Sunday, December 21, 2008

Wealthiest Nation on Earth, Built Entirely on Debt

America has long been the envy of the world. The economic giant. The manufacturing, farming, financial center of this planet. Do you ever ask yourself how we became so powerful so fast? Well, it is not all ingenuity and hard work. It is mainly built on debt.

Thomas Jefferson warned of the power that private banks could wield over the citizens. Little did he know that big bankers would be responsible for the growth of private banks into the federal government's financial matters. In 1913, with the help and urging of J.P. Morgan, the Federal Reserve system was created. The words "central bank" were not included anywhere in the charter for fear of a revolt against the idea. In fact, President Taft was not for the system, despite the insistent urging of the powerful bankers. They encouraged Teddy Roosevelt, a backer of the plan, to run against Taft in the Republican primary. He lost. The bankers did not give up and formulated an even better plan. The convinced Teddy to run in the general election against Taft and Woodrow Wilson. This shifted the advantage to Wilson who promised to sign the plan into existence. He followed through in late 1913 and the Federal Reserve was here.

Now you may be thinking that the Fed, as we like to call it today, is an arm of the government. You are mistaken. The Fed is a private group of bankers that use you and the government to rake in insane profits out of thin air. Generally, banks double their assets every ten years. That is an alarming rate and this happens despite economic conditions in the country. In fact, they control the economic conditions of the country. You see, since the dollar has been taken off the gold standard, it has no true value. It is an instrument of value that has no value of its own. It is just paper. This is called fiat money. The Feds print it, we borrow it, then we pay it back to them with interest. They create nothing of real value. "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value." Alan Greenspan way back in 1966.

In 1901, the national debt was $1 billion. Now, that is a big billion. A billion is a thousand million. After World War II, the debt climbed to $25 billion. Ah, but it is just getting revved up. Around 1976, we passed the $630 billion mark. Now we are cooking with gas. But hold on. In the mid 1980's, we passed the $1 trillion mark. A trillion is a thousand billion. By 1990, it was over $2 trillion. How high can this thing grow? In 2003 we reached the $6 trillion level. In 2008, it is estimated that our national debt is just short of $11 trillion. It is growing at a rate of $3.5 billion per day. That is a tab of over $35,000 for every man, woman and child in America. These figures do not include state and local municipality debt either.

Now, let's recap....the Fed is not a government entity yet it sets economic policy and prints money at the request of congress. The dollar is not backed by anything other than a Fed board telling us what it is worth. The Fed controls the economy and Wall Street by restricting or freeing up money and manipulating interest rates. Now, the banks that control all of this and design illegal insurance investment schemes want the people that pay the interest to them to bail them out. Does that sound about right? Someone explain to me what is even keeping this system propped up. Someone please tell me why the entire house of cards will not come tumbling down. Who was it that once said "I love my country, but I fear my government"?

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury, with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship." - Alexander Tyler 1787