‘Cheapen the Dollar, Cheapen the Debt’
was a phrase used by a talking head today on CNBC. Which translate to the Federal Reserve inflating it’s way out of debt at taxpayers and savers expense.
Global connections of CDSs trap us in downward spiral. We, The People, cannot escape the Greek, Irish, Portuguese, Spanish, Italian or our own debt problems. You and I had little to do with the debt problem. Yes, we spent more than we made, but, we could reign in our spending and recover in the long term. AND, we are doing just that. The problem remaining we cannot unwind- Global investment.
Central bankers fund investment across the globe. When risks became too high for the central bankers to endorse, insurance policies were invented as a cover. Credit Default instruments are nothing more than insurance against default on a debt. Big banks and institutions lay off debt much like the bookies balance their sheets with bettors on the other side. Credit Default instruments unlike bets can go on and on and on. The fee charged to maintain the insurance can go up and down through time, but the debt and the risk still remain until the debt is settled.
Crisis ’08
In housing, the duration of the debt can be 10-15-20, even 30 years. When investor banks bought large quantities of shaky mortgage back securities, they accepted higher risk for higher rewards. The birth of Credit Default instruments allowed for the explosion of mortgage backed securities. But, it did not eliminate the debt nor the risk, it just made the potential disaster “seem” less ominous.
The Federal Reserve fits into the equation as the backer of banks. If a bank cannot survive a credit event such as we saw in the collapse of ’08, the ripple affect goes all the way to the pockets of the investors who own the Federal Reserve. Ironically, the “one of the largest at risk institutions” in the ’08 event must have been Goldman Sachs, because an elaborate scheme was devised to recapitalize Goldman at the cost of Lehman Brothers and AIG investors and eventually the U.S. taxpayer.
While the ’08 credit event cost us a few trillion dollars, and gave us this “bogus” administration, the Federal Reserve was not out of the woods. A looming deflationary spiral would send the owners of the Federal Reserve to the poor house. Reason- the US debt held by the Federal Reserve would be paid back with much costlier dollars then the rate at which they bought the debt. Solution- print money. The issuing of currency by the Federal Reserve devalues the currency. The net result means paying back debt with cheaper money than that which they bought the paper. The owners of the Federal Reserve win and the citizens lose. Is that in the best interest of the USA?
Conquer and Enslave
Headline- The Fed- Aliens Among US comes from the theme for many a science fiction movie. Aliens arrive on the Earth and begin destroying our world. A simple plot which usually gets our interest. We always win and the aliens either leave the planet or are vanquished. That’s the movie aliens, but, we are dealing with the Federal Reserve aliens. There is no known antidote for the central banking malaise. Countries catch it and they eventually go out of business. Or, as in science fiction movie plots they are transformed into zombies doing the alien’s bidding. The script written by the central bankers remains the same– “Conquer and Enslave.”
Today, we have been whittled down to a few resistance fighters. Most of the earthlings were buried by the time Jimmy Carter infected the rest of the nation. The once proud individualist had come to terms with the “we are helpless,” condition. Government was responsible for curing our problems. But, it wasn’t at the root of the problem, they were the only face we saw on the “big brother” screen. We never saw the Federal Reserve as problem nor solution. The aliens were until recently invisible to the average man. As, I said, most of those aware of the true nature of the Federal Reserve were buried long ago.
Individualism and Independence
If we cannot fire the Federal Reserve, and we are helpless to take away its power, how do we fight the ongoing march to slavery? Returning to individualism and reliance on independence takes away the power of the Federal Reserve. Much like kicking an addiction, weaning ourselves from the “globalism germ” will be painful. Our minds will try to convince us we can have just part of globalism and it will be okay. But, abstinence means abstinence.
Being an individual means discovering what we can do on our own. Jobs we can do, businesses we can create, lives we can live which are less and less dependent on the global product. We should begin to think of ourselves as independent from the governmental sphere. Not treasonous against the central government, but, apart, living as free individuals from government restraint. That was the Founders vision of our Republic. That was “positive” liberty.
This is not about the destruction of government, but, the return of government limited in scope. As individuals with a moral code we conduct business and live respectful of others. Our history shows we can and do operate on a set of self governing principles. As individual, independent citizens we do not need a Federal Reserve. If we make faulty decisions we bear the consequences, not government, nor it’s fellow conspirator the Federal Reserve. This struggle with the aliens is about about independence and individual freedom vs redistribution and financial slavery to a race of beings who view us as fodder for power & profit.
