The Challenge Being Drowned Out By Noise

Flopping Aces ^ | 07-20-12 | James Raider

[Starman417]

As we watch the battle for the Presidency get thrown into the gutter by a President unable to lead the Nation out of its disastrous stagnation, 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.

[alexander_busek]

Well written!

I am a complete layman with regards to economics, but is it not paradoxical that the most advantageous behavior (in view of this situation) for private citizens is to join the ranks of the debtors and/or to take on still more debt? In other words: Won't the thrifty be the ones most hurt when the time comes to "pay the piper" and the "house of cards" comes tumbling down - i.e. when rampant inflation and/or currency devaluation is the only way out of this situation?

Regards,