Sadly, no serious action from Washington will be applied to the national debt, the deficit, or the international banking system heading for a major crash.
For well over one generation, America’s and the world’s middle class has been primed and pumped by financial institutions to borrow. The majority was persuaded to incur debt because debt was good. Debt fed the system and placed you in a home. Debt filled that home with appliances and furniture suitable to your preference and taste. Debt placed you in an automobile, and placed you in a boat. Debt had to be good. Wasn’t it the capitalist way? Wasn’t this the road to economic growth? The banks said so.
No. Absolutely not. This level of debt is not the capitalist way. It is not the road to economic growth. It is not the path to economic independence and sovereignty. Some debt can be stimulative to growth. The out-of-control debt we are now saddled with, is not. It has been a deceptive illusion. It has been a beguiling fraud. Savings? What savings? This beautifully executed but virulent elevation of debt to the dizzying heights of the economic firmament by banks has harmed savers and pushed them into risky and treacherous waters - right into the arms of brokerages which were also owned by the banks.
Load yourself up with debt - you can afford it. You have nothing to worry about, we’ll keep the interest rates low. Your dollar or pound or franc is dropping in value, and your earning power is sliding, but you won’t notice, because as far as you’re concerned, you’re doing fine. The new home you think you own tells you so, and aren’t you on your way to purchase the latest flat-screen-digital TV?
The mindset on main street toward personal debt, affected and infected the attitude toward debt in government. For too many years our politicians at all levels accepted the mantra - “what magic this debt business is, I can buy votes and support wherever and whenever I need them.”
Bankers didn’t care who was in office or what ideology they promoted. They still don’t. Couldn’t care less. The higher the office being sought, the more money the campaign needs. Who’s the weaker person running? Who has no understanding of anything remotely related to anything economic? Who understands nothing of the the critical elements governing finance, business and money? That’s what they really concerned themselves with. The weaker the politician, and the more ignorant, the better for bankers, particularly as it came to the most important office in the land. Ideology be damned. Why?
Bankers may appear to be based in New York or London or Zurich. Not true. Their game has no borders
, and they control a licensed cartel. The best part of the monster they have created is that their frauds hold no consequences. Keep in mind, these bankers control debts worth Hundreds of Trillions of Dollars - not billions, trillions
We are fast moving in the middle of a hurricane propelling us toward a world fiscal authority with no borders. Europe is the initial maelstrom where complete integration and absolute loss of national sovereignty will be effectively and surreptitiously implemented, with North America to follow, and the seduction of king dollar used as the convincing bait.
Loss of sovereignty will mean that someone not of your choosing or election, will dictate how you conduct yourself. Greeks have been maligned by all banks, central and national, and by the MSM parroting their message. What? Greece borrowed too much? Really? Borrowing like a marriage, takes at least two parties agreeing to the financial transaction. Bankers knew what they were doing better than did their prey. They were running hell-bent-for-leather to convert as many countries as possible into overwhelmed debtor nations. Already the same is being written of Spain, Italy, France, and other Eurozone countries - structural concerns, worsening deficits etc. And England? It’s economy has become principally dependent on banking. England is a lost cause and it will push to strengthen whatever demands satisfy bankers.
Mariano Rajoy, the Spanish Prime Minister, recently said “The European Union needs to reinforce its architecture. This entails moving towards more integration, transferring more sovereignty, especially in the fiscal field. And this means a compromise to create a new European fiscal authority which would guide the fiscal policy in the eurozone, harmonize the fiscal policy of member states and enable a centralized control of finances.”
He is simply voicing the attitude and inclination of more powerful insiders who control the most critical strings of all.
The European Commission makes its demands and countries cower in fear. Just imagine a banker from somewhere in the netherlands levitating in the middle of the Atlantic, telling America, “your austerity measures aren’t enough and we don’t care that you have over 20% unemployment.”
And yet the trend is, discouragingly, heading in that direction.
Amidst all this uncertainty which everyone hopes someone else understands and will do something about, we have Ben Bernanke announcing a non-announcement that he just might unleash QE3 on America. On that vacuous expectation we will see the markets buoyed, possibly with Greenspan type “irrational exuberance.”
What might come as a mid-term follow-on might just be a market implosion worse than we witnessed four years ago. This time, the shorts won’t be there to provide a floor and support. The big shorts have been scared and expunged right out of the system by such measures as government intervention on cave-ins which we have come to know and puzzle about called “bailouts.” Uncertainty is dangerous.
The world’s debt crisis is looming as America faces what may well prove to be the most significant Presidential election in generations. America must elect an individual who has understood economics, business, trade and entrepreneurialism. America must elect someone not from Wall Street and not a banker, but someone who understands them because they will have to be brought to heel and punished for their frauds. A different relationship to fiat money will have to be considered. Above all other considerations, America must bring creative energies to putting its workforce back to work. America is offered in Mitt Romney the only candidate who has a chance of filling the Oval Office with such capacities.