Wednesday, April 04, 2007

It's The Economy, Stupid

While the mainstream media focuses on politics, scandals, Scooter Libby and the war in Iraq, behind the scenes the very fabric and foundation of our country is being destroyed. The Wizard of Oz motif has been overused, but really, when you pull back the curtain you see that idiots are running the show.

Politics is a subset of economics. In other words, politics is itself about securing privileges for various competing factions. It doesn't matter if the government is a group of village elders in the rain forest of Brazil, or the government in Washington. Government exists to organize and protect the vested interest. When a transportation bill is passed, for example, perks are written in for companies that have contributed to the campaigns of the elected officials who serve on the committee. Those perks involve contracts for road and bridge building and repair, for example. That's about MONEY. If you have money you can influence people.

The United States became the most powerful military force in the world because we had the strongest economy. But that is no longer the case. The United States is bankrupt..
If you read my Federal Reserve post, you understand that since 1973, when the U.S. went off the silver standard, our money has been created out of thin air. The dollar has been inflated to the point where there are now, according to World Reports Limited (Christopher Story) over 1 quadrillion US dollars floating around in the international derivatives market. That's 1,000 trillion dollars, folks. And that doesn't include our annual balance of payments deficit and our government's deficit spending!

Where do you think the government gets the money to fight the war in Iraq, for example? Well, the U.S. Congress authorizes expenditure and the Federal Reserve creates the money out of nothing, thus inflating our currency (and destroying its purchasing power) every time a dollar is appropriated that does not come from revenues (taxes, fees, etc).

"But this is insane!" you say. "How can politicians get away with that?"

Well, it's pretty easy: YOU ELECTED THEM. Yeah, these guys are assholes. But we put them into office.

Once you get used to the idea that you can create money out of nothing, it becomes addicting. Most of our Congress people are well meaning, but they simply do not understand (or ignore) economics! The current Administration is more interested in establishing some kind of religious Christian state, and attacking unbelievers in some kind of fucked–up Third Millennium Crusade, than it is in keeping our economy strong.

Fiat money has, quite simply, created a disconnect between economics and politics. Politics and religious fervor is seen as morally superior to economics and a sound currency, which probably stems from a Biblical belief that money is the source of all evil. Well guess what morons, natural laws are superior to man–made laws. You can legislate all the wars and perks you want, but if you ignore the laws of supply and demand, you are screwed. And that's exactly what is happening today. The United States, and the world economy, is on the brink of economic collapse. If the US dollar becomes worthless, our trading partners will no longer accept it as payment for goods and services. This will lead to a devaluation, similar to what happened in the Soviet Union after it collapsed. The Russians took a zero or two off the ruble, and their economy has still not recovered.

For example, it costs the Fed a few dollars to print up a note for $3 billion. That piece of paper magically assumes a value of 3 billion when it is sold to one of our trading partners; the Chinese, for example. How does that piece of paper magically assume a value of $3 billion? How does the US get away with that? Well, mainly because we are living on our rep. The dollar used to be as good as gold, and even when our currency became fiat, it was still backed by the full faith and confidence of the US government (which means the productivity of the US economy). When our economy was the most productive in the world, that was no problem. But it's not anymore. The dollar has been inflated and debased out of all proportion, and people around the world are getting worried. No one wants the US dollar to collapse because everybody holds US dollars! It's like the old saying "If you owe me $100 I've got you by the balls. But if you owe me $100,000, you've got me by the balls!" This statement just expresses the idea that when someone owes you a ton of money, you have no way to make them pay you so you'd better be nice to them.

All I'm saying is that we'd better get a grip. We'd better understand that politics is dependent upon economics. We'd better get our financial house in order. It's still not too late. The people we vote into office (Democrats and Republicans) have failed, however. It's that simple. These people have abandoned their responsibilities to a strong currency and a sound economy. We can no longer afford to keep voting for the people who are ruining our great country.

What can you do?

Vote independent. STOP voting for IDIOT Democrats and Republicans, UNLESS you are SURE of their integrity. IF WE DON'T CHANGE WHO WE VOTE FOR, THEY WON'T CHANGE.

Join Downsize D.C., an organization dedicated to bringing back sanity and responsibility in Washington.

Go to my website and check out some of the free articles. The real problem is a disconnect between the spiritual and the material. When you think you are a piece of meat, when you believe that when you die you're dead, you do all sorts of stupid things. That's because you do not know who you are. I guarantee you that the mischief makers on our planet are ALWAYS those people who do not understand their spiritual nature. Despite the religious hypocrisy that comes out of their mouths.


Copyright © 2007 Kenneth James Michael MacLean
The Big Picture

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