This video by Peter Schiff gives a pretty good explanation of the parallels between Greece’s current dilemma and the disaster that will eventually overtake Americans.
Unfortunately, neither Schiff nor anyone else in the financial spotlight is talking about the only real solution, which is to end the debt imperative and the growth imperative by taking usury/interest out of the money system. It needs to be recognized that the entire system of global money, banking, and finance is bankrupt and cannot be sustained. I wrote about that more than twenty years ago in my first book, Money and Debt: A Solution to the Global Crisis which can be downloaded for free.
Bill Bonner is absolutely correct in calling the monetization of debt The Grandest of Larcenies. He points out that, “Rather than honestly repaying what it has borrowed, a government merely prints up extra currency and uses it to pay its loans. The debt is “monetized”…transformed into an increase in the money supply, thereby lowering the purchasing power of everybody’s savings.”
As I argue in my new book, The End of Money and the Future of Civilization, enabling governments to spend more than they take in is half of the purpose of the central banking regime, the other half being to give the banking elite the privilege of charging interest on the people’s own credit.
As Bonner further points out, “Of course, the Fed will not want to do such a dastardly deed; but it will do it anyway.” They are desperate to keep the game going and the only other alternative is to let interest rates rise as government seeks to sell more of its debt to increasingly reluctant lenders abroad.
Government, for its part, must either cut its profligate spending or raise taxes, or both. From the rhetoric coming out of Washington, it is clear that social programs, like Social Security and Medicare, are on the chopping block, but not sacred cows like military spending or bailouts for banks and corporate dinosaurs–the empire must be preserved. Trial balloons for new taxes are now being floated. Is a VAT (value added tax) on the horizon?
As in the Weimar Republic between the World Wars, the politicians and bankers today may decide that hyper-inflation is the least onerous of their available options. The middle-class can say goodbye to their hard-earned savings.
Posted in Finance and Economics, Global Economy
Tagged bailout, banking elite, central banking, debt, hyperinflation, inflation, interest, larceny, middle class, value added tax, Weimar Republic