At the preliminary stages of the financial crisis that is the global economic meltdown, there was talk in the marketplace about nationalizing banks. Whether this would work or not depends largely on one factor, the power of the Federal Government, to effect. The most misguided interests of the government have been deflation and penny-pinching; in an attempt to fight the financial crisis.
Banks, being conservative in their economic strategy, would raise their interest rates and would introduce tighter lending policies that struggle in the same faith to preserve the same margin over time. Governments tend to see their actions in these matters as being afraid and thus, shouldering the undue worry of the whole population. In times of financial crisis, these actions create a social responsibility where the population will lose faith in the financial system and, within months, would demand better results.
J. P. Morgan bank, one of the wealthiest banks of the world, once held a bill of Henry Paulson, who was then the Treasury Secretary. In admire Theory of commonly used reference very soon after the crash of 1929, they moved their operations out of American and set up shop in London. Inexperienced in economics and politically unstable, they were happily operating with the City of London, a safe haven for the private bankers, some rather reflective of their actions.
This and many like it were among the primary sights that were witnessed during the Bernie Madoff scandal. He [ buds] was charged with un suspects, but, at the same time, was124 on the autonomous crash of 9/11, which occurred after the financial crash. His brother, hedge fund operator John Paulson, was ultimately held accountable for his role in the crisis, but was instead rewarded for his wisdom.
The same “too big to fail” scenario applies even to governments and banks. The immediate after-effects of 9/11, with it’s sister planes that were headed towards the World Trade Center laughing all the way, and you’ll know who is thoroughly assisting from the very start. [Note: as it relates to the World Trade Center attack, it was actually the collateral damage contractors trapped in their office after the building collapsed.]
But let’s come back to what really happens, inflation? No… The real inflation is on the senses and your capacity to handle it. We are experiencing an inflationary environment that is displaying a price tag like those of businesses in the 1970’s. We’re experiencing oil at $55 a barrel, every time this happens; you get the “run for the hills” mentality. They need no air conditioning.
Now with unemployment and layoffs obviously climbing, people are fearful of their jobs which has been a constant throughout history, but you know what, none of this is new. You could go back to the days of the Great Depression in the late 1970’s and 1980’s and see the same thing. At this time, the US was under such a crushing debt of around $600 billion to pay off all the debts of the federal government. We were so over budget and so heavy on government spending that the government couldn’t pay for all its expenses, let alone pay back its debts.
Since the US went off the gold standard to get to such a level of spending and debt, you can say there is the same thing occurring today. Our government is lying to us. They refuse to undergo what is obviously, unaffordable. Well, the choice is there, and you know what, zero government spending will lead to an economic meltdown as we have never experienced before.
Understanding the nature of the financial arrangements of the United States today, you can see they are dependent on borrowing money. To get to anywhere in Europe, you need to pay somewhere 30% on your savings or your debt (debt bypasses savings). For the US, we have no savings. So, we have to charge things and pay interest on them.
So the problem is there is no free market when you have a central government. The federal government is a vast entity, and so, they cannot or do not allow the market to self-manage. You can add federal debt in the many trillions of dollars that it now carries in its net worth.
The reason the federal government prints money is to create the ability to borrow money to be able to spend it on its stated attractive needs. So, in short, all the while, the system is designed to keep you poor and enslaved. If the federal government needs more money, then print more money of the same design to make more money.
We are in a new era of economics, where the owners of the currency actually own the government, and the freedom that our freedoms once came to afford us is no longer available to us.
As you can see, the monetary system is a modern-day version of the ancient world’s trade, barter system of goods.
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