What do history's most notorious despots have in common with many of the flag-waving, patriotic politicians of our day? Both groups rise to power through the exploitation of fear, which has become a societal plague. There have been widespread casualties. We need an antidote. Feardom offers its readers a much-needed immunization.
photo credit: Michael P
“Fiscal cancer” is the perfect metaphor for our nation’s current economic situation. Our pathetic politicians deserved to be continuously lambasted for their inaction and fiscal lethargy for not fixing the system. Too much rhetoric and wheel spinning gives the illusion of progress, but the situation continues to decline. The only one I’m aware of calling the shots as they are is Ron Paul. Half of his articles deal exactly with these issues, but as he describes in this video, his fellow congressmen don’t listen. It’s far too easy to pass the buck down to the next Congress and the next generation.
Comptroller General Walker’s video interview, while encouraging, fails to address two additional core issues at the heart of our economic crisis.
The Federal Reserve
When asked what the government might to do raise more money, Walker suggests some possibilities, raising taxes and cutting government funding among them. But this isn’t the way things it has been done in recent decades. Politicians don’t like to raise taxes because it is highly unpopular and they risk losing their seat. And they certainly don’t like cutting funding to their pet projects and personal pensions. What to do, what to do…
That’s where the “Federal” Reserve comes in. Our government simply issues orders for more money, and the fiat currency is literally created from thin air. This increasing of the money supply is the root cause of inflation.
The gimmick can only go on for so long, and pretty soon we will surely learn that what goes up must come down. The immoral inflating of the money supply to pay for government programs and wars has led to a dollar that is worth 4 percent of its original value. 4 percent!
Foreign markets are abandoning the dollar and diversifying their assets, meaning that they are losing trust in the dollar. There will soon come a point where the greenbacks will be downright rejected as countries and central banks refuse to give America goods and services for which it cannot pay. Why foreign markets have put up with the dollar for so long amazes me. They surely do not realize the magic trick that is the Federal Reserve. Money does grow on trees in the USA, despite what your parents told you! Those trees are called printing presses.
Walker also neglects (largely due to time constraits, I’m sure) the fact that foreign nations hold a large amount of our national debt. Our nation is in financial bondage to other major world powers who have given us goods and services in exchange for our magical Federal Reserve Notes. President Bush should be harshly condemned for breaking the record of all other presidents combined in creating foreign-held debt. From the linked article:
Throughout the first 224 years (1776-2000) of our nation’s history, 42 U.S. presidents borrowed a combined $1.01 trillion from foreign governments and financial institutions according to the U.S. Treasury Department. In the past four years alone (2001-2005), the Bush Administration has borrowed a staggering $1.05 trillion.
What else can be concluded from such evidence other than the simple fact that our nation is heavily in debt, especially to foreign powers who will soon reject our magic paper currency and turn from creditor to collector?
Mark my words: The collectors will come calling. Anybody who has dealt with collections knows that these are not nice people. As creditors they are kind because you are paying them with added interest on a fractional reserve banking scheme that transfers your wealth to them. But when they realize you cannot make good on the credit, they get upset.