I.O.U.S.A - Addison Wiggin [130]
In short, I ’ ll pick a number, $ 400 an ounce. If it goes much above $ 400 an ounce, you ’ re printing too much money, so soak some of that excess money you spilt and mop it up. If it goes well below $ 400 for a period of time, you know you ’ re not creating enough credit for the needs of the economy, so you print a little more. You let the markets, the economy tell you what to do. You don ’ t try to second - guess what ’ s needed like setting interest rates and hoping you targeted it right. Markets will tell you.
Q: Is it important for the American people to recognize what this debt means to our economy in the future?
Steve Forbes: What ’ s important for the American people to realize is that the government has, with a sleight of hand, given us a lot of obligations that we don ’ t know we have. We know about the national debt — that ’ s a number. We know we have obligations on Social Security and in health care that are fi ve, seven, eight times what the national debt is, and there ’ s no way the current system can deal with it. It ’ s like you think you have a house, you may have bought a house, say, for $ 200,000. What they didn ’ t tell you is that you ’ ve got a million - dollar mortgage on that thing. That ’ s what the crisis is. So when people realize we ’ ve got a crisis, there are positive ways to deal with it and turn the tables on the big spenders and the politicians. That ’ s what we ’ ve got to do.
Q: Do you sometimes feel like you ’ re a contrarian going against the public? Do you feel that the public debate is starting to line up with you?
Steve Forbes: My role now is agitator, stirring the pot, trying to make things happen, and there are going to be times when you go against the grain. Ronald Reagan could not get elected president in 1968 when he fi rst ran, could not get elected in 1976, but he stuck to it, and in 1980, with the same basic principles, he got in and achieved great things. So rather than see yourself as a c18.indd 259
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Interviews
contrarian or whatever you want to call yourself, people should see themselves as seekers of the truth or as people who are trying to do things based on basic principles. And sometimes you may fi nd a hostile environment and sometimes you may fi nd you ’ ve got a lot of missionary work to do, but you have to do it. That ’ s what America ’ s all about.
Q: As a proponent of the American people getting the truth, if you could pick one truth that they should learn about money, monetary policy, debt, gold, what would it be?
Steve Forbes: I would want people to realize that the money that the politicians spend is your money. It comes out of your pocket one way or the other. They take your money and they pay the tab and you ’ re supposed to be grateful. Don ’ t get caught up in the exact number; just remember it ’ s your money. When politicians spend, they get it from you. And if they say they ’ re going to give you a free lunch, just remember, they ’ re using your credit card, your money. You ’ re eventually going to be getting the bill.
Q: And once the American people have that knowledge and it has become second nature to them, if you will, what would be the right action for them to take?
Steve Forbes: The American people, as a start, should say, “ Who are my representatives? Who is my state representative, state senator, congressperson, U.S. senator, governor? What are they doing and why are they doing it? ” Challenge leaders in primaries, even if they ’ re not doing the job right. Go online, write a letter to the editor, be active. It only takes a few minutes each month. By golly, that ’ s how you get results.
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Additional Resources
There are many great resources on the Web if you ’ re interested in learning more about the nation ’ s economy and securing your family ’ s place within it. Here are a few suggestions for where to begin
• Peter G. Peterson Foundation: www.pgpf.org
• Agora Financial, LLC: www.agorafi nancial.com
• The Concord Coalition: