Over the last few weeks, I have made my opinion regarding our nation very clear. Based on my extensive research, and willingness to accept the facts, i believe we are on the edge of collapse as a nation. If you were to read through all of my posts(which I believe would be beneficial) you would be able to see why I feel we are in grave and imminent danger. However, for the sake of convience, I will attempt to summarize several posts into one. My hope is that after you read this you will fully understand the danger we face, and join me in fighting it.
The Federal Reserve
I believe it to be necessary to start at, what I consider to be, the root cause of our problems; The Federal Reserve. The Federal Reserve is the U.S central bank that was started when the Federal Reserve Act was passed in 1913. Three years earlier, 1910, a secret meeting was called by Nelson Aldrich on Jekyll Island. In attendance were powerful men like JP Morgan, John D. Rockefellar, and Paul Warburg. These men represented 25% of the worlds wealth! The goal of this meeting was to unite their banks to eliminate competition. When the Federal Reserve Act was passed in 1913, the Fed was given the right to coin money and control interest rates, a right that is given to Congress under the Constitution. It is also important to note that the Federal Reserve is a private banking cartel and NOT a gov't organization. Since 1913, the Fed has been doing its best to destroy America, by controlling money. Starting with the depression in 1929, the Feds policies have proven to be ineffective.
The process in which the Fed has caused recession is a little complicated. When banks loan money they have no desire to be paid back, they instead look to make money of interest. For example, when a bank loans $20 they look to make that money back plus $10 on interest. Therefore, the larger the loan, the better. Big loan mean lots of money of interest. There is, however, a problem created by the market; big loans are big risks. When banks loan large sums of money they run the risk of the borrower not being able to pay them back and having to 'swallow' their losses. If a bank does this too often, it fails and goes out of buisness. This allows the market to function smoothly. The Fed has destroyed this natural barrier. The Fed promises banks that they will always back up their loans. This causes banks to make large and risky loans, seeking high interest payments. What results is a 'boom' cycle where the economy is growing rapidly. This can be seen in the 'roaring 20's'. However, reckless bank loans have consequences. When borrowers can no longer make their payments, banks refuse to swallow their losses and look to the Fed to bail them out. The Fed does just that by printing billions of new dollars and telling the gov't to raise taxes on the people. What follows is recession, or a 'bust' cycle. This is exactly what happened in '08.
I must digress in order to explain what exactly the Fed does. When the Federal gov't spends more than it has and finds itself in debt, they go to the Fed for a loan. The moment the gov't asks for the loan the Fed creates the money out of thin air and lends it, charging interest. Thats right, the Fed just makes it and then the gov't spends it. This seems great but unfortuantely the result is huge inflation. Inflation is why prices seem so high. In reality your money is just worth less. This is a dangerous trend, since it allows the gov't to have no spending cap and inflation kills the economy.
Foreign Conflict
I have had the least to say on this issue, simply because it is harder to gauge. Unlike economics which is mathmatical and can be easily seen and reported, foreign policy deals with human emotion and is difficult to gauge. Having said that, some things can be seen easily. What is the most obvious is that the world is on the brink of conflict. Countries like North Korea, China, and Iran are powerful and unstable. If they decided to make a move, the consequences could be massive. Technology exists today that people 15 years ago couldnt even imagine. Bombs small enough to fit in brief cases can destroy entire cities. It has been shown that China has been behind numerous technological attacks on our nation. Icluding hacking large companies computer systems. Iran is seeking an EMP that, if detonated, would destroy all of our satellites. Cars, phones, computers, and everything else that uses a satellite with shut off; the effects would be catostrophic.
One of the biggest dangers in this area is our debt to China. If we look back through history to the post WW2 area, we can look at a simliar situation. Soon after the Suiz canal was built, England and France began fighting with Egypt over control of it. The U.S, war-weary, wanted to avoid conflict at all costs. At this time, The U.S owned billions of dollars of English debt. They threatened that if England did not cease fighting with Egypt, they would liquidate Englands debt, causing the destruction of the English currency. England was forced to back off. Many historians consider this to be the official end of the British Empire. This is the exact power that China has over us today. They can wage economic warfare against us, if they so choose. The only thing keeping them from doing this is the fact that we are funding their growth. When they no longer need us, they could do this.
Big Brother
To me, this is the scariest trend that we are seeing today. Over the years since 9/11, our gov't has ripped our freedom from us in the name of 'security'. This was begun by the Patriot Act. This bill was shoved through in the wake of 9/11, and allowed the gov't to take away the liberty of Americans more than ever before in history. To start with it allowed the gov't to monitor phone calls, emails, and internet use. It also allowed the gov't to take American citizens prisoner without a trial, denying them of their sixth ammendant rights. In edition to the Patriot Act several Executive orders were passed under the Bush administration to rob Americans of their freedom. Including one that allowed anyone who the President considers an 'enemy combatant of the state' to be treated as a war criminal. Also under the Partiot Act, security cameras and other invasive technologies have increased. One example of this technology is OnStar. The service, found in almost all new cars, can see see how fast your car is going and shut it off anytime it wants. Even if the service is not activated!
What I am most fearful of, is that when the nation falls apart and chaos ensues, the result will be martial law. This would mean a ploice state where Constitutional rights are denied, in the name of 'public good'. In a choatic situation, our nation could quickly find itself in a Communist-like state. Don't believe me? Look at what happened after Katrina. The steps have already been taken to do this. The surveillence needed to spy on citizens is already in place. A private army, Blackwater, is slowly moving to towns all across the nation. In fact, we have cocentration camps. They are called FEMA camps and they exist all around our nation. I would encourage you to look up what these FEMA camps are. The steps have been taken, martial law is a real possibility.
What can we do?
I have given a detailed response as to what can be done to prepare for this collapse; it is called: How to Prepare. If you have any questions I would encourage you to look to that. I, however, want to focus on something else right now. If the worst case scenario happens, and everything falls apart and martial law follows; thousands will die. I will fight this until I die, but the fact is that the people might lose. We could find ourselves in a bleak situation, but there is hope. Our hope is found in Jesus Christ. Even if I die, my hope is not found in this world, it is found in Him. If you do not know Him today, seek Him out. Read a Bible and talk to those around you who can help. My email is on this blog so email me your questions and I will get back to you. Time may be running out, turn your lives over to Christ today. To those of you who do know Him, find your peace in Him. Times are about to get very tough, but no gov't can take your faith away from you. We must stand firm in hardship and be a light to this world, even if it costs us everything. Today is the day to give it all up to Him who can save your soul. DO NOT WAIT, tommorow isn't promised.
amen, good post, i just dont understand whats so hard to understand about dont regulate FREE MARKET ECONOMY!! it says it right there "Free" not regulated by the government thats socialism
ReplyDeleteAs much as I agree that the American economic system may not be the best, there MUST be regulation on the economy to a certain extent to let all of us enjoy the pleasures we enjoy every day. A truly free market economy would mean that there are a lot of losers, and that when those businesses tanked, there's no where for them to go: there would be no welfare, or severance, or social security. We would have children working in factories, work conditions wouldn't have to be healthy.
ReplyDeleteThe bottom line is, truly free market economies don't exist for good reason.
Also, I must disagree with your offhand condemnation of the Federal Reserve. Yes, they are out to make money, but so is everyone else in the world. Rather than calling the Federal Reserve out, perhaps you should consider the social mores that guide the Fed.
ReplyDeleteIn conjunction, your condemnation of inflation is equally as ungrounded. An inflation rate is healthy for any growing economy: say 0.5-2%. As long as inflation is controlled, it is not a bad thing. So again, I must urge you to look at what is causing the inflation: reckless and enormous government spending.
Although I agree with you on most of the points, some of your digressions are illogical.
Well let's start with the free market. The truth of the matter is that with a truly free market, there are natural regulations. The market regulates itself. This can be seen through a simple illustration: Imagine two groups of people on a island, one group that mines gold, and another that makes shoes. They determine that one ounce of gold is equal to one freshly made pair of shoes. They begin to trade. Now imagine the gold miners happen upon a stash of gold one day. All of the sudden they have a much greater amount of gold then the cobblers have shoes. The miners become the 'winners' and the cobblers become the 'losers', right? At this point the American gov't comes rushing in a says that the miners are thieves and need to be heavily taxed to even the system out. A free market economy, however, has a different solution. When the cobblers see that the money supply has increased they simply raise their prices and the balance is restored. The market regulated itself.
ReplyDeleteTo your point about welfare and social security, I believe they should be eliminated. Social Security is socialism. The gov't steals your money and tells you how to use it. Not to mention it was created during the depression as a temporary thing. Welfare holds people down, and makes them dependent on the system. What should happen is the money gets put back in the hands of the people who give it to those in need. Welfare is NOT the job of the gov't
Now I will adress the Fed comment. The fundamental flaw in your comment is that the Fed should not be out to make money, they should be seeking to manage the nations economy. Furthermore, they have 'cheated the game', so to speak, by tampering with other peoples money and creating money out of thin air. Yes all buisnesses are out to make money, but the Fed is not a buisness and no other business has the power they have.
ReplyDeleteWith regards to inflation, you are partially correct. As the economy grows, there is a need for a gradual increase in the money supply. However, this is not what is happening. Inflation has skyrocketted in the last 10 years, as the Fed has "opened its window" and printed more and more money to combat recession.