sensible, or sane reason to believe them. America was being broken, and our leaders were playing politics to keep everyone from panicking.

We are hearing the same kind of assurances today as the world is brought to its knees. (May not be a bad position!) So get ready for a wild ride that may last for years and be far worse than the hot shots in Washington and New York are telling us. Remember that these are the same people who only now are using the word “Recession” while some of us are using the word “Depression.” It may be that in a few weeks everyone will use the word, “Panic.”

Economist Richard Yamarone said recently, “There is no light at the end of the tunnel, and the outlook is pitch black.” With stocks in a free fall, U.S. jobless number is now at 10 million, major banks and corporations going belly-up, it is almost too late to lash yourself to the mast to keep from being washed overboard. Don’t even open your monthly 401-k statement. It may be worth only $401.00!

While pessimism is not my nature, I see a dark cloud on the horizon. First, a major Depression followed by massive inflation. Informed Americans should make plans for some very difficult years ahead. Because life is so uncertain, every thoughtful person should always be prepared for anything. Another terrorist attack is coming with only the date unknown; a major natural catastrophe totally unforeseeable; a major race war touched off by some religious or racial nut; or a total collapse of the economy resulting in no jobs, no money, no gas, no food, and no silver lining. Get ready today for whatever may come tomorrow.

I have written before that we don’t have to know the future to prepare for the future. So prepare today. The most compelling preparation is spiritual. Do you know Christ in forgiveness of sins? Are you in a good church that helps provide support? Take care of those things immediately.

Then head for the store and purchase what you need to stay alive. Humans need, that is absolutely need, air (can’t do much about that), water, food, and shelter. Everyone should maintain a rotating food pantry of non-perishable foods such as dried beans, rice, salt, honey, and canned foods (which don’t require cooking) to name a few to get you thinking. Also, think about essential personal products and include toilet paper, soap, and medicines.

This is a good time to prepare a garden spot if you have any ground to use so you would need garden tools and other supplies as well as non-hybrid seeds. It would be good to plant some fruit trees.

Simply put: For the storm that is approaching, you need God, groceries, gold, guns, and a garden. Forget about living well because those days are gone for a long time, if not forever. Look for this headline: PANIC ON WALL STREET AND MAIN STREET!

And that’s from an optimist!