If the Federal Government will spend nearly $400,000 on studying rabbits getting Swedish massages and $850,000 on training mountain lions to ride treadmills, there is no question as to how government will make a society poorer (link to this story below).
When government has nothing to worry about, with no real authority to be accountable to, workers can spend and give themselves raises because there are no real checks and balances to protect tax payers.
There is a massive government bubble in the works, and Brexit was simply a sign of the times of what the rest of the world will ultimately deal with.
In 1952, for every government employee, there were 23 civilians that the one employee served in the U.S. Today, for every government employee there is, there are only 13 citizens. Government is booming, and Brexit-type situations will begin to erupt here in the States. Quite frankly, with the rise of the likes of our next potential president, Donald Trump, we could say it's already happening.
Here, we have the total U.S. population since 1952, now around 325 million.
Here is a chart of the growth of "all employees of government." Well, excluding military, CIA, and NSA, but we'll go with it anyways. This sits at around 22 million.
Now, look at the growth of government workers compared to the population with the charts overlapping. What you will notice is a massive outpacing of government workers to U.S. citizens.
Mike Maloney is someone who has been a great educator of mine with his regular published work, and in his words, government can't give us anything that is a net positive for society because to pay for the services, it either comes from taxes or inflation tax. When government does something that should cost $1, it ends up costing $2 and only produces $1 worth of value. So therefore, everything that government does comes at a net loss for society.
In his Part 2 review of the Brexit Movie, he goes over these charts above and analyzes the fundamental problems.
Brexit was a sign of the economic breakdown of our present-day economy. What we saw in the event was a panic in the equities markets and a flight to safe-haven assets, with gold having a triple-digit move on that news alone. If you believe, like I do, that the economic bubble is only accelerating, you can expect actions like this to shake up markets until there really is a major financial reset.
All I can say is be prepared financially.
Chief Editor, CrushTheStreet.com
If you'd like to read about the 20 Worst Ways the Government Wasted Your Tax Dollars, view this link here.