During the recent debt ceiling debate in the United States, I couldn't help but wonder whether Americans have a clue what their government is doing. The debate centers around raising the debt ceiling. The debt ceiling is the limit on how much the United States can borrow. Raising the debt ceiling actuality means that the Fed simply creates more dollars out of thin air. There is now more money chasing the same amount of goods and services, which leads to rising prices. Prices rise because every additional dollar that is created lowers the value of every dollar currently in existence, which is why we pay more for everything. This is bad for older Americans, the poor, and those who have saved and invested. And it is bad for every investor worldwide who is holding dollar-denominated investments.
That is why Libya, for example, refuses to accept dollars anymore in payment for their oil, and is the real reason the U.S. entered that conflict. Our government has been hijacked by special interests like Big Oil. Our foreign policy is dictated by Big Business and special interests.
Every extra dollar placed into the system erodes the vale of every dollar currently exiting. The idea is that this extra money will stimulate the economy, but the economy is not responding. So what is next?
A further round of money creation by the Fed is being talked about, but this is just a band-aid on a ruptured artery. The recent debt agreement created a so-called "Super Congress," a panel of 12 Republicans and Democrats who will make decisions for the Congress on monetary matters. This is unconstitutional, for it allows an elite group of 12, instead of the entire Congress, to make decisions in secret about Congresses responsibility on the budget. More tyranny.
The United States is headed ultimately for default or an economic collapse, if present trends continue.
So what can we do?
1) We can stop looking for answers in Washington D.C. That place is corrupted, and the Congress now resembles a rubber stamp for the banks and Big Oil.
2) Connect with people in your community. Create a thriving local community, which will help to shield us from the insanities of federal policies and breakneck spending.
3) When you vote, vote independent, not Democrat or Republican. I always vote for Ron Paul even though he is a Republican. But Paul gets it. So does Dennis Kuchinich, Democrat from Ohio. But these are two are exceptions. If we want change we have to vote change. Let's change the status-quo in Congress!