No More Direct Taxes
At the time of the founding of America, it was considered a badge of dishonor for the federal government to carry debt forward on its books. Debts were incurred to prosecute wars and were to be extinguished as quickly as possible.
The U.S. Constitution includes the provision for Congress to apportion a direct tax to the states. The Founders created this mechanism so that government debts could quickly be eliminated with each state paying its equal share based on population. There have been five direct taxes in our nation’s history, the last in 1861 and each enacted to extinguish debt.
Today the federal debt grows exponentially with each passing month.
US Debt Eclipses Economy, Reaching $16 Trillion This Week
“At 104 per cent of the nation’s gross domestic product, the debt is now larger than the US economy itself… ‘This is a grim landmark for the United States. Yet the president seems strangely unconcerned’… Each day, the debt grows by roughly $3.5 billion, or about $2 million per minute… The current president has overseen the largest debt explosion in US history.”
It would been considered a form of madness by the Founders for the government to have more debt than annual economic output. But here we are. And there is no way for the states to pay off this debt; the states are all broke too. The obvious conclusion is that present circumstances will lead to default.
Our research leads us to forecast that default will occur over a 15-20 year period through an increase in the rate at which the dollar is allowed to decline to virtual worthlessness. On the way from here to there the entire American middle class will disappear.
One generation from today the United States will be at the economic level of the former Soviet Union after its collapse, after which rebuilding can begin. This is excellent news for today’s younger generation, not so good for everyone else.
It’s time to start producing wealth at rates of return that can compound a portion of your net worth and put you far ahead of default. As always, Prism Solutions offers you a FREE, no-obligation consultation to answer your questions and see if we can help you achieve your wealth development goals. Get in touch and let’s talk.
And May All Your Investments Be Profitable…
David Taylor and Gordon Philips, Directors
Prism Solutions, LLC
‘Better Investing Through Science’
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