By now, numerous readers will have seen the popular American YouTube video by Mark Dice in which he bases on a city walkway and provides passers-by a free present. They may choose in between a 10-ounce silver bar or a large Hershey’s sweet bar.
Each taker chooses the candy– the majority of them without any consideration. The only taker who appears to think twice at all soon selects the sweet, as “I don’t have any way to do anything with the silver.” (Behind them is a coin store. Mister Dice provides to take the silver bar inside if she wants, however she’s withdrawn and takes the candy.)
A 10-ounce silver bar is currently valued at about $230, the Hershey’s bar at about $2.
(Editor’s Note: If you have not seen the video, please see below.)
Mister Dice doesn’t comment in the video as to what lesson might be learned from this, however an obvious one would be that Americans (or at least those who live in his house town of San Diego, California) are vulnerable to choose pleasure principle over something of substantially greater, however delayed worth.
If this is his intent, he’s prospered well in his light-hearted, however explanatory video.
Considering that the 1950’s, much of the world has perceived Americans as being on “Easy Street,” and in recent years, the U.S. federal government has actually sustained American complacency through a consciousness of easy money and privilege.
And so, Americans are often viewed by those outside the U.S. as being rather insulated, ruined, naïve, and short-sighted. However, if this holds true, Americans certainly aren’t alone. Similar exists in Europe, Canada, and quite a few other countries that have, over recent years, followed the American socio-economic model.
Problem is, all that easy cash and privilege exists only as long as a source for the “freebies” exists. Unfortunately, the concept that freebies are free is incorrect. Giveaways of any description need to be paid for by someone.
In organization, freebies are often supplied as “loss-leaders” to attract more service. They for that reason end up being a line product on the month-to-month balance sheet, a cost-of-doing-business expenditure. Business wants to make the loss back through sales created by the loss-leader.
But, when federal governments hand out giveaways, no sales will be produced, so the loss will not be recuperated. When federal governments give out giveaways, the expense is paid with tax incomes. And when taxes have actually been raised to the point that even more increases would be challenging without inciting disobedience, governments typically rely on loaning.
But, naturally, borrowing, too, eventually reaches the point that it has actually become so excellent that it can not be repaid. What then?
Invariably, financial collapse is the outcome. But, why should this be so? Well, when the tipping point is reached (as in jurisdictions like the EU and U.S., where more than 50% of the public are net recipients and the other 50% need to pay for both themselves and the other 50%), there’s no reversing. Those who have actually been getting the candy have actually been informed that they’re entitled to it and now they think it. They will not tolerate the suggestion that the freebies must end, even though no further tax can be fairly imposed; no further funds can be obtained. Therefore, in every case, the outcome is systemic collapse, not a progressive lessening.
For thousands of years, governments have actually looked for to calm people with giveaways. In ancient Rome, a dole of grain and complimentary home entertainment (bread and circuses) helped to usher in the decline of the empire. Like all excellent empires, it collapsed under a weight of financial obligation and mismanagement.
Much of the world is currently at this tipping point. Governments continue to promise advantages that they understand will quickly concern an end. If history repeats, they will continue duplicating this promise right up till the day when the candy stops being dished out.
They will then state that nobody might have seen this coming.
Amongst the general public who will be the victims, there will be 3 basic groups. First will be the Takers, those who have been the recipients who relied on the giveaways one of the most. They will be the hardest struck, as not just will they lose the giveaways, they will have neither the abilities nor the imagination to end up being self-reliant over night.
The second group will be the Payers, those whose tax dollars spent for the giveaways. They will be tough hit, as the system in which they live and operate has broken down, although they will fare better than the Takers. They will have the abilities and imagination to reconstruct their lives (having actually previously been efficient enough to spend for themselves and others.)
Third will be the Preparers, those who imagined the inevitability of the collapse of the system. They most certainly will have the skills and creativity to reconstruct their lives, however, in addition, they’ll have the methods with which to rebuild quickly. They will be the extremely couple of who picked the silver bar over the sweet and had the knowledge to keep the silver in a jurisdiction where it was not most likely to be appropriated by a passing away empire.
Much of the world is now running out of sweet. The latest version of Bread and Circuses is reaching its inescapable end.
Replaying the video, we observe Mister Dice using chocolate or silver. Each Taker takes a look at him incredulously, then makes the apparent option, the candy. Each of them provides him a smile. Each is pleased to walk away with the chocolate, however, likely as not, each will have taken in the bar prior to the day is out and the benefit of the freebie will be brief.
After giving out 8 bars, Mister Dice is all out of chocolate and he most likely goes house. He has no candy, however he does have 10 ounces of silver. Perhaps he owns other silver bars too, stored in a much safer jurisdiction.
Each of us has the opportunity to make a choice regarding whether we want to be Takers, Payers, or Preparers. The choice we make may define our future.
Editor’s Note: The U.S. federal government’s bad monetary decisions and huge debt levels will cause another monetary crisis earlier rather than later.
Like a lot of federal governments that enter monetary trouble, we believe American politicians will keep choosing the easy choice … money printing on an enormous scale.
This has remarkable ramifications for your monetary security. These political leaders are playing with fire and inviting a currency disaster.
This is a big reason that we believe everybody ought to own some physical gold and silver. Rare-earth elements are the supreme form of wealth insurance coverage. They have actually maintained wealth through every kind of crisis possible. They will preserve wealth during the next crisis, too.
However, if you want to be genuinely “crisis-proof”, there is more to do …
Many people have no concept what truly takes place when a currency collapses, not to mention how to prepare …
How will you secure your cost savings in case of a currency crisis? This just-released video will reveal you precisely how. Click here to enjoy it now.