The United States has been subject to many clandestine influences that have brought our present great nation it its existing dilemma. This is a dilemma that we might not survive. When we speak of the economic conundrum that now eclipses America, if our politicians on Capitol Hill and the public do not wake up and take the appropriate action we will see a monetary crisis that will kick off another Great Depression. As if this recent recession had not already been devastating enough, it could even get worse.
Destruction of buying power
Since the Federal Reserve came online in 1913 and dislodged America’s existing banking system the US dollar has devalued to a mere 4 cents. In other words, the purchasing power of the American dollar has decayed by 96%. So compared to the US dollar of 1913 we know only retain 4 cents worth of value in the present day. The Federal Reserve has achieved this horrid feat by cyclically inflating and deflating the economic cost of living through manipulation of the dollar’s value. They achieve this through the increase of interest rates and money supply. By tightening money supply interest rates climb and the US retail consumer as well as US businesses pay a premium for loans and credit lines. As a result the cost of living increases.
Insanity of federal fiscal policy
Since the Federal Government continues its policy of refusing to balance the budget thanks to buying votes by funding unprecedented levels of welfare, food stamps, real estate subsidies, unemployment benefits, benefits to illegal aliens, and other social engineering programs, the Federal Reserve prints money to meet the demand of the deficit. Federal Reserve Notes printed for the US government come at a price. It costs the federal government billions in interest as it monetizes its incredible debt. As a result of the incredible federal deficit that has been waged by the Obama administration the US government actually out competes the private sector and the retail consumer for the majority of the loan money available on the market that would normally be there for home mortgages, car loans, and other purchases by citizens.
Manipulating the dollar
As a result mortgage money becomes scarce and hard to qualify for requiring large down payments. Whereas previously due to the lax policies of credit requirements thanks to the provisions of the CRA (Community Reinvestment Act) once again government intervention created a real estate bubble that caused many defaults, investment losses, and an economic impact so devastating it has not been felt like this since the Great Depression. The Federal Reserve was more than happy to fund this fiasco as Wall Street, the banking industry, and Democratic leadership re-assured the public and themselves that such Federal Loan backing institutions such as Fannie Mae and Freddie Mac teetering on the verge of insolvency were simply too big to fail!
The terrorist arm of the Federal Reserve
Ask yourself why when our complex and punishing system of progressive taxation needs to be badly overhauled and made less confiscatory does Congress do nothing to rectify this situation? The IRS is a beast that weighs down heavily the budget of the federal government while bullying US citizens and US corporations to the point of negatively impacting the US economy. When consumer funds and corporate revenues go to the federal government fraternity of hired employees instead of being used to stimulate the private sector jobs are not created. Retailers feel less demand. There is no economic growth only a Federal Reserve backed terrorist agency (IRS) who stifles the growth of US commerce, jobs, and general prosperity just to feed the fiat money game of the Federal Reserve. As a result the entire nation suffers and remains in a perpetual recession with a combination of socialist policies and Federal Reserve backed confiscation of dollar devaluation and IRS terrorism.
The cost of devaluation
Every US citizen pays the price of 80 billion dollars a month worth of fiat currency being printed or created as credit within the Federal Reserve computers in order to float a US recessionary economy that is oppressed by government policy and entrenched radical ideology. As the US dollar slips further into an inevitable cycle of devaluation due to low interest paper money flooding international markets to pay nations who have purchased US debt, a looming catastrophic adjustment seems the only eventuality.
Are there solutions?
Is there a way out of this malaise? Yes. Will it be implemented? Probably not! What measures could be taken to remedy this tragic down spiral of America at the hands of our cowardly politicians and accommodating Federal Reserve? The answer to both questions lies in decisive political action and a change in US monetary policy. Once again with a road map to success that has already been historically unitized in the past, will this formula be implemented? Chances are that unless a conservative and Constitutional White House emerges from the rubble of the Obama failures, it is highly unlikely.
If such action is not taken what does this tell us? Does this tell us that our government is poised to self- destruct regardless of the impact upon its citizens? Are there simply cowardly and inept office holders at the helm or is there an even more sinister agenda at work? Could it be that the massively influential Federal Reserve is perpetuating this sabotage due to the politicians they have vetted, due to the threats they can use to force there will upon us, due to the fact that they will ultimately own this country and the income making capacity of every individual on the face of the North American continent as their tyranny further unfolds?
In part III we will explore this and other scenarios and what should be undertaken in order to restore our nation’s economy as well as its commerce with its allies through-out the world so America can regain its credibility.