Discrimination means to differentiate, which could have bad connotations, such as to treat individuals differently in a bad way based on race or sex or nationality or creed or religion or just about anything that comes to mind.  For example, blacks have been discriminated against in employment, voting rights, freedom, and many other rights simply based on their color.

However, discrimination has a good side to the coin if it is discerning differences to determine the best of a group of individuals.  For example, we discriminate when we compare Albert Einstein to other scientists because Einstein was different and thus we differentiate his abilities from others in a good form of being prejudiced.  Einstein should be separated from his contemporaries as being the best.

It is interesting to note that most people who claim that they never discriminate against Native Americans, Japanese, blacks, Jewish, Irish, or whatever group is in the “hot box,” are really discriminating because they have made race an issue.  Somebody who truly doesn’t discriminate doesn’t even notice the difference.  A man who says that he likes the black race just showed his true allegiance to his race because he didn’t say that he liked all races no matter what.  The soldier who goes to war with his brothers in arms from all different races and religions and sees no distinction is the true professional who does not discriminate.

So, is there a problem with the “Black Lives Matter” group?  They didn’t say, “All Lives Matter.”  Of course, black lives matter, but so do the lives of red, yellow, tan, brown, and white people.  Some say that blacks have been mistreated for so many generations that they should have the right to discriminate against others.  Well, let’s let the Native Americans have that right first.  And how about allowing the Jews to discriminate against Arabs?  Where does it stop?  We have to say that all lives matter to avoid any continuation of discrimination through “getting even” or revenge motivation.

The discrimination against blacks in the south roots itself deeply in the soil of slavery.  I watched many of these whites spew out their hatred, which was very similar to the hatred of the Jewish people by the Germans.  If you are down and out, you will look for somebody to make yourself feel or look better.  The poor whites in the south didn’t have much in their pockets, but they could always pick on a poor black person to make themselves better than somebody else.

In order to get past the terrible history of murdering blacks and Jews, we need to study our past to make certain that it does not reappear.  Rather than tearing down Civil War statues, it would be much more intelligent to examine the history of that war to prevent it from happening again.  It would be more important to learn that General Robert E. Lee was not in favor of slavery, but, rather instead, joined the Confederacy because he sided with his state, Virginia, over the union.  And when you study the history of General Stonewall Jackson, you learn that he opposed slavery and, in fact, taught blacks in his Sunday School classes.  Jackson was another Confederate leader who fought with Virginia rather than against her.  For you see, history is extremely important to ensure that we do not make the same mistakes.  The mistake made during the Civil War was in not declaring the war was to free slaves and nothing else.  State’s rights should never have been an issue.  In fact, if slavery had been the only issue for the war, Generals Lee and Jackson would have joined the Union side, and the war would have lasted for less than a year.  They were that good!

But emotions pour out when we discuss these issues and mad idiots like Hitler can take over crowds who feed on this adrenaline rush.  Tearing down statues usually is only a start.  Burning the history books and then other books is an intermediary step.  Then it is time to start rounding up the “bad guys and gals,” whoever that might be.  Hitler chose the Jews, but the next totalitarian leader may choose to imprison all the middle and upper class.  It would be like trying to predict the weather on a date next year.  Who knows who will be discriminated against by the totalitarian regime?

And I guess that is my point.  Extremists can discriminate against a selected group.  And then that group can get back at the world and discriminate against another selected group.  It is much like the father who abuses the son, and then the son abuses the grandson.  The discrimination perpetuates itself unless we stop and examine the history behind these extreme movements and learn from them so they don’t happen again.

Infinity vs. Eternity

Infinity and eternity are considered to be synonyms by many, but they have different meanings.  Infinity is defined as being without end or boundless like our space-time fabric, while eternity is defined as that which transcends time becoming timeless reality.

Let’s examine our universe.  I believe that space-time is boundless, stretching to its maximum expansion and then collapsing back to its minimum compression.  This constant expansion and contraction is boundless as both space and time are infinite.  Thus, our universe is a perpetual time machine, going from a Big Bang to a Big Crunch and then a Big Bang all over again.

But our universe is not eternal because time is a fundamental part of its matrix.  Eternity dispenses with time so there is no past, present, or future.  Eternal existence is without reference to calendars or clocks.  Eternity is a timeless world.

Einstein explained that there is no absolute simultaneity of events.  An event should appear to happen at the same time to different observers, but this is not the case.  An observer on a speeding train may observe an explosion before somebody who is standing along the rail.  Neither observer can claim to be correct as to when the bomb went off.  This is simply the strangeness of special relativity.

Thus, some philosophers have referenced special relativity as why time is not linear or even real.  If absolute simultaneity does not exist, how could we ever say that an event is in the present?  There is no absolute present in special relativity.

But our understanding of eternity may help scientists reconcile quantum mechanics and general relativity.  Some theories of quantum gravity indicate this world does not have time on its side.  In this strange world, time may not play a role.  In effect, quantum mechanics may intersect with quantum gravity completely outside of the space-time fabric.

In the quantum world, a particle can be in two places at the same time; so this may be a “matterless reality,” which would be, at a minimum, have a completely new set of rules for its physics.  And considering eternal possibilities, it might be God’s world.

So when I talk about infinite life in the universe, I am talking about the stardust that formed us and prior to that has formed billions of other forms of matter and will continue to form matter in the future as the space-time fabric expands and contracts forever.

However when I talk about eternal life, I am referring to God’s timeless and matterless world which exists without time and space.  So how do we even know it exists?  Well, we know the quantum world exists, but we do not know much about it.  We know that the laws of physics that we use do not apply in this world.

And there is an even more potent reason: there cannot be more infinities than one because one infinity would limit the other.  In effect, our closed infinite universe must be inside an eternal world because it cannot be within another infinite world.  In other words, whatever is outside our infinite universe is where creation occurred since one of the laws of physics is that matter and energy can neither be created nor destroyed in this universe.  Thus, creation of our time-space fabric universe occurred in the eternal world of God.

When we pray to live forever, we need to be careful what we pray for.  We may just get what we requested.  Living forever in the world of infinity is what we are doomed to do.  Our recycling universe takes us through time, probably forwards and backwards forever.  I get dizzy just thinking about it.  That would not be my first choice.

However, reaching the eternal world of God will be a much more difficult journey.  My guess is that it will be completely foreign to us and we will have to let God manage that trip for us if we are to have any chance at all.




Did you ever spend hours thinking about why… why you exist?  why the universe exists?  why you die?  why you have four fingers and a thumb?  why you have to eat and drink? why you then have to eliminate the waste?  why you are so weak?  and why you do stupid things… every day?

Well, I’ve certainly thought about all those things and more.  And I simply answer why with another question: why not?  We have nothing else important to do during our tenure on earth.  It is not like I am in the middle of creating a new universe.  I am basically a nobody doing next to nothing with a short time in which to accomplish next to nothing.

I remember when I was in the work force, I prepared magnificent resumes describing all my major accomplishments.  I was so proud of myself then, but when I examine these resumes today, I am embarrassed to admit that the resume is a brief history of my life, which was quite meaningless and impotent.  The job titles that sounded impressive were really insignificant positions where I accomplished very little.

In short, our lives are sometimes only impressive to ourselves.  Professionals, including attorneys like myself, and doctors, and accountants give ourselves distinguished awards. And we make lots of money and gather fame and accolades along the way, but when you reach the end of your life, what have you really accomplished?  And more importantly, why have you done the things you have done?  Are you proud of how you made your wealth or are you ashamed of your poor and sometimes criminal decisions that earned your fame, glory, and gold?

Why didn’t you do the right thing?  Why did you abuse your free will?  What was so important about being somebody or owning a million-dollar house?  Was it worth feeling guilty in your last few years?  And what if you carry that guilty feeling into the afterlife?  What would it be like feeling guilty forever?  Why didn’t I stop when I was living comfortably?  Why did I have to always strive for making more and more money?

Why wasn’t I happy with one loving spouse?  Why did I have affairs with so many others like I was searching for something to make me young again?  Why did I harm so many people without looking back on the damage that I caused?

Why did I inflict mental harm on so many people, making them feel like they were worthless when, in effect, I was the one with no value?  Why did I feel like I was so much better than everybody else, when, in effect, they were better than me?

And why did I write this?  Well, so I will read it and understand that I am a worthless wretch.  And so others will read this and maybe ask these same questions of themselves.  Pride is the worst sin of all, and I was guilty, guilty, guilty.

So why waste what is left of your life feeling guilty?  Dump the guilt and take on a new life of doing the right thing and doing good for other people.  Of course, you will continue to have bad and depressing days, but your good days should outnumber your bad.  And if they don’t, then ask, “Why?”


Space-Time Fabric

Let’s assume that the space-time fabric is situated within our entire closed universe and matter is scattered throughout like small insects trapped on a giant spider web.  And let’s also assume that the space-time fabric along with the matter is in constant motion, either accelerating because of gravity since they are the same thing (Einstein’s principle of equivalence), or decelerating because of entropy, or shrinking because of dark energy, which quite possibly may be found in the quantum world.

So, finally let’s assume that dark energy is scattered about everywhere in the universe, fighting to overcome the original expansion from the Big Bang and matter and dark matter’s gravitational attraction in an effort to pull everything in back on itself to finally collapse into a Big Crunch.  And mathematics tells us that dark energy has about three times as much force as dark matter and all visible matter, so shrinking may well be the strongest force in the universe.

From our perspective, the matter probably would appear to be expanding at increasing speeds.  Yet, if the fabric were alternating back and forth between expanding and contracting, we might not be able to recognize the difference between expansion and contraction from our perspective.  It might look exactly the same to us on the planet earth.

The matter in the universe would warp the space-time fabric and perhaps, vice-versa, but we would not detect these variations from our perspective.  So, what can we surmise from our perspective?

Let’s again assume that the Big Bang was the start of expansion of the space-time fabric when all matter was very close together and should have slowed down time.  As the space-time fabric expanded, it would have also expanded the distance between mass in the universe, thus causing time to speed up.  Let’s assume that we would not detect this time difference, just as we would not detect it in a spaceship traveling toward Mars.

So depending on our position and speed, time can appear to move faster or slower to us relative to others in a different part of space-time.  The phenomenon is called “gravitational time dilation.”  In a nutshell, it just means time moves slower as gravity increases.

A time reversal may simply be caused when the expansion away from masses becomes a contraction back to an increase in gravity from the narrowing of the distance between the matter in the universe.  Time would initially move faster as everything expanded, but would move slower as everything contracted.

Again, we could not detect this time reversal or the increase or decrease in time.  However, we could see the effect of time going backwards by examining ancient galaxies, whose light passed by us billions of years ago.  When we can actually see those galaxies which existed billions of years ago, it is only because we are in a time reversal headed back toward the Big Bang, which will be more aptly named the “Big Crunch” for our future.  Otherwise, we could not see the sight of these old galaxies, which would have zipped by at the speed of light never to be seen again.  Just count your lucky stars that you cannot see the Big Bang… yet.

You Can Trick Yourself into Believing Anything

We spend most of our time being distracted by video games, television, cell phones, internet, our children, our spouses, our family, our neighbors, meals, work… the list is a long one.  And these distractions keep us from thinking about death and what may come after death.  Even if we think about death, we can trick ourselves into believing that death ends everything for us.

Of course, death could be the end to us, but that is not likely because our universe is a huge recycling machine where matter and energy are neither created nor destroyed.  Since we do not want to think about potential consequences for things that we did during our lives, we can fool ourselves into thinking that we will just die and there will be no consequences for bad choices.  You can trick yourself into believing anything.

However, it is more likely than not that we will pay for the decisions we made during life.  Why?  Well, let’s start with the law of conservation of mass and energy, which sparks two other significant questions:  (1) how can there be a God if matter and energy is not created?  And (2) how can we die if matter and energy cannot be destroyed?

Well, logically the three answers are:  (1) God created the universe outside our universe, so that the law of conservation does not apply outside our closed universe, (2) our bodies and mind can transform into different matter and energy without being destroyed, so it is very likely that our thoughts will continue functioning in some manner after death, and (3)  life would be quite absurd if there were no consequences for choices (existentialism).

We spend the majority of our time on earth thinking about everyday matters like how to squeeze in a lunch between two meetings or how to get the milk on the way home from work or what television shows to watch tonight.  And only rarely do we think about our inevitable death or what may occur in the afterlife, so we are like a boxer who doesn’t train and prepare for a fight and runs out of gas in the first round.

Why is preparation so important?  The mind can be exercised just like muscles in our body, and it must be in tip-top shape in order to deal with the dangerous unknown and chaos that may be waiting on the other side of our living world.  A weak mind will have no chance to make it through a difficult maze.

For example if you are asked to join forces with something or somebody on the other side who promises you immortality and anything else that you wish, this may be the wrong alliance to form.  There are so many possibilities of what may be on the other side that it could even be unique to each person, depending on their individual frailties and faults.  You could even be your own worst enemy as your mind may fashion its own trap to ensnare your soul.

You will have to be prepared for anything and everything.  If you train your mind to think like Jesus, you will have your best chance in the afterlife.  Now, you could trick yourself into believing that there is no Jesus or God or punishment for your sins; but why would you because there is no consequence for believing in these things and being wrong?  However, there is a disastrous consequence for not believing in these things and being wrong.

If you examine these consequences logically, you will bet on Jesus and God without hesitation because you have nothing to lose by placing that bet.  But many get so distracted by everyday events that they do not think about death enough to make the smart bet.  It is much easier to live life without worrying about consequences from God or anything else.  Just do what you want, enjoy the distractions, and put consequences out of your mind.

We Are in the Middle of the Universe

When you examine our universe from the smallest scale, which is the Planck length (1.6×10−35 meters) to the largest, which is the observable universe (91 billion light years across), we are in the middle.  And when I saw “we,” I am talking about our cells, or in effect, life as we know it.

It might seem strange, but the living cells inside a human body are smack dab in the middle between the smallest and largest things we know.  Whether that’s luck of the draw or a requirement for life or some other requirement for balancing the universe, we don’t know.  But we do know that generally things are positioned in the universe with design and reason and less by random selection, except for things found in the quantum world.

So, let’s speculate on why life is found in the center of the universe.  It may be the “goldilocks” zone for life to exist.  In other words, it may be the area that is just right for life to survive.  We know that the earth is in a “goldilocks” zone for protecting us from radiation and other hazards within our galaxy.  Our solar system situated about three quarters of the way outside the center of the Milky Way is in a fairly safe and habitable part of the galaxy.  And our earth is in a perfect location within our solar system for life to exist.  Perhaps, the same can be said about the location of our cells within the universe.

The center of the universe might be the safest zone as it is in the middle of two extremes.  Extremes, as a general rule, do not bode well for a fragile life form.  It might be the safest location for life forms.  Life, which would be susceptible to death from extreme environments, must have a safe nest for birth, growth, and development.  Cells and molecules appear to have that nest in a perfect location in the middle of the universe.

Now as the space-time fabric expands, the center of the universe does not change.  Life stays in between Planck length and the observable universe, no matter how much the universe expands.  It would be like placing a line in the middle of a balloon and then blowing up the balloon, watching the line remain in the center as the balloon increased in size.  The same could be said about the universe if it contracted; life would remain in the center if the space-time fabric decreased in size.  If we were on that line, we couldn’t tell if the universe were expanding or contracting.  Only observers from outside our universe could tell which direction it was going.

And whether our universe is contracting or expanding may not matter much for a majority of the time.  However, it may be important if we form a Big Crunch at the end of the contraction period.  That may be a point when life can no longer survive until we go from the Big Crunch to the Big Bang again.  This seems to suggest that the universe is a perpetual motion machine, which makes sense in a closed universe.

Speculation is permitted in a situation when our senses cannot provide us the information we need to answer life’s questions.  Because being in the center of the universe may block us from seeing the whole picture.

The Blame Game

It appears to be human nature to blame somebody or something else for our transgressions.  It is rare when somebody steps up to the plate and admits that they made a bad decision and then accept the blame for what happened as a result of that choice.  More likely than not, individuals will refuse to accept any fault for what they have done.

And these people who do not have the intestinal fortitude to admit their guilt or fault will lie, cheat, steal, or do whatever it takes to ensure that somebody or something else is blamed for their mistakes.  We all make mistakes, but only those with moral courage will admit that mistakes were made and then accept consequences for those poor choices.

I used to wonder why younger generations were so stubborn in refusing to accept guilt, while the WWII and Korean generations were just the opposite.  The older generations would not only admit they made mistakes, but would work hard to ensure that it did not happen again.  If you watch these younger generations, they will rarely admit that they made a mistake.  I believe it is because they make so many mistakes that they cannot afford to admit to the truckload of errors they have made.  As I said, the older generations made mistakes too, but there were fewer of them and they learned from their mistakes so they were less likely to make them again.  The younger generations make mistakes, do not admit them, and then continue to make mistakes, never learning from these errors.

As an example, I have noticed that younger generations working in businesses make mistakes on a daily basis, but for the most part, these errors go unnoticed.  Modern society is much more accepting of mistakes.  The supervisors are also younger, and they don’t want to admit they are managing somebody who is making mistakes.  So if there are no consequences, then there is no reason for these younger generations to stop making these mistakes.  But if you confront them about the error, they will never ever admit that a mistake was made.  They will lie, rather than face the truth.

Thus, individuals in the modern world blame somebody else, their background, society, or any number of things that might have influenced them, but never themselves.  A drug user should not be blamed for being addicted to drugs.  Blame it on his dysfunctional family or blame it on his disease.  It is not his fault.  He cannot help it because he is addicted.  However, I wonder who made the decision to start taking drugs?  Isn’t that the same person who doesn’t want to accept the blame?

So, what is the big deal?  Why should we even care?  Well, it’s a simple matter of our world being overrun by individuals who can do anything they want without any blame.  Is this the type of world you want to live in?  Well, it is what the world will be like by 2030.  By that time, there will be nothing left of morality, decency, and even civilization.  There will be no order or consequences, so everybody can do anything they want to anybody they want.  It will be a free-for-all with those with the least moral values surviving in a dog-eat-dog world.  A totalitarian government will step in to take over at this point.  Freedom will be dead!

Time Reversal

We know very little about deep oceans and the center of our planet.  Clearly, we know even less about our solar system and even far less about our galaxy.  Guess how insignificantly little we know about our universe.  So, how will we ever know what is going on within our universe?  It seems that only our imagination saddled with logic has a chance to succeed in solving this mystery.

For a starter, it is possible that everything in our universe is interconnected.  Einstein’s space-time fabric encases the stars, planets, and other mass, including black matter.  This fabric connects solar systems and galaxies to form our universe.

But the next step requires a giant leap of our imagination.  What could make this space-time universe perpetual?  After the Big Bang, wouldn’t entropy cause the expansion to slow down?  Yet, we know that galaxies are moving away from each other at increasing speeds.  If we do not use our imagination, we can only visualize our universe expanding forever until solar systems end up in a Deep Freeze off somewhere by themselves.  But this would describe an open universe that expands forever with no boundaries, which does not seem likely.

What does appear to be more probable than not is that the galaxies are shrinking away from each other at an increasing rate.  Deflation could also cause a “red-shift” effect as the galaxies were shrinking away from each other.  But how did our space-time fabric go from expanding to contracting?  Well, if there were a significant force, perhaps dark energy, that could cause the space-time fabric to reverse direction, then our universe would be a perpetual motion machine, moving back and forth in time.  Remember, I said this required a giant leap of our imagination.  The space-time fabric would be similar to a balloon that inflated and then deflated.

It all depends on your perspective.  From where we sit, time reversal sounds impossible.  But from outside our closed universe, this movement would appear to be a simple expansion and contraction of the universe just like lungs that first fill up with oxygen and then deflate as the oxygen exits the lungs.  Einstein introduced time as the fourth dimension.  So, the dimension of time could easily move up and down as it expands and contracts.  But like I said, from our perspective, it would appear to be going forward in time and then reverse going back to the past.

Even though this sounds a little bit extraordinary, it may be the best theory we can come up without more evidence.  Here’s the bottom line:  there is no other explanation for being able to see an ancient galaxy, no longer sending out light, that was formed about 670 million years after the Big Bang.  The light from the ancient galaxy would have traveled at the speed of light and thus would have passed us by billions of years ago, never to be seen again.  The light from this ancient galaxy which died billions of years ago would have zipped past our field of vision, since expansion, as a general rule, would have propelled us at less than the speed of light.  In other words, how could we possibly see this light through the Hubble telescope unless we had reversed time and were headed back toward that original light?  When we finally see the Big Bang, it may not be a good thing for us.

Of course this sounds like science fiction, but when you consider time as being part of a fabric, it is logical to conclude that the fabric can expand and contract.  Time reversal may be nothing more than moving from expansion to contraction.  And dark energy, which currently is only a mathematical creation, could be a likely candidate to cause this reversal.

Again this is only speculation, but it is possible that dark energy is intertwined in the space-time fabric, so that it can twist one direction until entropy takes over and then it turns around like a rubber band to unwind in the other direction.  And dark energy could be powerful enough to keep this fabric twisting back and forth forever, first expanding and then contracting.  Even though there is little evidence to support this hypothesis, it is logically creative.

You might wonder why we don’t also reverse our aging or go backwards in time from the 21st century to the 20th century.  The answer is because the time reversal occurred billions of years ago.  We probably have been deflating the space-time fabric in a past-future direction for eons.  Basically, you would detect no difference between aging in the present-future or the past-future.

So, why would we ever be able to see the light from ancient galaxies as we moved back in time?  I don’t have a perfect answer, but I believe that we may be able to see light from ancient galaxies and even the Big Bang itself since that light is encased in the time-fabric.  In other words, as the space-time fabric collapses, our universe will be miniaturized so that we will be able to see the light from current galaxies, ancient galaxies, and even the Big Bang, which then may become the Big Crunch.

This theory of expansion and contraction of the time-space fabric would also comport with this being a closed universe, which is most likely the case.  It is not probable that our universe with its mass interconnected by a space-time fabric has no boundary.  Interestingly enough, quantum theory may assist us at this point.  Even though atoms may not appear to have well defined borders, there is an end point where other atoms come together as building blocks for matter.  As strange as the quantum world is, there still probably are boundaries.  And it may well be that the boundaries between the quantum world and the relativity world explain why we cannot reconcile these two worlds.

Even in living things, cells also have membranes at their outer perimeter that contain everything within.  Separations within our universe and between universes, if others exist, may be quite normal.

Our universe is very likely closed, so why would we limit our imagination to our universe just expanding from a Big Bang?  Contraction also must be considered, which may lead to a perpetual Big Bang-Big Crunch theory.  In effect, we could bang and crunch forever.

Anthropocentric God

Do you consider man to be the most important species in the universe?  Why?  Of the billions of star systems in our galaxy and the billions of galaxies in our universe, do you consider us to be the most dominant life form in the universe simply because we believe we are on earth?  I have found other animals on our planet that might well have better qualities than us.  And what if we compared Homo sapiens to life on other planets in the universe?  And we are fairly certain that other life exist.  We just haven’t found it yet.  And if they have found us, then they are certainly more advanced than we are.  Wouldn’t the most important life form be the most advanced?

I suppose it was natural for our species to allow its countenance to be the face of God.  Since we are the most important life in the universe, God must look like us.  However, our egos are perhaps a little inflated.  In reality, we represent a tiny spec of time on earth and are an even smaller amount of matter within the universe.  We are not that important in the scheme of things.

God is the Creator of our universe and other universes if they exist.  We really don’t know how far God’s creation reaches out.  So, we are a bit presumptuous to think that God looks like us or for that matter, even resembles anything in our existence.  We only know that the Creator exists, but nothing else.  God could be the essence of creation and be no more contained than space itself.  We just do not know and will not until we travel into the afterlife.  And there is no guarantee that we will initially view God after we die.  There may be a process that we will have to undergo in order to reach that final destination.  And some may never reach it.

It seems logical that the universe could be a perpetual motion machine, and we may be elements that are recycled as part of that process.  We know that our bodies decay and the atoms are reused.  We know that stars die and the elements are created from its destruction.  It is most likely that we live in a closed universe that constantly has systems that are dying and then regenerating.  It is possible that our universe is actually a living organism that recycles itself.  If there are other universes, they may play a role in the death and regeneration of our universe.  For example, if there is an anti-matter universe that collides with our universe, it could destroy us.

Again, we have no way of knowing what is going on within and outside our universe.  The best we can do is have faith in God, our Creator, and attempt to unify with God in advance of our deaths, so we will be ready for whatever lies ahead.  If nothing happens and your atoms simply merge into something new, then I will not be thinking and will not have to worry about the afterlife.  But I know that I am thinking now and that to just stop thinking would be rather absurd, knowing that there is very little in life that just ends.  Like I said, there appears to be a strong tendency toward recycling in our universe.

It does not seem likely that we would just stop thinking upon death.  But then, we do have a problem if we continue thinking.  What will we be thinking if we do not have our senses to distract us?  It might be good to think about that before you die.


Where Is Our Economy Headed?

Tim Morgan, a highly respected economist, has completed an analysis of trends of debt and gross domestic product (GDP).  This analysis is as important as a study by an astronomer on when the next asteroid may strike earth, creating a mass extinction.

Let’s start with Morgan’s trend in growth of America’s debt.  If we examine an average annual growth in debt, this simply totals up the growth numbers and divides that by the number of years.  But economists refer to the growth of debt in terms that differ from the average growth.  It’s almost an inherent number that can’t be really explained to a non-economist.  However, we see only small variations, like from 5.1% to 5.2%, even after significant economic collapses.

This is measured against the GDP at 3.2%.  One of the controversial aspects of GDP is how to consider the spending of borrowed money.  If you were examining your own finances, you probably would not count money that you borrowed as income because it would be a debt that you had to repay.  It would be more of a liability than an asset, especially if it had a high interest rate or were borrowed from an organized crime element.

The U.S. economy currently has a 5.2% compound growth of debt and a 1.8% compound growth of productivity or growth of actual output.  A 5.2% debt rate doubles in 13.84 years.  And it would take 40 years for our productivity to double at 1.8%.  So if we look ahead, we can see that within another 13 years, the amount of debt in the economy will double again.  The economy’s productivity won’t double again for another 40 years at this rate.  And this tells us that there may be a collapse of the economy just like a balloon that is too full of air.  The huge, excessive amount of debt will blow up our economy and will have to be reduced either by massive deflation of prices for goods or by hyperinflation when the value of money is sharply reduced.

Which will it be high deflation or hyperinflation?  More than likely, it will be deflation.  There is no way to significantly reduce the value of money through hyperinflation without printing trillions of dollars, which does not appear to be in the best interest of America or the banking system.   Our system seems to want to borrow money into existence, not print it into existence.  And bankers do not want to devalue the debt that is owed them by printing more money.

Let’s think of our economy as 10% assets and 90% debt.  If the debts were declared forfeited because of inability to pay, that would leave America with only 10% of its wealth.  And even worse if you invested heavily in bonds and there were a major default, you might lose much of what you considered to be an asset in your portfolio.

This whole idea behind conjuring wealth magically out of thin stocks and bonds is destined to fail.  And considering wealth as increasing by going further into debt is also a pipe dream that will eventually disappear.

So what is the best course to steer to avoid the hazards ahead?  First, pay off all your debts.  Second, if we assume there will be high deflation of prices, then cash should be king.  The best approach would be to balance cash with specie, preferably silver since it will be lower in value and easier to use in a bartering system.