The US National Debt is 9.6 trillion dollars. The US Population equals 304 million people. Each citizen’s share of the national debt is $31,641. The interest on the national debt is $430 billion (about $1400 for every man woman and child.) True indebtedness of US government adding unfunded obligations into the future — approaches $50 trillion.
This is what we are leaving for our children, our grandchildren. No nation in the history of mankind has ever been as heavily in debt as ours, and our leaders have numerous foreign aid programs where they give away money.
And of course there is a woeful lack of understanding. There are people today who say, “We need the Fed because someone has to manage the currency.” Ladies and Gentlemen, that is one of the greatest fallacies of all. If the currency is a commodity like gold or silver, it does not have to be managed. The free marketplace will manage it. Money should be a commodity — valuable to all people, and there’s no management needed. People say to me, if you get rid of the Fed what are you going to replace it with? I say, if you’ve got cancer do you wanna replace it with pneumonia and two broken legs? No you don’t.
Economists continually try and sell the public the idea that recessions or depressions are a natural part of what they call the “business cycle”. This timeline below will prove that is simply not the case. Recessions and depressions only occur because the Central Bankers manipulate the money supply, to ensure more and more is in their hands and less and less is in the hands of the people.
Central Bankers developed out of the ancient money changers and it is with these people we pick up the story.
48 B.C. Julius Caesar took back from the money changers the power to coin money and then minted coins for the benefit of all. With this new, plentiful supply of money, he established many massive construction projects and built great public works. By making money plentiful, Caesar won the love of the common people, but the money changers hated him for it and this is why Caesar was assassinated. Immediately after his assassination came the demise of plentiful money in Rome, taxes increased, as did corruption.
Eventually the Roman money supply was reduced by 90 per cent, which resulted in the common people losing their lands and homes.
30 A.D. Jesus Christ in the last year of his life uses physical force to throw the money changers out of the temple. This was the only time during the the life of his ministry in which he used physical force against anyone.
A few weeks ago, I warned in my website that the Dow would dive below 7,000 at the earliest by end of December 2008 and at the latest by the end of the first quarter 2009.
Any responsible central banker would want to control a downturn, preferably by a gradual slide of the market as opposed to a sharp hard landing.
But events and data have revealed that these financial handlers are not responsible and are hard core gamblers in their very soul.
Their mindset is that of the ultimate gambler and nothing in this world will change their behavior not even the thought that millions will starve and die and that national economies will be shattered. They are totally unconcerned as the devastating consequences of their actions. And anyone still having illusions about their altruistic aims will be disappointed.
The stock market and the derivative market is their ultimate casino. Fix this in your mind in the months to come. Then you will understand and agree with me and my conclusions in the next few paragraphs.
While common criminals use guns and masks to steal money, our leaders use the printing press–printing ever more dollars out of thin air.
It is interesting that more modern dictionaries only use half of the definition of inflation. The Oxford American Dictionary of 1986 defines inflation as:
“a general increase of prices and fall in the purchasing value of money.”
But that is only half the story of inflation. According to Websters New Twentieth Century Unabridged Dictionary of the English Language of 1957, inflation is defined as:
“an increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and a rise in prices.”
Like other happenings–we must not look at just the symptoms, but rather the underlying cause. The result of inflation is always rising prices, but the cause is printing more money.`
Put simply, “Helicopter Ben” Bernanke is not just an inflationist, he is a thief.
Even though the Federal Reserve is now the biggest single participant in the financial system, the myth of a “free market” still lingers on. It’s mind boggling. The Fed has expanded its balance sheet by $2 trillion, guaranteed $8.3 trillion of dodgy mortgage-backed paper, provided a backstop for bank deposits, money markets, commercial paper, and created 8 separate lending facilities to ensure that underwater financial institutions can still appear to be solvent. The whole system is a state subsidized operation buoyed on a taxpayer-provided flotation device which bears no resemblance to an invisible hand. More astonishing, is the massive power grab engineered by the Fed which has taken place without the slightest protest from 535 shell-shocked congressmen and senators. Elected officials have either kept their finger in the air to see which way the political wind is blowing or timidly caved in to Treasury’s every multi-billion dollar demand. It’s flagrant blackmail and everyone knows it. Congressional oversight is an oxymoron.
Anyone who has followed the financial crisis from its origins knows that the Fed’s bloody fingerprints are all over the crime scene. Still, that hasn’t stopped well-meaning liberal economists (Krugman, Stiglitz, Reich) from supporting Bernanke’s increasingly unorthodox attempts to flood the financial system with liquidity (“quantitative easing”) and invoke whatever radical strategy pops into his head. In fact, many of the experts believe that Bernanke should do even more given the sheer size of the meltdown. There’s growing support for a gigantic stimulus package ($700 billion) which will focus on road construction, infrastructure, state aid, extensions to unemployment benefits and green technologies. The Obama camp hopes that government programs and deficit spending will make up for the huge losses in aggregate demand which threaten to drag prices down even further in a self-reinforcing deflationary cycle. Even so, its natural to wonder at the wisdom of giving even more power to the very people who created the mess to begin with and who seem more interested in proving their depression-fighting theories than throwing a lifeline to struggling homeowners, consumers or auto workers. Maybe its time to try something different.
Economists continually try and sell the public the idea that recessions or depressions are a natural part of what they call the “business cycle”. This timeline below will prove that is simply not the case. Recessions and depressions only occur because the Central Bankers manipulate the money supply, to ensure more and more is in their hands and less and less is in the hands of the people.
Some good will come from the current meltdown of the U.S. economy if it results in the replacement of the Federal Reserve System (privately owned). The government would then print money as the Constitution requires. President Woodrow Wilson went to his grave stating that he had betrayed his country in 1913 for his part in the establishment of the Federal Reserve which is controlled by a consortium of international bankers.
There are precedents for opposing the Fed. In 1837, President Andrew Jackson eliminated a similar private money system and returned to government printing. President Lincoln financed the Civil War by printing greenbacks. This could well have caused his assassination.
Last week, I posted ten points (that were by no means exhaustive) for Congressional action immediately in the wake of the financial crisis now gripping our country. At that time, the Democratic leadership of Congress was prepared to adjourn the current legislative Session to campaign, without taking any action at all to put policies in place that protect U.S. taxpayers and the global community that has accepted U.S. financial leadership. Those ten points are as follows:
