Posts Tagged ‘recession’
There are not too many topics that Americans seem to shy away from politically. Unfortunately, however, one of those topics we don’t like to talk about just happens to be the most important. The monetary system in this country receives absolutely no airtime on the major media networks. There is no debate about monetary creation during the presidential races. And, amazingly, most Americans don’t even know where their money comes from and how it receives its value. This is a trend that truly needs to change before America will be able to break the horrid boom and bust cycle of our economy.
I think it’s safe to say that our country is going through some very challenging times. As if a war half way across the world isn’t enough, we have now been hit with a recession touted as being the worst since the Great Depression. While the US has weathered other recessions that could arguably be considered worse than the current one, none of those were near as threatening. The US has never been in such terrible financial shape while going through such a crisis. This is not to say that we were in good shape at the time of the Great Depression. However, our current national debt, which makes the debt of the early 20th century seem like chump change, is threatening this country in ways never before experienced.
There is a lot of finger pointing going on, mainly by our politicians who don’t want blame to fall on their shoulders. The government’s main culprit thus far has been the greed of corporate executives. Our situation has transformed into another blame game where the free market is destined to lose. The strategy of big government during recessions is to blame capitalism in order to gain support for more governmental regulations. If the market gets better, the politicians cheer the effectiveness of the new regulations. However, if the market should go deeper into recession, the government claims it is because not enough regulations were instituted. Do you see how this is a tad bit unfair to capitalism? How will the free market ever get a chance under these unjust critiques?
Anybody claiming the free market caused this crisis should seriously reconsider. The US is not a free market economy. We haven’t had a free market since the Federal Reserve (a.k.a. the Fed) was established in 1913. A free market cannot exist in a society where interest rates are controlled by a central bank.
These are troubling times for our country. This recession, touted as the biggest since the great depression, has everybody running scared. Obama loves ratcheting up fear about it when he addresses our nation. Of course, he is just following the Big Brother game plan. In order to subdue the masses into accepting your seemingly tyrannical proposals, you must frighten them into submission. And even though the republican president who just left office also passed a huge TARP bill costing our nation over $1 trillion and was a huge predictable failure, republicans are now acting as if they care about too much spending.
Our government added around $1.5 trillion dollars to its total debt in 2008, bringing the new total to right at $10.7 trillion. That number, of course, does not take into effect future obligations. All in all, our government owes $65.5 trillion now and in the future. Do you think the current politicians are going to be blamed for bankrupting our country when the full debt starts coming due? Obama will be a distant memory in 2030 or 2050, which are estimated to be the times when we finally wreak the fruits of our massive government spending. But how can our government currently owe $10.7 trillion when based on the M1, only around $1.4 to $1.5 trillion in actual cash and coin exists? The main reason is our money is created out of nothing.