Dear readers:
After visiting this morning with my husband at the hospital (he’s battling a very aggressive form of cancer), I found myself in a very pensive mood (which should be no surprise to anyone), and overheard a discussion on economics coming from the TV in the next room. The financial pundits were in disagreement as to whether the government’s stimulus package would kickstart the economy into recovery and, keeping in mind that each of these ‘experts’ was convinced that he was the smartest guy in the room, their discussion ended with an agreement to disagree. The optimists on one end of the spectrum took a wait- and- see- what develops posture, while those on the opposite end of the spectrum insisted that we are in for dark times ahead. I tend to agree with the latter.
As I halfheartedly listened to this outpouring of economic wisdom, I scribbled down the numbers that they were throwing around, and I gradually came to the realization that, given our current status as a massive debtor nation, we Americans would be unable to meet our financial obligations to foreign interests even if we were taxed at a rate of 100% ! And now it’s got me to thinking about who we are as Americans, where we are as Americans, and where we seem to be headed in the (very near) future.
I wish to God that I could continue to believe that everything will work out, that everything is going to be okay in the end– but I can’t bring myself to drink the Kool-Aid anymore. And I never have and never will find it in myself to just bend over and grab my ankles. Believe me when I say that I’ve had it up to my eyebrows with being lied to, with being manipulated, and with being forced into INVOLUNTARY servitude by an out-of-control government and the virulent, malignant egophrenia of its ‘leadership’. Like almost everybody else, I would love to turn my thoughts to the upcoming summer, to the beach, to Disney World, to the wonderful ordinary things of life to which we have become accustomed as Americans. But I can’t do it, and here’s the reason why: our ‘leadership’ (both Democrats and Republicans) has distorted the real cost of living for decades, deceiving and confusing the American public with talk of inflation, deflation, stagflation and other gobbledygook. And I believe that they have done so, and will continue to do so, in order to delude the American public into believing that inflationary problems will soon be at an end, and that everything will once again be rosy. But those of us who lack the capacity for self-delusion and wishful thinking have begun to smell a rat.
The Community Reinvestment Act, which, under the presidency of Bill Clinton, began to be used as a bludgeon in order to blackmail banks and other lending institutions into making loans to people who would never be able to pay the money back ( this ruse, as always, was done in name of fairness for the less fortunate). And, as usual, it is turning out to be unfortunate for those of us who will have to pay for it, and less so for those who have received the benefit of those loans. Once the news got out, mortgage brokers started popping up out of the ground like mushrooms, and it became easier than ever for anybody to buy a house. Ridiculously easy credit made it possible for someone making $18,000 a year to buy a half million dollar house–and what’s the big deal if we fudged the numbers a little bit? I mean, isn’t it the right of everyone to have a home of his own? NO, IT IS NOT EVERYONE’S RIGHT !!! And especially not if I am the poor idiot who will eventually have to pay for it. The whole concept is as ludicrous as the idea that every child has a right to go to college (even if the little dope barely had the brains to get through higschool. It is as ridiculous as is the notion that anyone who wants one should have access to a free diabetes testing kit (I know someone who has 10 of them), or diabetic shoes (whatever they are), or free motorized scooters (my mom has two, which have replaced her four walkers). What’s next? Free cell phones? Governmental tinkering and manipulation will be the death of this country. But not without the assistance of greedy moneylenders who will make money from illegally applied- for mortgages up front. And not without the assistance of the legions of financial “specialists” who stuff their pockets with the proceeds of questionable financial arrangements at the expense of their clientele, and of the nation at large.
The day will soon come when banks will begin calling upon the Federal Reserve to print up an endless flurry of brand-new fiat currency to help them cover their deposits, which then will snowball into God- only- knows- what, with credit card companies screaming for someone (anyone), to help them cover their losses. And then brokerage houses (why not?), and mortgage lenders, and anyone else who had the good sense to bribe a politician or two on the way up. And you and I will get to pay for it all ! And those of you, who ( like me), have lived within your means, who have saved your money rather than spending it stupidly, will once again be forced to bail out those of us seduced by grandiose dreams , and even more grandiose lifestyles. And, oh yeah, your savings will likely be wiped out in the process …
The US government and the Federal Reserve are taking the American people down the left hand path to disaster via political expediency, and I only wish that it was merely a matter of gross mismanagement, rather than the servicing of big- money special interest groups through a let’s- play- pretend bottomless pocketbook. The solution to not having enough money to meet our financial obligations IS NOT to print more money, and definitely not TO BORROW more money! Our economic system is based upon the dollar’s being backed by the full faith and credit of the United States government (and not by gold or silver). The only other alternative would be for us to renege on all of our existing debt and financial obligations (another possible unhappy ending). And so we find ourselves with a ‘leadership’ which spends borrowed money like a drunken sailor, and which then prints more money to cover the debt (which will more than likely bring about the eventual absolute collapse of the value of the US dollar and all related dollar- backed paper assets. Armageddon? Definitely maybe.
When the Weimar Republic of Germany collapsed no one saw it coming. Their currency was so quickly devalued that no one could prepare for it. Grocery store shelves were empty. Paper money was worthless. And now the Federal Reserve Bank (which is in no way related to the US government) is calling upon our leaders to give the Fed permission to borrow money on it’s own authority, and not on the authority of the US treasury, which would give the Fed the authority to borrow much more money than is needed to run the government, while at the same time driving all Americans further into unfathomable debt. I imagine the Fed would then have the power to force America and all Americans to dance to its tune at that point. Does the term ‘human collateral’ resonate with you at all?
I’m just a simple American– not a simpleton, just uncomplicated. I’m not a mover or a shaker. I’m not grandiose, nor do I want to rule the world or anything else. I’m not a member of a secret society, nor am I privy to a secret handshake or agenda. I’m just a humble locksmith who seeks nothing more in life than to live in peace and harmony with my family, in my community alongside my neighbors, and in the nation in which I have lived for all of my life. It’s not in my nature to be an alarmist, but there is a sliminess, an intangible something or other in the air that’s beginning to make my skin crawl .
If this economy collapses, it will be nothing like the Great Depression. I believe it’ll be something which has never seen before in this country. Our manufacturing base is practically nonexistent. We depend on other nations for everything from apple juice to underpants. This is no longer an agrarian society. Oh sure, we still grow plenty of food in this country– it’s just that agribusiness owns the food. How many Americans know how to plant a garden anymore? How many Americans have a place to plant a garden anymore? If there’s no food on the shelves, and if no one knows how to grow food, and if no one has thought to store food, then what could possibly come next? If Americans can’t drill for oil, and if Americans can’t refine oil in sufficient quantities, and if Americans can afford oil or gas, then what could possibly come next? Civil unrest? Rioting? Total anarchy followed by martial law? You do the math.
The general price of everything is due to the increase in the overall amount of cash in circulation. As I am just thinking out loud at the moment, and as I am not an economist, but rather a simple tradesperson, I am only capable of applying my theory to goods and services. I doubt that I could even begin to evaluate the pricing of financial assets. But I do know that the German people in the 1920s (when their currency inflated by 20,000 percent) saw the same phenomenon we are seeing today in our society. The people of Hungary after World War II saw the same thing, as did the people of the now- dismantled Yugoslavia in the 1990s. And all because their governments, just like ours, found themselves unable to resist the urge to print worthless money in lieu of raising money for its perceived needs through taxation or other means.
I would love to hear your thoughts on the topic, and I look forward to hearing your comments. Now go out there and try to have a great day, ’cause I know I’m gonna (try)…
Val