Don’t worry, there will soon be a regular Universal Basic Income (UBI) check going to every legal resident and many longtime undocumented will get status and along with it the UBI…but NOT for the reason you think.

The common narrative is that we need a UBI because technology and globalization are putting more and more people out of work and that such a trend will accelerate along with technological advancement. That is true, but long before that factor becomes an issue and even if the technological promises of abundance don’t come true, there is another reason UBI will come into being sooner than later: our monetary system is failing.

Instead of going into a long summary here about how currency is created, I will just ask readers to accept one premise: If a small country’s currency can become worthless (google history of currency collapses) why couldn’t the same thing happen to the dollar? Short answer: It can (and is doing so right before our eyes). It may take a while longer, but the ability of the US government to print unlimited amounts of dollars is coming to an end. The US will likely not default on its debt, but instead simply print enough money to keep up with bond payments. All governments will print ever-increasing amounts of their currency to give away to banks and businesses to keep the economy from suffering a liquidity freeze. This year alone the US government will print about $10 Trillion and even more and more in later years. At the same time, interest rates will be held near zero because to raise rates would instantly bankrupt both business and the US Treasury. All currencies worldwide are caught in this trap. Debt to GDP ratios are skyrocketing. Eventually, the dollar will lose its exorbitant privilege of being the world’s reserve currency and there will be some sort of monetary system reset probably accompanied by individual, corporate and governmental debt forgiveness. Starting now and through such a transition, the only way to maintain civil order will be for governments to institute UBI. I predict that this will come sooner than expected and that the coronavirus pandemic will cause a regular UBI program to start within two years. This UBI and growing government deficits will seem to work while a deflationary spiral takes hold; but historically hyperinflation follows a deflationary spiral eventually leading to a currency collapse.

Farther in the future, on the other side of a currency collapse, the reserve currency will most like revert to gold. A good way for the little guy to prepare would be to limit expenses to the point where he can have money left over with which to purchase gold. Here is one way for the little guy to hold gold. Another way is to order it through large online dealers. A third way is to use publically traded trust accounts (ok for IRAs, etc).

I hate the ideology of the republican party and lost faith in the democratic party when Obama refused to hang* any bankers after the 2008 crisis. Since then I have refused to let any bank or credit union use my savings as a reserve. While the system is dying, gold will have some ups and downs like the stock market, but the dollar’s value in terms of gold will consistently go down. It will consistently take more and more dollars to purchase the same amount of gold until, as it approaches its intrinsic value of zero, the dollar as it is today will be replaced along with all fiat currencies as part of a monetary reset. Buy gold not as a financial speculation, but instead as insurance against a currency collapse.

*I’m using “hang” figuratively. Obama should have had some bank execs imprisoned and let BOA, Wells Fargo, and other zombie banks die. Also, the remaining banks should have had executive compensation extremely curtailed and generally come under more stringent regulation.

SGI Buddhist, Loves Irish and Latin American Literature, History buff, knows a great deal about Medicare

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