Economic Judgment Day

Posted on July 28, 2017 by Robert Ringer


Talk about economic judgment day that intensified during Obama’s eight years of trying to collapse the U.S. economy is starting to surface once again.  The failure to completely repeal the People Control Act (misleadingly labeled the Affordable Care Act by the Dirty Dems) once again underscored the reality that a significant number of Republicans are, at heart, big-spending liberals.  (That does not change the fact that they are also corrupt cowards, but that’s another story for another day.)

Of course, the financial newsletter writers have been predicting a total collapse of the U.S. economy for decades, and they’ve made a ton of money in the process.  But what, exactly, would have to happen to cause the U.S. economy to disintegrate?

One path to economic judgment day is for the government to simply allow market forces to prevail, which, because of decades of government meddling in the economy, would likely bring about a full-scale deflationary depression.  Though the let-the-good-times-roll crowd doesn’t want to hear about it, the truth is that a deflationary economic depression would actually be a good thing for America long term, because it would cleanse the economy of artificially high wages, profligate spending, and malinvestment.

In a deflationary scenario, most people, to be sure, would be much worse off, but a small percentage of folks would actually come out ahead.  That’s because a deflationary depression is a time when, in effect, property is returned to its rightful owners.

The second possibility for the arrival of economic judgment day is runaway inflation, which I have been predicting for more than thirty years.  This would almost certainly lead to social chaos and anarchy, more likely than not followed by an authoritarian central government.  The reason runaway inflation tends to result in authoritarianism is because the natives become restless when they discover that government’s paper money is worthless.

However, I must admit that I sometimes feel like Wile E. Coyote on this subject, because every time I believe the government is trapped by economic reality, I once again hear that infamous “Beep! Beep!” in my brain.

With its high-speed printing presses, its ability to borrow virtually unlimited sums of money, and a monopoly on the use of force (which gives it the power to take money from citizens at will), government always seems to escape the consequences of its actions and lives to see another day.  But unless someone figures out how to make gold out of paper money real soon, the ugly ending to this fairy tale has already been written in stone.

Though it’s anathema to socialists, the truth is that it’s American entrepreneurs who have held up the U.S. economy all these years by doing what they do best:  create wealth.  It is they, not government, who create jobs and increase living standards.

But if Demopublicans in Washington continue to press the welfare pedal to the floor (e.g., as we have seen watching the healthcare chaos, not only is the Republican wing of the party committed to not cutting Medicaid, most of its members actually want to increase it), an inflationary ending is virtually assured.

If that occurs, it will not be pretty, because the continued onslaught of valueless paper money disrupts the market and causes confusion, apprehension, and, eventually, panic.  People are afraid to enter into long‑term contracts, because they have no idea what money will be worth in the future.

Businessmen decrease investments in new plants and equipment, because they do not know if their real profits will be worth the risk.  The latter causes shortages, which leads to even higher prices.

If inflation is not eventually curtailed, a final collapse of the economy begins when people start to guess at what future prices will be.  This sets off a chain reaction in which sellers increase prices even faster than the increase in the money supply.

At that point, government faces its last chance to avoid a total collapse of the economy.  The late, great economist Henry Hazlitt put it succinctly when he said, “Every inflation must eventually be ended by government or it must ‘self‑destruct.’”  This self‑destruction is exactly what has happened in nation after nation throughout history.

The case most of us are familiar with is Germany’s runaway inflation in 1923.  Consider these figures:  Between 1914 and 1923, the German government issued an additional 92.8 quintillion (92,800,000,000,000,000,000) paper marks, a 245 billionfold increase in the money supply.  Prices, in turn, rose 1.38 trillionfold.  Interest rates rose as high as 10,000 percent per annum on some debt instruments.

As you would guess, people eventually refused to accept paper money in exchange for goods and services.  The economy collapsed and chaos and crime ensued.  And waiting in the wings, preparing hysterical answers for hysterical people, was Adolf Hitler, who understood all too well that only an authoritarian police state could restore order.

I guess a rational person would have his South Pacific island picked out by now and be getting his papers in order in anticipation of having to depart on short notice.  But for determined optimists, there is another alternative:  Stay put, dig in your heels, and do your part to help spread the truth — about inflation, about entitlements, about the corrupt and avaricious nature of government, and about the sanctity of liberty.

In other words, do what you can to explain to others why it’s in everyone’s best interest to give liberty a higher priority that all other objectives, as well as what needs to be done to restore the United States to a nation guided by our original Constitution.

One note of caution:  Don’t think in terms of overnight victory.  It won’t happen.  In fact, this is a war where there’s no such thing as total victory.  The story of the human race is told in the ebb and flow of liberty and tyranny, which is why the fight for freedom is never ending.

Just as communists are idealistic dreamers to believe they can change human nature and convince people to willingly give up their freedom and their property, so, too, is it a mistake for defenders of liberty to believe they can convince those who worship at the altar of big government to embrace freedom and self-sufficiency.

It’s entirely possible that Trump, if he can develop the sanity to stop alienating those who tenaciously support him, can pull some rabbits out of the hat and delay the inevitable for a long period of time.  But just know that even if economic judgment day is a bit late in arriving, it is on the way.  The reality is that $200 trillion+ in debt (including entitlement commitments) can never be paid off.  Guaranteed.

That said, you have only two choices:  fight or flight.  I’ve already made my choice.  What about you?

Robert Ringer

Robert Ringer is an American icon whose unique insights into life have helped millions of readers worldwide. He is also the author of two New York Times #1 bestselling books, both of which have been listed by The New York Times among the 15 best-selling motivational books of all time.

34 responses to “Economic Judgment Day”

  1. Noah says:

    I'm all for flight, but there's nowhere left on the planet to run to. We are, as Reagan said, man's last best hope on earth. We in the USA are the least far down the path to ruin of any of the civilized countries of the world.
    There are no 'new worlds' to be discovered where our constitution could be followed from a new 'day one'. No new island to be discovered by a modern day Columbus. No unclaimed land to start a new country. I guess that means we have no choice but to stand and fight, or die trying.

    • Jon says:

      Unfortunately, when there are now more folks receiving net incomes from the government than paying taxes to the government, it means we've reached "critical mass." That means the process is no longer reversible. The parasites will never give up until their host (that would be us) dies. Fighting never works. Freedom, Liberty, whatever you want to call it is a product and must be built (and then maintained). It can't be built until the present system has collapsed (because of critical mass). We can try to build this product called Freedom elsewhere, but we can't reverse the process already in-play in the USA. There are "islands of less coercion" in other parts of the world where such potential exists. La Estancia de Cafayate in Argentina is potentially one of those locations.

      • Jim Hallett says:

        Glad to see you are a Doug Casey fan, Jon! I have considered his retreat in NW Argentina (along with Chile, Uruguay and even the resurgent Colombia), since the Southern Hemisphere has none of the bad actors of the Northern Hemisphere (US, Western Europe, Israel & the Middle East, Russia, China, North Korea), though we are all connected globally, so eventually ALL will be sucked in. There are pockets of libertarian thought (the Free State Movement in NH, e.g.), or phyles as Doug would call them, but overall, the masses are sliding ever more quickly into collectivism. I think a collapse, painful as it will be for many, is the only way, freedom can be recreated. The criminal politicians – "progressive" liars to the core – have guaranteed that with their actions the past 100 or so years. I still try to educate where I can, but I also have a Plan B, since I refuse to have all my assets at the beck and call of the thieves in DC!!

        • Rocketman says:

          I'm currently taking care of my invalid mother but as soon as she passes I'm moving to Paraguay. They have a small weak government, are more pro-gun that just about any other South American country and growing economically like crazy. They have a young workforce and once you have permanent residency there you can invest in different farming co-op's that pay as much as 18% per year on your investment. The are energy independent with the largest hydro-electric damn in South America that they share with Brazil and are sitting on top of a huge aquifer of fresh water.
          The United States has passed the tipping point and no matter what Trump does or what he says the absolute best that he can do is just not going to be enough to save the country from decades of worthless sell out politicians that only want to line their own pockets and not give a damn about the middle class..

    • Scott theczech says:

      I'm not so sure of that anymore Noah. There are several other countries with systems that are much more logical, reasonable and supportive of individual liberty. A few examples come to mind: Columbia, yes Columbia, Belize, and Ecuador. Nevertheless, the kind of economic problems which plague our country afflict the others as well. Fight or flight: I'm still considering my options.

  2. Kerry says:

    Too many say “Republicans,” killed health care repeal. Not true. A Handful, small percentage of Republicans were guilty. They only have a surplus of three Senators. Three simple no votes can kill any bill. Most Republicans are as disgusted with the mess as the rest of us. I say post ads of the 3 clowns who call themselves Republicans and a photo of Schumer and Warren celebrating in every city where people are suffering from the Obamacare nightmare. Keep running the ads and then let us see if Republicans can get a few more to help the odds in their favor.

    • Robert Ringer RJR says:

      I agree with your thoughts completely.

      • Andy Andy says:

        I'm with you, Kerry and RJR. It is up to the freedom loving/freedom seeking Americans to keep constant pressure on both Democrats and Republicans and to communicate what Kerry says above. The MSM and the political establishment are perfectly satisfied with the status quo. We must inflame the passions of Americans who are fed up with what's going on today. Look at the success the Tea Party enjoyed before being swallowed up and co-opted by the GOP.

      • Phil says:

        As cynical as I am, what happened with the Obamacare "repeal" attempts turns even my stomach. The corruption and cowardice of the GOP truly boggles the mind. Good Lord, at least even Maxine Waters does what she says she will do, i.e., push us towards banana republic socialism. In that sense, she exhibits far more integrity and "honor" when it comes to politics than, say, John McCain. I fear that the grip of the sewer is so deep that it is going to win in the long run. But here in Texas there are places that liberals still fear to tread, and the possibility of buying into 20 or so acres and running a goat farm is fairly appealing. That, or another country. But there are problems everywhere. As per Viktor Frankl, most of the battle for happiness and survival can be won via attitude and intentionality.

  3. Jay says:

    Idealistic Dreamers? or Ideologically Possessed?
    Take a look.

    • Jay – I watched the video you linked. Wow. "Possessed" is the right word. It's people like this woman who ruin free speech for everyone. She needed to be physically silenced and removed. I'm in awe at the patience of the security officers.

    • TugCapt says:

      Sounds like Kamala Harris, another possessed nut job

    • Jim Hallett says:

      Which media outlet or university is this lunatic, unhinged woman representing? It sounds like the daily fare from CNN or most libtard universities. She could be Maxine Water's "soulmate'! Look at the shenanigans at Evergreen College in Olympia, WA and she would fit right in. My alma mater, U of Michigan, offered Play-Doh and safe rooms on Nov. 9th for students to escape from the "trauma" of Trump's election. It is a complete zombie world and "possessed" is about the most accurate description of it.

    • GUEST says:

      Was not aware humongus could cause such a reaction. Is there a list of words not to say such as sugar that could cause such a apoplectic reaction?
      That seems rather weird! Big time delusional tweakers or delirium tremens for sure. Such hysteria over a trifle, makes me wonder how someone could get into a psychotic rsge over trivial words. Truly cray.

  4. RealitySeeker says:

    Good and well written article.

    One point almost every economist misses is that food is money; it's a very simple yet difficult pecuniary reality for people of advanced civilization to grasp, but "real money" is edible. And all the other mediums of exchange (including gold) return to their real utilitarian value when the SHTF. By SHTF I don't mean a Great Depression, I mean something worse: a total collapse like the collapse that ended the Bronze Age and plunged the great palace economies and trade routes of an amazing culture into a collapse so great that it ended an era…

    We, too, live in an advanced civilization. Obviously the most advanced in history, yet lacking the greatest thinkers. And in my diligent study of what finally and totally ends an era is the collapse of food production, i.e., real money. So, this means for the American Empire that keeping the farm tractors running is far more important than keeping the "printing presses" running. And if The Donald can keep up the production of bread, then the American Empire shall survive. And if Donald can increase the circus, then he'll go down as one of the great ones. The American Empire just might become a totalitarian empire, but that's another story. It also might split ( like The Roman Empire) again, another story. Or, what could end us is a breakdown in our Just-in-time-system….

    • Jim Hallett says:

      I've heard it said, that a complete and utter riot and collapse is only about 2-3 days away when masses of people cannot feed themselves (no food available). All the niceties would disappear when people are starving, and the immoral politicians will all be in the bunker eating steak & caviar (under the Denver airport, perhaps?), so they won't rescue the idiot dunderheads that keep relying on govt. to take care of them.

      • RealitySeeker says:

        Food production powered the massive building of the Egyptian pyramids, and the ancients actually had an amazing system of growing, processing and distributing food. Egyptologists have recently discovered just how centralized was food production. Top-down orders were given to the common people on when to plant, how to grow and when to harvest — and where to store the harvest.. Food was a primary means of how the masses we're controlled by the elite. Food was how they paid taxes.

        It's a little different today. People underestimate the real value of food. It's the last thing they'd
        say that it's money. People pay there taxes in dollars. People believe that dead men's pictures on green paper is money, which proves my point that the masses are you in some respects more dimwitted than people alive over four-thousand years ago. But one fact remains: no matter what you believe money is or is not, food still powers mankind. And without it, just as you pointed out, all hell breaks loose…

      • Phil says:

        No doubt that the "entitled" classes would riot after just 2-3 days, though I think that much of middle America would exercise some discipline. Of course, those on the public payroll, well, who knows…they may not become violent themselves, but would likely organize and foster political violence in the form of massive taxation of their neighbors, "eminent domain" seizures, etc.

        • RealitySeeker says:

          In some of the larger US cities by day number three of any kind of nationwide lights-out senario the Walmart shelves would be stripped bare and Amazon would be dead. Shortly thereafter hunger would set in. The crackle of gunfire would be heard on and off both day and night. Running skirmishes and back shooting would quickly become the new reality. And law enforcement?

          Without a proper communication system and without massive national guard support they'd quickly retreat into whatever secure positions available. Many cops would just disperse and hole-up with friends and family totally abandoning there sworn duities. In Chicago gangs already out number law enforcement by a margin of 10 to 1… and when people start to go hungry they'll start to go hunting — in packs and as lone wolves. The greatest danger — believe it or not — would actually be hungry police who had kids to feed. Some would use their weapons and training to obtain the necessities of life by intimation and force…. By day number seven of lights out all public services in cities like Chicago would be unavailable — including hospitals. No garbage collection. No fire department. No police. And worst of all the water would stop flowing out of the tap. Death by dehydration would ensue for tens of thousands, maybe hundreds of thousands.

          Where does all the chaos end? That all depends mainly on restoration the food supply and a few other crucial factors, e.g., water works, sanatation, fuel, electrical power and communacation. So long as a tipping point isn't reached, then so called law and order can be restored and civilization preserved. What is the tipping point and when is the tipping point reached for the American Empire? The point of no return is when the state and federal government can't supply the military with food, fuel and communications. Take any of those three necessary elements away and kiss civilization goodbye….

          There's more, of course, but food, fuel and information underpin what some call the "rule of law" but what I call "the rule of force and modern pseudo-civilization". Which is why when the lights go out and say out nationwide for more than two weeks it's game over. The American Empire would fall so much faster than the Roman Empire because of its dependency on technologies. Write that down….

          • RealitySeeker says:

            * there ..their duties… I have a new smart phone that's so smart it actually thinks it can check my grammar and edit my posts. I'm sure one day that'll be true, but not just yet.

  5. smucko says:

    RJR, I'm sure that your choice was to do both, and I congratulate you for having the talent and resolve to pull that off. Your efforts to educate the American People have been outstanding and appreciated by those who have been exposed to your books and essays during the last 30 years.
    Unfortunately, as you state above, your voice-in-the -wilderness has been lost amid the vast corruption promoted mostly by the government and its Useful Idiots. While I agree that we should join the fight by adding our voice in trying to persuade others, you didn't mention today how we should be learning how to "play defense" to protect our families in the coming collapse. I know that there are plenty of sellers out there hawking their stuff, but your prior books laid out perfectly what people should do and the morals reasons for doing so. It may be time to dust off that advice to a new audience, especially the part that life was better on Walton's Mountain than in the city during the Great Depression. My belief is that while we are re-defining marriage, gender, racism, and other moral issues, we may want to look at re-defining our concept of "American workers living iniside the fence of an American Compound" from being located in a foreign country to being located in your small town surrounded by like-minded people. The Barbarians are inside the country and they want your life, so the question is "How do you keep them out of your gate?".

    • Jim Hallett says:

      You are right that living in a more rural area, far away from the libtard havens of urban areas, is a better way to stave off the collapse, particularly if one is prepared with foodstuffs, water, and living off the grid. The major cities will quickly become hellholes when the SHTF.

  6. IHeartDagney says:

    Fight. Start with the Convention of the States to propose an amendment to the Constitution imposing term limits on the swamp rats who are there for themselves, not the country. Once the amendment is in place and the turn-over of Congress and Senate is running towards liberty-loving patriots, we can then get the FairTax passed. Hope it happens in my lifetime.

  7. Jim Hallett says:

    Robert, I appreciated this wise counsel, right out of Henry Hazlitt, Murray Rothbard, or Ludwig von Mises. Since the Bernie "free lunch" crowd is much larger than the anarcho-libertarian crowd, I am not sure how much penetration any education can have, though I still do my part whenever and wherever. The collapse scenario is much more likely, but so painful for so many, and especially considering that Amerika, like most places in the world has regressed into a dependency culture, so self-reliance, independence, and mental strength are real casualties. I remember reading your "Restoring the American Dream" (ironically on the steps of the Capitol in DC in 1982, while waiting for the National Symphony to begin their Fourth of July performance, as I was living in Alexandria, VA at the time), and this took me back to that work. Persevere we must, but I am also doing a Plan B to "hedge my bet".

    • Pitch says:

      Jim, I too was literally stunned and rudely awakened by Robert’s best seller “Restoring the American Dream.” My wife gave me one of the very first copies in 1979 and this book has been one of the most powerful real world influences of my entire life. I remember well the forward by William Simon and his words of wisdom; “If They Only Understood the Problem!” And at the time I owned a very successful business on the most traveled intersection in town and had an extremely high volume of people pass through each day. So, I set out to do my part to help educate the uninformed masses and ordered 100’s of copies to give away in my waiting room and I was literally shocked at how few customers would even look at the book let alone take a free copy. The average response was: American Dream, what’s that? And remember this was in 1980. Fast forward to 2017 and if I were to try this again I’m sure there would be boycotts and threats of violence or worse. Of course, today in the Twilight Years of our great experiment in self reliance and freedom there is no way to penetrate the safe spaces and layers of ignorance our Department of (Indoctrination) Education has instilled in the malleable, pliable and gullible minds of America’s youth. So, I suggest that everyone that does understand the problem live each day as if it were their last, make their very own spot to call Heaven on earth and always try and do something that they really love and are passionate about and like Robert, make a good living doing so….and to perhaps put this all in perspective, it is estimated that our small Milky Way Galaxy has 100 to 400 billion stars and 40 billion Earth-sized planets orbiting in the habitable zones of Sun-like stars and red dwarf stars just within the Milky Way galaxy. One can easily imagine that this same TYPE discussion and scenario has and will be played out over and over ad infinitum. And as a final note for all you real fans here is a link I happened upon from an interview with Robert reference the American Dream with Reason Magazine circa “1980.” Robert might even enjoy reminiscing?

      • Rick G says:

        Another excellent masterpiece of Robert Ringer is "How You Can Find Happiness During the Collapse of Western Civilization". This book, as far as I know, only came out in hardback, not paperback. It was a real eye opener for me. This book had a greater impact on me than "Restoring the American Dream". One passage I remember is his writing that the biggest threat to this country in the next century would be terrorism. Very prophetic indeed! I don't think it is still in print. But it should be! Last time I looked, they were selling it on Amazon. This should be required reading for every Ringer fan!

      • Phil says:

        "Make their very own spot to call Heaven on earth and always try and do something that they really love and are passionate about and like Robert, make a good living doing so"….Love it! Great thoughts, all the way through!

  8. RealitySeeker says:

    *** typos galore, because of this mobile spell checker…

  9. Richard Lee Van Der says:

    Mine is a long story but… I ended up moving from the States to the Philippines 20 years ago. I live very well on $2,000 a month. In the States I could never live at my present level on that. So, moving to another country IS OR CAN BE A WAY. Since 05 I've spent my time writing books, so maybe I will become a millionaire yet! But I doubt it! I am older than 80 now. In any case, if a person is not too embedded in his American life-style, living in a less expensive country is one way.

    • Phil says:

      One trick is to study foreign languages – I have become fairly fluent in Chinese, and speak passable Spanish. If nothing else, it is a fascinating, inexpensive pasttime. Congrats on living an interesting life! The road less taken….

  10. Paul B. says:

    As I recall, it was Vladimir Lenin (the Bolshevik who was the first leader of the Soviet Union) who said that "to destroy Capitalism, debauch the currency". We have largely done that to ourselves, haven't we? Mr. Ringer is correct, the day of reckoning is coming, and it may be closer than we think!

  11. Rock roach says:

    Nice to see Rhino John McCain,help the Dems out a little bit by voting against the most non American parts of Obamacare.(the mini repeal or whatever it was called) to keep Americans and businesses paying penalties and keep the middle class down.

  12. Pitch says:

    Time to lighten up from all the doom and gloom. If you need a good laugh and have not seen this meme, you'll be glad you did. The vast amount of creativity in America is boundless and our President is doing all within his power to unleash this creativity and nudge it in the positive direction of America First!