The nation is
facing many pressing problems , now culminating simultaneously.
But irresponsible incumbents within government are ignoring the voters and our many pressing problems as they grow in number and severity.
One major problem is a dishonest fiat-funny-money-system (
Currently, at this instant, the total federal debt is over $15 Trillion (as of late 2011), consisting of:
Altogether, the total current U.S. debt (nation-wide) is about
trillion (in 2008 dollars), which has never been worse ever, including
as a percentage of GDP ($13.86 Trillion in year 2007; significantly less today
due to economic decline).
On top of that, taxes and fuel costs are not
included in the CPI (Consumer Price Index) calculations, despite federal taxes
as high as
31% for some people.
A postage stamp in year 1950 was 3 cents; in
year 2008, it costs 42 cents (1,400% inflation = 4.74% per year for 58
A gallon of 90 Octane full-service gasoline cost
25 cents in 1950; today it costs $3.84 (1,536% inflation = 4.91% per year for
58 consecutive years).
A house in 1959 cost $14,100; today's median
home price is $213,000 (1,511% inflation = 4.88% per year for 58 consecutive
A dental crown in year 1990 cost $200; today it
costs $1,100 (550% inflation = 11.3% per year for 18 consecutive years).
An ice cream cone in year 1950 cost 5 cents;
today it costs $2.50 (5,000% inflation = 7.1% per year for 58 consecutive
Monthly government Medicare insurance premiums
paid by seniors was $5.30 in 1970; its now $96.40 (1,819% inflation = 11.34%
per year for 28 consecutive years; up 70% in the past 5 years);
Several generations ago a person worked 1.4
months per year to pay for government; now the average person works 5 months
per year to pay taxes;
In the past, one wage-earner families lived well
and built savings with minimal debt, many paying off their home and college,
and educating children without loans. How about today?
Based on that, what do
you really think the real inflation rate is ?
There are a number of abuses and economic conditions that have never been worse ever and/or since the 1930s and 1940s.
The total federal debt over $15 Trillion National Debt per-capita (about $47.6K per-person in 2011 U.S. dollars) has never been larger in size, and per-person.
As of DEC-2010, the $14 Trillion federal National Debt per-capita was $45,161, which is 2.02 times larger than the previous record-high (which was $21,348 in year 1945 in 2010 dollars, after World War II).
As of DEC-2010, the $14 Trillion federal National Debt per-capita was $45,161, which is 8.23 times larger than the it was near the end of the Great Depression (which was $5,481 in year 1941 in 2010 dollars).
After 1976 (or about) is when many things started to unravel.
Now, with a total of over $15 Trillion of total federal debt (as of DEC-2011), and a GDP of less than $15 Trillion (as of year 2011), the total federal debt is greater than the nation's GDP!
The fiscal outlook is not good.
And the timing for all this massive debt could not be worse, with 78 billion baby boomers that will start drawing from Social Security and Medicare.
The aging of American is a factor too.
So, the total current (this day) federal debt is now about $15+ Trillion, and growing ever larger to nightmare proportions (as does the size and intrusiveness of federal government).
The interest alone on the $15+ Trillion National Debt is over $1 billion per day, and the National Debt is growing by about $6 billion per day!
The interest alone could exceed $43 trillion (in 2005 dollars), if we stopped borrowing and started paying $1.05 billion per day (which would take 153 years, provided interest rates did not go any higher than 4.5%).
And, there is another ever-present, incessant, insidious scheme at work too: Inflation
This is over-looked by many that do not understand how it hurts most, but benefits a few.
Our fiat-funny-money monetary system especially hurts savers and those on fixed incomes, who find the value of their dollars steadily being eroded by the Federal Reserve's (a quasi-government controlled / privately owned bank system) irresponsible, intentional, non-stop printing presses.
Year-to-year inflation has been rising:
However, the federal government changed the way it measures inflation in 1983 and 1998.
Remember the double-digit inflation of the late 1970s and early 1980s ?
Based on the pre-1983 measurement method, inflation today is really 15.6% !
Consider the following:
What ever it is, it is too high, and it is likely to get worse.
Already, inflation has been positive for 58 consecutive years:
Incessant inflation, year after year, for 58 consecutive years, is exponential inflation.
For example, see what $100.00 shrinks to for the current (as of AUG-2008) 5.37% inflation, after N years:
On top of that, taxes and fuel costs are not
included in the CPI (Consumer Price Index) calculations, despite federal taxes
as high as
31% for some people.
A postage stamp in year 1950 was 3 cents; in year 2008, it costs 42 cents (1,400% inflation = 4.74% per year for 58 consecutive years).
A gallon of 90 Octane full-service gasoline cost 25 cents in 1950; today it costs $3.84 (1,536% inflation = 4.91% per year for 58 consecutive years).
A house in 1959 cost $14,100; today's median home price is $213,000 (1,511% inflation = 4.88% per year for 58 consecutive years).
A dental crown in year 1990 cost $200; today it costs $1,100 (550% inflation = 11.3% per year for 18 consecutive years).
An ice cream cone in year 1950 cost 5 cents; today it costs $2.50 (5,000% inflation = 7.1% per year for 58 consecutive years);
Monthly government Medicare insurance premiums paid by seniors was $5.30 in 1970; its now $96.40 (1,819% inflation = 11.34% per year for 28 consecutive years; up 70% in the past 5 years);
Several generations ago a person worked 1.4 months per year to pay for government; now the average person works 5 months per year to pay taxes;
In the past, one wage-earner families lived well and built savings with minimal debt, many paying off their home and college, and educating children without loans. How about today?
Based on that, what do
you really think the real inflation rate is ?
The value of the money erodes year after year, which
is why the
Dollar is falling like a rock. There are also many reasons why a Great Depression has not occurred again
since after World War II: If the Federal Reserve was so wonderful, why did the Great Depression of 1929
follow 16 years later?
The inflation is compounded exponentially (like the interest on debt).
Eventually, you have what we have today, where a U.S. Dollar from year 1950 is now worth less than 11 cents.
Also, notice the GDP (Gross Domestic Product) in the following graph.
Do you remember people telling us that GDP has been growing, and that we can't be in recession without negative GDP growth?
GDP in nominal (current dollars) has stagnated (and probably fallen), but only recently.
But look at the down-turn of the GDP in 2005 Dollars (blue diamonds; near top of graph).
And look at the down-turn of the GDP in 1950 Dollars (green diamonds; near bottom of graph).
GDP, measured in BOTH 2005 and 1950 Dollars, has been FALLING sharply since year 2006 (see below) !
That is, inflation masks the down-turn, until it is viewed relative to previous Dollar values (as shown below):
Note (above) that the dip in GDP is the largest dip since year 1900, and possibly the largest dip ever.
Which period (below) looks more stable (A or B)?
Some assert that elimination of the Gold Standard and switching to the fiat-money-system stabilized the economy.
It is quite possible that we would have had fewer and less severe recessions since 1913 if we had not abandoned the Gold Standard.
And, while many think the Federal Reserve solved everything, did it ?
Are things much more stable now?
We certainly have more inflation now (since 1913).
For example, the M3 Money Supply grew from $135 billion in 1950 to $10.154 trillion in 2005, representing a increase by a factor or 75.2 !
But, the nation did NOT become 75.2 times wealthier in 55 years.
The excuse is often used that the Gold Standard caused or contributed the Great Depression of 1929.
While it may have contributed, and return to a Gold Standard is not recommended, there were many other contributing factors for periods of economic instability (such as wars, mismanagement of banking systems, lack of banking laws, transparency, and regulations, lack of Stock-Market laws and regulations, unscrupulous speculation, and major changes in government policies). The mismanagement of the monetary system was a major contributing factor; not the Gold Standard, as often alleged. Again, there were many causes, but the Federal Reserve clearly had no idea what it was doing, and as of today, that has not changed. After all, no one can tell us where the money will come from to pay merely the interest on over $54 Trillion of nation-wide debt, much less the money to reduce the principal of $54 Trillion of nation-wide debt in order to keep it from growing ever larger, when that money does not yet exist.
panic of 1785; caused by post American Revolutionary War problems;
speculation; currency confusion and mismanagement of banking and currency
system; over-expansion and debts, competition in the
manufacturing sector from Great Britain, lack of significant interstate trade; the British refused
to conclude a commercial treaty; the panic among business and propertied
groups led to the demand for a stronger federal government;
panic of 1792; caused by banking
mismanagement and speculation; the panic of 1792 arose from speculative
activity following the adoption of the Federal Constitution, the founding
of the First Bank of the United States (BUS), and the emergence of
securities markets for bank shares and other government securities in New
York City; almost immediately after its establishment in 1791, the
BUS over-extended notes and discounts, and then sharply reversed course; speculators holding bank's shares quickly sold their holdings, which had
risen markedly over previous months, creating the nation's first true
securities market panic;
panic of 1819; caused by post War of 1812 problems;
panic of 1836; caused by banking and currency mismanagement; excessive
panic of 1837; caused by banking and currency mismanagement; excessive
money-printing; speculation and inflation; a
year depression resulted;
panic of 1857; caused by a downturn in agricultural
exports brought on by the end of the Crimean War in Europe and
reduced U.S. exports, the failure of the Ohio Life Insurance and Trust
Co., panic selling, over-speculation in railroads
and real estate, and
American Civil War
panic of 1869-1871; caused by post war problems; banking mismanagement (not on
the Gold Standard); unscrupulous speculation (James Fisk, Jr. and Jay
Gould, attempted to corner gold market 24-SEP-1869);
panic of 1873; caused by banking mismanagement, over-expansion,
over-production (particularly in railroad construction), Jay Cooke and
Company (bank), which helped the U.S. Government finance the Civil War and
also underwrote the construction of the Northern Pacific Railroad declares
bankruptcy 08-SEP-1873, which precipitates the "Panic of 1873" and the
ensuing three year depression during which more than 10,000 businesses
fail; European investors, where a depression is already underway in
Europe, begin to call in American loans, and the The New York Stock
Exchange closes its doors for 10 days;
panic of 1893; caused by banking mismanagement and speculation in
industrial stocks; Reading Railroad files bankruptcy 10 days before
Grover Cleveland takes office. The chief fear among Eastern financiers and
businessmen is that in a panic the United States could easily be forced
off the Gold Standard. Railroads go broke; many of the great
financial trusts begin to collapse; European banks begin selling their
American stocks and bonds, and a huge run on banks ensues, until more than
500 Banks have failed; the mistake of businesses was trying to do
too big a business on insufficient working capital; they borrowed until
borrowing became impossible, through the general contraction of credits
forced on the banks, and then came the crash;
World War 1
Great Depression & Crash of 1929;
mismanagement; speculation; excesses of the Roaring 1920s
World War 2
Savings and Loan Bail-Out
(Iraq) War (1)
If the Federal Reserve was so wonderful, why do we now have more inflation than before (especially since 1950)?
Perhaps the Federal Reserve merely used the Great Depression as an excuse to eliminate the Gold Standard?
The Federal Reserve wanted a fiat-funny-money system because the dishonest fiat-funny-money system is very popular among bankers and government officials, because it gives them the money to spend FIRST, early in the circulation cycle, BEFORE the currency loses its value due to inflation. This dishonest system shifts the losses to others that don't understand how they are being cheated.
There are three types of depressions:
n A combination of the Deflation and Hyper-inflation
The results are bad either way. BOTH erode value.
So, to say there hasn't been a depression since 1933 is NOT really true.
The double-digit inflation, price controls, and instability of the late 1970s and early 1980s was devastating too.
So, you don't have to be a rocket scientist to see how this could all culminate to create an economic melt-down.
The culprit is: inflation . . .
Notice above how the National Debt increased along with the M3 Money Supply.
The best analogy regarding fiat-funny-money systems is like playing the game of Monopoly, and one player can print all the money they want.
Before long, that player has all the money and property, and everyone else is broke or in debt. That's how the game is won!
Now consider what is happening in this nation (for some time now).
The banks and government print money out of thin air, and then try to loan it to everyone under the sun (including your dog; literally, some people get credit card applications for their pets and children, exemplifying how eager the banks are to lend money to everyone possible).
They prefer to loan it to people that have some hard assets/collateral, because it's hard to get blood out of a turnip.
Then, when some people default on their loans, the banks confiscate real assets and property; thus, converting money (printed from thin air) into real assets and property.
There is a moral issue here.
How can these inflationist practices be rationalized?
To really understand why the dishonest fiat monetary system is so popular among some economists, the business community, bankers, and government officials, it is necessary to understand how it gives those that receive the money FIRST an advantage, early in the circulation cycle, BEFORE the currency loses its value due to inflation.
This dishonest system shifts the losses to others that don't understand how they are being cheated.
Thus, our money system is essentially a PYRAMID scheme, and all PYRAMID schemes collapse, eventually.
Here's how it works (they don't teach this in any public schools).
The Federal Reserve loans money (with interest) to member banks (which charge more interest).
Up to 90% of each new bank loan is money created out of thin air.
But it gets worse.
For each dollar re-deposited into the fractional (9:1 ratio) bank system (a closed loop monopoly bank system), 9 times more new money can be created out of thin air.
Depending on the size of each loan, that PYRAMID scheme can continue until 90 times more money has been created out of thin air. However, the bank is required to have 10% of their loans in reserves.
For example, let's say the bank has $1111.11 in reserves.
That means the bank can make a loan of 9 times that initial $1111.11, which is $10,000.00 .
90% of each subsequent deposit can then be used for another loan of money created out of thin air . . .
There are also many reasons why a Great Depression has not occurred again since after World War II:
If the Federal Reserve was so wonderful, why did the Great Depression of 1929
follow 16 years later?
(001) 90% of that $10,000.00 can be loaned again, to create a new loan of $9,000.00
(002) if deposited, 90% of that $9,000.00 can be loaned again, to create a new loan of $8,100.00
(003) if deposited, 90% of that $8,100.00 can be loaned again, to create a new loan of $7,290.00
: : : : : :
(088) if deposited, 90% of that $1.16 can be loaned again, to create a new loan of $1.045
(089) if deposited, 90% of that $1.045 can be loaned again, to create a new loan of $0.94
: : : : : :
(131) if deposited, 90% of that $0.013 can be loaned again, to create a new loan of $0.011
(132) if deposited, 90% of that $0.011 can be loaned again, to create a new loan of $0.01
TOTAL SUM = $99,888.89 (of money created out of thin air from initial $1111.11 in reserves).
Thus, from the initial $1111.11 in the bank reserves, $98,888.89 (98.89%
of $100,000.00) of more new money could be created out of thin air.
However, the Federal Reserve and member banks are supposed to maintain at least 10% outstanding debts in their bank reserves.
If the nation-wide debt is $57 Trillion, then the banks should all have at least $5.7 Trillion in reserves. Right?
Where will the money come from for that $57 Trillion of nation-wide debt, when only 10% (if not less) of it exists in the bank reserves?
But it still gets worse, because a LOAN = PRINCIPAL + INTEREST.
And since the bank creates only the PRINCIPAL for each new loan, where does the INTEREST come from?
One of several things must happen:
It is a PYRAMID scheme, and all pyramid schemes eventually collapse.
It did not have to be that way, but greed and selfishness prevailed, and the Federal Reserve and the federal government failed to target ZERO percent inflation.
Instead, we have had positive inflation for 52 consecutive years since year 1956 !
As time goes on, this problem can only get worse.
Also, the FDIC (which insures depositors upto $100K per person) only has about $44 Billion in reserves, which is only 1.47% of the $3 Trillion in nation-wide deposits, there currently are 90 troubled banks on the FDIC's watch list, and IndyMac wasn't even on the watch list when it failed.
Note the banks below that have collapsed in 2008:
Bank Name, Closing Date, Updated Date:
 First Priority Bank, Bradenton, FL August 1, 2008, August 1, 2008
 First Heritage Bank, NA, Newport Beach, CA July 25, 2008, July 25, 2008
 First National Bank of Nevada, Reno, NV July 25, 2008, July 25, 2008
 IndyMac Bank, Pasadena, CA July 11, 2008, July 11, 2008
 First Integrity Bank, NA, Staples, MN May 30, 2008, July 25, 2008
 ANB Financial, NA, Bentonville, AR May 9, 2008, July 25, 2008
 Hume Bank, Hume, MO March 7, 2008, July 25, 2008
 Douglass National Bank, Kansas City, MO January 25, 2008, July 25, 2008
 Miami Valley Bank, Lakeview, OH October 4, 2007, July 25, 2008
 NetBank, Alpharetta, GA September 28, 2007, July 25, 2008
 Metropolitan Savings Bank, Pittsburgh, PA February 2, 2007, July 25, 2008
 Bank of Ephraim, Ephraim, UT June 25, 2004, April 9, 2008
 Reliance Bank, White Plains, NY March 19, 2004, April 9, 2008
 Guaranty National Bank of Tallahassee, Tallahassee, FL March 12, 2004, July 25, 2008
 Dollar Savings Bank, Newark, NJ February 14, 2004, April 9, 2008
 Pulaski Savings Bank, Philadelphia, PA November 14, 2003, July 22, 2005
 The First National Bank of Blanchardville, Blanchardville, WI May 9, 2003 July 25, 2008
 Southern Pacific Bank, Torrance, CA February 7, 2003, July 25, 2008
 The Farmers Bank of Cheneyville, Cheneyville, LA December 17, 2002, October 20, 2004
 The Bank of Alamo, Alamo, TN November 8, 2002, March 18, 2005
 AmTrade International Bank of Georgia, Atlanta, GA September 30, 2002, September 11, 2006
 Spanish Version September 30, 2002, September 11, 2006
 Universal Federal Savings Bank, Chicago, IL June 27, 2002, April 9, 2008
 Connecticut Bank of Commerce, Stamford, CT June 26, 2002, July 25, 2008
 New Century Bank, Shelby Township, MI March 28, 2002, March 18, 2005
 Net 1st National Bank, Boca Raton, FL March 1, 2002, April 9, 2008
 NextBank, N.A., Phoenix, AZ February 7, 2002, July 25, 2008
 Oakwood Deposit Bank Company, Oakwood, OH February 1, 2002, July 25, 2008
 Bank of Sierra Blanca, Sierra Blanca, TX January 18, 2002, November 6, 2003
 Hamilton Bank, N.A., Miami, FL, Spanish Version January 11, 2002, July 25, 2008
 Sinclair National Bank, Gravette, AR September 7, 2001, February 10, 2004
 Superior Bank, FSB, Hinsdale, IL July 27, 2001, July 25, 2008
 The Malta National Bank, Malta, OH May 3, 2001 November, 18, 2002
 First Alliance Bank & Trust Company, Manchester, NH February 2, 2001, February 18, 2003
 National State Bank of Metropolis, Metropolis, IL December 14, 2000, March 17, 2005
 Bank of Honolulu, Honolulu, HI October 13, 2000, March 17, 2005
Also, look at this unofficial list of
banks with negative or near-zero assets.
The only thing stopping the collapse of this debt-pyramid is the time-lag by creating more debt and creating more money out of thin air.
But that time-lag is shrinking every day, as the ability to repay debt becomes more difficult.
Debt will grow larger and larger.
The time it takes to finally collapse fools people.
Creating more money out of thin air to delay the collapse will make inflation get worse and worse.
It could take decades or centuries, but the inevitable collapse is a mathematical certainty.
Eventually, the debt and inflation will become impossible to deal with.
Eventually, you will need a truck load of dollars to buy a mere loaf of bread.
We will not be able to create more debt to create more money.
We will not be able to spend our way out of the collapse.
We will not be able to print (money) our way out of the collapse (due to inflation).
We will not be able to immigrate our way out of the collapse.
We will not be able to procreate our way out of the collapse.
We will not be able to increase productivity enough to avoid the collapse.
We will not be able to tax (or un-tax) our way out of the collapse.
Look at our current situation and results of this PYRAMID scheme:
"Highly placed sources in banking and business circles in Europe and South America warn that unless the U.S. government moves quickly to control the spending which is ballooning its deficit, America is in imminent danger of South American Banana Republic style hyperinflation." - Jack Anderson
Hyperinflation will be more devastating than a credit crunch. Hyperinflation will wipe out the middle-class by destroying the value of cash, savings, incomes, bonds, Social Security, and other paper instruments.
And how will it affect the stock markets?
It seems clear that the winds of hyperinflation are upon us. What will be the comparative effect of this addiction to money-printing,
borrowing, and the resulting hyperinflation upon index funds, like DIA, QQQ, and SPY, versus bonds and cash?
Hyperinflation has happened before and it can happen again.
Today, we have the perfect ingredients for hyperinflation.
Hyperinflation is not uncommon and has occurred in the following countries in the last 150 years:
For anyone who thinks it is bad now, they quite possibly haven't seen anything yet.
- Weimar Republic of Germany 1920 1923 (1/466 billionth of starting value),
- Zimbabwe 2003 - present (6 quadrillionth of the starting value and continuing to fall),
- Former Soviet Union 1993 2002 (1/14th of starting value),
- Argentina 1975 1983 (1/1,000th of starting value),
- Austria 1921 1923 (about 1/4 of starting value),
- Bolivia 1984 - 1986 (1/1,000 of starting value);
- Bosnia-Herzegovina 1992 1993 (1/100,000th of starting value),
- Brazil 1960 1994 (1 trillionth of starting value), Chile 1971 1973 (1/3rd of starting value),
- China 1947 1955 (1/10,000th of starting value),
- Greece 1943 1953 (1/50 trillionth of starting value),
- Hungary 1945 1946 (100 quintillionth of the starting value),
- Hungary 1922 1923 (1/4 of starting value),
- Israel 1976 1986 (1/16th of starting value),
- Japan 1934 1951 (1/362nd of starting value),
- Poland 1990 94 (1/10,000th of starting value),
- U.S.A. (Confederate States of America) 1861 1865 (1/90th of starting value, and then, by the end of the Civil War, the Confederate Dollar depreciated to zero).
- It also happened in the ancient Roman Empire, when the silver and gold coinage of that day was progressively debased with base metals, in order to fund wars, giveaways to the Plebeians, and various other adventures. There are many additional examples that I have not bothered to cover here.
The current dishonest and usurious pyramid-scheme monetary system explains why the nation is swimming in massive debt, which has NEVER been worse (including as a percentage of GDP):
- Total Domestic Financial Sector Debt = $17.2 Trillion
- Total Household Debt = $13.8 Trillion (for year 2007)
- Total Business Debt = $11.1 Trillion
- Total Other Foreign Debt = $1.9 Trillion
- Total Federal Government National Debt = $15+ Trillion
- Total State and Local Government Debt = $2.2 Trillion
Total = over $57+ Trillion
The total nation-wide $57+ Trillion has never been larger ever, both in size and as a percentage of the $15 Trillion GDP;
$57+ Trillion it is over $184K of debt per person (U.S. population=310 Million as of 2009), but only a tiny 2% of the U.S. population owns most of the wealth in the U.S. (a wealth disparity gap that never worse since the Great Depression).
Where will the money come from to repay $57 Trillion of nation-wide debt, much less the interest on that debt (which could be larger than the original principal debt of $57 Trillion itself)?
Why has the nation-wide debt (see below) been growing for over
52 years (not only in magnitude, but as a percentage of GDP ($13.86 Trillion in
Hence, the nation is enslaved to massive, growing debt that is inherent with a usurious, 9-to-1 fractional lending pyramid scheme.
The excessive debt and money-printing helps to explain one of the ways vast wealth has shifted in the last 30 years (see below).
The 1% of the total U.S. population that once had 20% (in year 1976) of all wealth now has 40% of all wealth.
Hence, the saying: The rich get richer, and the poor get poorer:
And median incomes have been falling since 1999 . . .
If we started now trying to pay back only the $11.4 Trillion National Debt, at only a 2.5% interest rate, it could take centuries to merely pay down 33% of the total National Debt:
The total interest and debt would be over $74.8 Trillion!
It's could take literally centuries to pay down the total federal debt.
And that is for only 2.5% interest.
The actual interest on the National Debt in year 2007 was already higher ($432 Billion) than the 279.6 Billion scenario above.
What's the likelihood of our Do-Nothing Congress ever having the discipline to do that?
The nation-wide debt is over $57 Trillion (as of MAR-2009):
If we started now trying to pay back the
total $57 Trillion nation-wide debt (at 2.0% interest rate), it
could take over 262 years, and that would require that we stop borrowing
billion per day, and start paying back more than the daily interest of $3.125
The total interest and debt would be over $301 Trillion!
This should all be very alarming to Americans.
No one can answer the question:
Where will the money come from?
Those that understand must help to energize their friends, family, and
associates, and help to spread the word. No one knows what the future
holds, but doing nothing will accomplish nothing.
Especially if voters still choose to (despite the many
repeatedly re-elect, reward, and empower the very same
bought-and-paid-for, look-the-other-way, incumbent politicians that use and
abuse the voters, and continue to ignore the nation's
growing in number and
severity, threatening the future and security of the
And, our education is already in the pipeline.
The question is:
(a) Will we learn the smart, less painful way?
(b) Or, will we learn the HARD, painful way?
Are we now facing a recession, and with so much debt (and interest due daily on that debt), will likely see more inflation.
Even though we have been brainwashed to believe 3% to 4% inflation is OK, it isn't.
Not when inflation is incessant, year after year (since year 1956), becoming exponential, like reverse compound interest.
Also, the wars in Iraq and Afghanistan are causing inflation.
Some of the consequences are from a trend that started around 1976:
Look at all the graphs above (after 1976).
Look at the National Debt in 2005 dollars (the black line with black squares).
Also, look at the Debt-to-GDP ratio (after 1976).
Also look at the GDP for in both 1950 dollars (green diamonds at bottom of graph) and 2005 dollars (blue diamonds; see ZOOMed graph).
Both have been falling since year 2006 when measured in both 1950 and 2005 dollars.
That has never happened before.
With the growing debt, the Federal Reserve and government may have NO choice but to print MORE money.
That will cause inflation, and that can cause recessions and bubbles.
But, to make the matter even worse, is this: more borrowing too!
(1) Because the borrowing will create a snow ball effect, in which it creates more pressure to print more money.
(2) The government and Fed have not demonstrated fiscal discipline since 1976 (or earlier).
(3) The government is FOR SALE. Politicians are more bought-and-paid-for and irresponsible.
(4) The Do-Nothing Congress will still refuse to pass many badly-needed, no-brainer, common-sense reforms.
Congress is where good ideas and solutions go to die in a sea of corruption, influence peddling, rank favor-trading, graft, pork-barrel, waste, and look-the-other-way/bought-and-paid-for incumbent politicians. That goes for BOTH parties.
Also, foreclosures are on the rise, . . .
Consider the following issues related to excessive debt and money-printing:
Obviously, that's not too smart is it?
If we all keep crappin' in our own nest, how long before the bough it all rests upon finally snaps, and this house of cards comes crashing down?
Yet, too many voters continue to repeatedly reward THEIR incumbent politicians with 85%-to-90% re-election rates.
Obviously, too many voters care more about THEIR party than their country?
Oh well, that's the voters' choice.
In a voting nation, an educated electorate is paramount, and voters are going to get their education one way or another.
At any rate, the voters have the government that they voters elect (and re-elect, and re-elect, and re-elect, . . . , at least until that becomes too painful).
"We are grateful to the Washington Post, the New York Times, Time Magazine, and other great publications whose directors have attended our meetings and respected the promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But the world is now more sophisticated and prepared to march towards a world-government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the National auto-determination practiced in past centuries." - David Rockefeller, in an address to the Trilateral Commission meeting,
balance of payments deficits is so strong and irreversible, that we must
accept that at some future date there will be a run against the U.S. Dollar.
Probably the kind of disorderly run that precipitates a global financial
crisis." - Dr. Paul A. Samuelson, Nobel Prize Winner in Economics, year
"The government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the tax payers will be saved immense sums of interest. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government's greatest creative opportunity. - Abraham Lincoln, assassinated President of the U.S.
"Whoever controls the volume of money in our country is absolute master of all industry and commerce . . . and when you realize that the entire system is very easily controlled one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate." - James A. Garfield, assassinated President of the U.S.
"The process by which banks create money is so simple that the mind is repelled." - John Kenneth Galbraith, Economist
"Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of sovereignty of
Parliament and of democracy is idle and futile . . . Once a nation parts with control of its credit, it matters not who makes the nation's laws . . . Usury once in control will wreck any nation." - William Lyon MacKenzie King, former Prime Minister of Canada (who also succeeded in nationalizing the Bank of Canada).
In 1913, the struggle for a better monetary system was lost when President Woodrow Wilson signed the Federal Reserve Act, giving the privately owned international banking cartel the power to create the United States money. Later, Woodrow Wilson stated: "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world, no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men. - Woodrow Wilson, President of the U.S. 1913-1921.
"Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when the speak in condemnation of it." - Woodrow Wilson, President of the U.S. 1913-1921.
"Fiat money is the cause of inflation, and the amount which people lose in purchasing power is exactly the amount which was taken from them and transferred to their governments by this process." (G. Edward Griffin, "The Creature from Jekyll Island")
"A fiat monetary system allows power and influence to fall into the hands of those who control the creation of new money, and to those who get to use the money or credit early in its circulation. The insidious and eventual cost falls on unidentified victims who are usually oblivious to the cause of their plight. This system of legalized plunder (though not constitutional) allows one group to benefit at the expense of another. An actual transfer of wealth goes from the poor and the middle class to those in privileged financial positions." (Congressman Ron Paul
(R-TX), "Paper Money and Tyranny")
"When the President signs this
bill [converting to a fiat-money system], the invisible government of the
monetary power will be legalized . . . the worst legislative crime of the ages
is perpetrated by this banking and currency bill." (Charles A. Lindbergh, Sr.
"Whoever controls the volume of money in any country is absolute master of all industry and commerce." (Paul Warburg, drafter of the Federal Reserve Act)
"Permit me to issue and control the money of a nation and I care not who makes its laws." (Mayer Amschel Rothschild)
"Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly." (Fifth plank of the Communist Manifesto, 1848)
"Ideologically, [sound money] belongs in same class with political constitutions and bills of rights." In the name of civil liberty and civilization itself, the Fed should be abolished. (Ludwig von Mises).
Senator, Warren G. Harding, who was elected to the Presidency in 1920, said in a 1921 Congressional inquiry that the Reserve was a private banking monopoly. He said: "The Federal Reserve Bank is an institution owned by the stockholding member banks. The Government has not a dollar's worth of stock in it." His term was cut short in 1923 when he mysteriously died, leading to rumors that he was poisoned. This claim was never substantiated because his wife would not allow an autopsy.
In 1993, Senator Bob Kerrey promised to support President Bill Clinton's Budget Plan, if Clinton would appoint a Committee to study the condition of the American economy. The President established a 32-member bipartisan committee and in August, 1994, they issued their report. According to the committee's findings, by the year 2012, unless drastic changes are made, we won't even be able to pay the interest on the national debt. Knowing this, the federal government has allowed the trend to continue, almost as if they're trying to run our economy into the ground. It seems obvious that the destruction of the American economy will eventually be a result of trying to
keep people in deep debt, and financially enslaved.
In a letter to Edward M. House (President
Woodrow Wilson's closest aide), dated November 23, 1933, Franklin D. Roosevelt said: "The real truth of the matter is, and you and I know, that a financial element in the large centers has owned the government of the U.S. since the days of Andrew Jackson."
"I sincerely believe ... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." (Thomas Jefferson)
"Of all the contrivances for
cheating the laboring classes of mankind, none has been more effective than that
which deludes them with paper money." (Daniel Webster)
"All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation." (John Adams)
"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." (Lord John Maynard Keynes (1883-1946), renowned British economist).
"Only small secrets need to be protected. The big ones are kept secret by public incredulity." - Marshall McLuhan, media "guru"
|The inevitable collapse of the dollar (all pyramid-schemes are doomed to collapse)|
|Falling U.S. Dollar (click here to see charts of U.S. Dollar falling against all major currencies for over 7 years)|
|Glenn Beck - Economic Disaster is Not Far Fetched|
|David Walker Part 1 - America's Financial Future|
|David Walker Part 2 - America's Financial Future|
|David Walker - U.S. Government Immorality Will Lead to Bankruptcy|
|Economic Concerns - CNN Reports|
|Heading For Disaster|
|Thom Hartmann - The Economy Is About To Collapse|
|Reckless Expansion of Credit and the Impending Recession|
|100% Chance of Recession & Stock Market to Plunge 50-60%|
|A Suicide Economy China threatens to cripple U.S. by sell-off of U.S. Securities|
|United States For Sale|
|David Walker - 60 Minutes Summary by Steve Kroft|
|GAO: "USA is living beyond its means"|
|List1 of Failing Banks . . .|
|List2 of Failing Banks and Banks with negative or close to ZERO assets . . .|
|List3 - FDIC list of failed banks . . .|
|BANKS OF AMERICA-Federal Reserve Bank KILLING America PT 2|
|BANKS OF AMERICA-Federal Reserve Bank KILLING America PT 1|
|NATIONAL DEBT on Lou Dobbs. It's much higher than you think!|
|Zeitgeist - The Movie: Federal Reserve (Part 1 of 5)|
|Zeitgeist - Addendum - How Money is Created as Debt|
|National Debt Exploding under Bush (now over $10 TRILLION!)|
|A message from DonHarold.net|
|Money, Banking and the Federal Reserve|
|What you should know about fiat-funny-money (47 minute video)|
|The Growing Disparity Trend (these did not all come about by mere coincidence over the last 30+ years)|
|The Problem and the Solution (account for the human factor)|
|CONGRESS' To-Do List (see what Congress has done since the NOV-2006 election)|
|Irresponsible Incumbents (what irresponsible incumbent politicians do while troops risk life and limb)|
|PROs and CONs (why to stop re-electing irresponsible incumbent politicians)|
|National Debt (it will take 143 years to pay off the National Debt)|
|Consider the Following Scenario (must we always learn the hard way?|
|Plunder of the Environment (population, arable land, over-fishing)|
|Solutions (common-sense, no-brainer reforms that politicians resist)|
|Help Educate Others (peacefully force government to be responsible and accountable too!)|
|Congress is denying the voters' right to an Article V Convention|
|Badly-Needed, Common-Sense Reforms|
|The Cheater's Philosophy (learn to recognize their manipulation)|
|Frequently Asked Questions|