By: Douglas J Utberg

In the current environment of bailouts, government entitlements and economic uncertainty there is a perpetual supply of politicians who will claim to be the ‘savior’ of the middle class.  In a strange twist of irony, the way in which most elected officials purport to ‘save’ the country is by taking money away from some people through taxes, borrowing and inflationary money printing so that they can give it to another group of people that just happen to be likely to support them in re-election.

This trend of elected officials using government resources to ‘buy votes’ for re-election has created a problem that is beyond most people’s comprehension.  Multiple decades of an unsustainable spending trajectory has placed the government and economy in position for an unprecedented collapse.  The way that this collapse will precipitate is by the actions that the government will need to take in order to satisfy their spending promises.

The current national debt stands in excess of $14 Trillion dollars, with the government budget deficit running well over $1 Trillion dollars per year into the foreseeable future.  The ultimate consequence of these terminal budget deficits and spending obligations is the fact that the government cannot possibly tax or borrow enough to satisfy its spending promises.  Ultimately, this means that the only way the US government can satisfy its promises is by creating new money and devaluing the dollar.

The expanded impact of this monetary inflation will be a destruction in the value of savings, debt and fixed-income payments such as pensions, annuities, and government assistance.  As people begin to experience a destruction in the ‘real’ value of their assistance payments, it will result in many being ‘pushed off the edge’ of economic viability.

As this phenomenon unfolds, the same government that created the problem will rush to ‘solve’ the situation.  It is most likely that the resources diverted to address the problems of people who are economically destitute will not leave any remaining resources to help those in the middle class who have seen their wealth collapse.

In the end, it will ultimately hold true that “I am my only hope” for financial success.  The government is hurtling toward the edge of an economic cliff and will pull many people along with it into the chasm.  Those who are astute will come to realize that they are the last stop for the well being of their family.  Once this realization has been made, the next step is to take action so that the financial future of you and your family are preserved.  Once the collapse begins to unfold, many will find that it is too late to take the action that is necessary to attain prosperity.