If the economy were really doing well, as the media would have us believe, then why continue to buy $85 Billion of debt? The very obvious answer- it ain’t!
Ron Paul, was interviewed recently on the issue and made this abundantly clear. He is such a breath of fresh air among an atmosphere of complete deception conducted by the Corporate owned media monopolies and the bought and sold politicians. Only 12 minutes long, it points to some significant problems that lie on the horizon or the 3000 lb. gorilla that the media and our politicians refuse to acknowledge.
[vsw id=”NLHrZTwyOLc#t=394″ source=”youtube” width=”425″ height=”344″ autoplay=”no”]
Where is all of this leading? Well, to be frank, most likely a collapse of the currency and the economy it is built upon.
Recovery? How – By Spending Money Based on Nothing?
Contrary to popular spin, we are not recovering. We are running on fumes. A debt bubble is continuously being inflated and the Fed is caught between a rock and a hard place at this point in time. We are sitting at nearly $17 Trillion in national debt at present which is over $53,000 per citizen or $148,180 per taxpayer. And it ain’t slowing down anytime soon!
The food stamp cut passed by the House, which will likely NOT clear the Senate to be vetoed by the Secretary General, Obama, is $5 Billion. That is 5% of a $78 Billion budget. How much will that slow the growth of debt I wonder when unfunded liabilities related to Medicare and Social Security amounting to over $100 Trillion loom on the horizon during the next few decades as boomer’s retire?
Dream on. This bubble will inevitably POP! Just like the housing bubble ‘cept much, much worse consequences.
A Real Life Solution
Fact is, there are really only 3 ways to create wealth-mine something, grow something and then make something. The Detroit bankruptcy points to the solution- jobs! Not government bailouts, city revitalization or government reform but quite simply jobs. Larry LaBorde, a trader for 321gold, was inspired by his reading of a new book (See below) points out in a recent article online:
In order for a society to have wealth it must create wealth. There are only 3 main ways to do this: manufacturing, mining and farming. Service industry jobs are great but an economy cannot be built on doing each other’s laundry and cutting each other’s hair. Someone must make something, grow something or dig something out of the ground. It is just that simple. Mining, manufacturing and agriculture are what create wealth. The service industry is where we spend our wealth. All “jobs” are not the same. It is critical that we have more jobs in the wealth creation sector.”
The private cartel of the Fed wants to wave their Keynesian magic wand of money based on nothing and make it all go away. With international financiers, politicians and Corporations feeding at their easy money trough- it will not! The Fed’s printing of the $ has all but destroyed it’s value since its inception in 1913. The dollar is worth about 4 cents of what it was worth before the Fed began.
We don’t have much time left. Some think a decade, maybe a little less. That seems highly optimistic to me. Better prepare for a tumble. The latest move by the Fed is NOT a good sign.