President Obama spoke in Estonia saying that its freedom is as important as Paris or London, referring to WWII. He would bring the US to war to maintain it. This is playing with the fire of war and world destruction.
Putin says that back in time during the Cuban Missile Crisis, the US put forth a doctrine based on its geographic location:sphere of influence. Putin says the Ukraine falls under Russia's sphere of influence.
Sanctions are layered on each other and only the people suffer. You keep pounding rocks together, guess what? You get a spark.
This is the result of the reaction to the actions of the military. They do not have peaceful solutions so all nation's involved can maintain face as the Japanese say.
One does not need to rehash the problems in the Middle East: civil war in Syria, turmoil in Egypt, conflict between Palestine and Israel and unrest in Turkey, et al. There are many other ingredients that could burn, and not all lead to war, but all cause destruction one way or another.
James Richards
enters a new worry in his new book, The Death of Money. In it he brings up many aspects of money and debt. He connects dots that is behind the scene news. In my unpublished work, The Evolution of Democracy, I do the same, but my theme establishes that all things are related. A book allows you greater depth and flow of ideas that a blog cannot offer due to space and continuity. Nevertheless, I agree with many of his points and I will mention a few in brief.
Begins With QE
He says the Fed attacked the problem of debt with more debt. After the financial crisis of 2007-8, the Federal Reserve debt sheet has grown three times the rate of our economy. Back in 2008 the Fed's debt-to-assets was 22 to 1. Today, they have recklessly blotted that ratio to 77 to 1. Could anyone, corporation or government pay its bills if its debt was $.77cents out of every dollar it receives? No! Of course not!
He says the Fed is bankrupt, but since the US is the world's reserve currency, it gets away with it.
Yeah, but not everyone is fooled or pleased with the Fed's actions. In Europe the euro has lost over $.10cents and it is below $1.30 in value. This will cause inflation for any imports, but the hope is to export more and gain on the difference. There never is any consideration how this affects the people of Europe because like US citizens, their leaders do not represent their views. By the way a one cent movement in currency values is considered large and this one is already at a dime.
Anyway, back to Jim's story... The Fed spent its money buying US treasuries which kept interest rates low. It had many by-products that were positive with this plan. Individuals and corporations could refinance at lower rates. Foreign entities were able to do the same, but inflation began to creep into their economies and now, they are unhappy. The biggest beneficiary was the US government. At the old rates our country would already be bankrupt, but with low rates our government just rolls over the debt. Our leaders like Bush and Obama claim that our debt is manageable at under 5% of GDP.
Taxpayer
will be left holding the bag if the Fed gets called to the carpet. They have put us all in serious danger.
Our nation may even lose the status of the dollar being the world's reserve currency. I cannot get into that at the moment. If we lose that priviledge, everything will double in price and that is only part of the danger. Oyr leaders know and fear this, but they have a plan.
The Day After
is a plan that basically calls for Marshall Law because civil unrest will follow the explosion of prices and none of us needs that in the morning. There is another plan out there. This one is from the
IMF
They will introduce a new world currency called the SDR(Special Drawing Rights). The One World people are behind this terrible idea. Under it all nations will lose their sovereignty. We will be told what to do by a unknown committee that is not elected by the people. Get this! They will declare it democratic in principle.
These are some of the serious worries that will surface next month when the Fed ends QE. Rates will slowly rise, but at some inflection point, debt will not be able to be repaid because the interest on the already spent debt will be unmanageable. By the way the CBO has changed their tune. They now say that our national deficit will be higher, our economy will grow at a lower rate and tax estimates will be less than previously predicted. This is always the case. There is a blueprint that tells me so...
Japanese Debt
is estimated to be $1,200t-yen($11.6T-US)this year. This is more than the combined GDP of Germany, France, Italy, and UK. Japan needs $23t-yen to finance its debt or the equivalent of 47% of tax revenue to which they pay at .5% interest rate. This sad truth says the Japanese government to its people that inflation will only be .5% or less in ten years. Get real! The BoJ wants the yen to fall in value to 120 to the US dollar from 103 today. This will inflict pain to Japanese citizens, but the government feels that greater exports will produce a gain when added and subtracted. Back to Jim...
He says the movement of money, its velocity is collapsing. For example, you go out to eat. You keep a restaurant in business. You help its employees to pay their bills. However, if you stay home, they will go out of business and delinquent on paying bills. He says the velocity of money is at the same level as the Great Depression in 1929. He further says that people suffer a misery index which today is at 32 and in 1929, it was just 27.
One last scary thought and this concerns the Fed too. Under our exports is a category that says we sold gold. We have been selling gold for many, many years. The Fed will not allow anyone to audit their books because maybe they will find out that the Fed has sold 40% of our gold that is suppose to be in Fort Knox. Also, during this same time period, China has been buying gold and if there is a currency problem, their yuan will be backed with some value unlike our dollar.
I leave you, dear reader with this thought. What is the make-up plan for value under the IMF and its plan that has a new currency? Who is the top dog? Who is low on the totem pole? These outcomes are what happens when you let the fiat Fed change our constitution. The one great strength that the Founding Fathers knew was the importance of a strong currency because it will promote the general welfare and they based ours on gold not paper. End the Fed!
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