Don’t Underestimate the situation, the United States is destined to fall

If this succeeds in doing anything, it will be only to delay the collapse of the currency and our government’s ability to fund its programs and departments.

We should let it fail but, we won’t until it is forced upon us. As Von Mises stated, you either voluntarily end the credit expansion and reform out of the pain that comes from it or delay until it collapses under its own weight.

That is why Pres. Obama has a stacked deck to deal with. He can have the best team, the best intentions the best plan but, we will still collapse at some point and delaying it will make it worse.

Yet, the deck is stacked because Congress and the voters would want him impeached if he didn’t try to delay it. There are enough fools out there that are still saying we can avoid the collapse that voters will believe them. And, since the alternative is so painful, why not clutch and blade of grass as you slide off the cliff.

I don’t care whether you love or hate President Obama. This is something that has been building for decades and no President from either main party or any 3rd party or any independent can stop what has to happen to end the credit expansion. How bad is it? That is a question Karl Denninger asks

quote:
And how much are we talking about here?

“Total Fed lending topped $2 trillion for the first time last week and has risen by 140 percent, or $1.172 trillion, in the seven weeks since Fed governors relaxed the collateral standards on Sept. 14. The difference includes a $788 billion increase in loans to banks through the Fed and $474 billion in other lending, mostly through the central bank’s purchase of Fannie Mae and Freddie Mac bonds. ”

We have an agency that has a federal charter and operates at the pleasure of Congress, and a branch of the executive, both of which made promises to Congress (and the American People) in the management of near $3 trillion dollars - or 1/5th, roughly, of the US GDP, and equivalent to the size of the entire federal budget ($3 trillion), yet exactly none of this has been fully disclosed, there are gifts being handed out all over the place, and some Congressmen have concluded that at least some of the actions taken thus far have been and are against the law.
http://market-ticker.denninger.net/archives/653-Now-THATs-Revolting-Or-Should-Be.html

After reading the blatant fraud and manipulation that really isn’t trying to be hid, I had to ask, what is so bad that they will openly do the things they are doing, knowing full well, how upset some in Congress and the nation will be.

Is it that what is hidden so much worse than what they are doing openly that we have FDR’s warning coming to bear? “We have nothing to fear but fear itself.” What would be so “fearful” they do this to hide?

This is a final move, if not something really terrifying being hidden, to a global financial system. There are calls now for global taxes, a global currency, and more power going to the IMF and other international organizations because the say, “this is a global crisis.”

What is socialism? It isn’t having social programs. We had those from the beginning of the nation, esp. in education.

Socialsim: any of various theories or systems of the ownership and operation of the means of production and distribution by society or the community rather than by private individuals, with all members of society or the community sharing in the work and the products.

As the government and global community buy more and more of the financial system we move more and more toward the socialist system of government ownership. We even have some calling for government to buy mortgages and let people stay in their homes. We have the government that will in a sense “own” the auto companies they bail out as they will not just lend money but, impose the will of the government on the companies and make a “profit” they hope on the businesses they bailout.

Selective nationalization” runs the risk of growing to include more and more as this recession grows and it will grow for a long time until consumers have saved and/or paid down enough debt to feel like spending again.

Why is it that so many people are willing to allow this to go on instead of let the businesses fail that would fail? Because they, like those in 1929, aren’t prepared for a long period where they would have to live off their savings. Just like the credit bubble in the 20’s, we have used debt carelessly as people, cities, states, corporations, and a nation and aren’t prepared for a slowdown and business failures.

Right now, China has reserves that will allow them to stimulate with a $568 billion spending package and yet, would still have a positive credit balance (if you believe their books). The point is that a nation, whether it is the individuals, cities, states, corporations, pension funds, trust funds, that are abusing debt or sound money management, can’t do what a nation with sound money management and debt control can do when things get tough.

The U.S. has to start over. That means either defaulting on the debt they can never again hope to pay off, or hyper-inflate out of it. Either way, millions and millions of people will lose everything. The senior with $200,000 in government bonds will see them worthless and even more than that won’t buy a month’s worth of basic needs.

OR, we become a welfare recipient of the global system they are creating and under a new global currency given loans to tide us over until we regain our footing. But, that too will destroy the wealth of many who have the wrong investments.

So, we delay as long as possible because while there are probably several other possibilities, delay or not, they will all be very painful.

If somebody can come up with something other than rebuilding out of a collapse, I am all for hearing it. I am sure many in Congress would love to hear it too, or they would say, as Karl says in his article

quote:
But several aides said they were still torn between their belief that the change is illegal and fear of further destabilizing the economy.

“None of us wants to be blamed for ruining these mergers and creating a new Great Depression,” one said. ”
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Think of that! Don’t want to risk the Great Depression by doing what should be done?

Related Posts:

• Politics, shaky economy create no rush to restructure Fannie and Freddie
• Outrage & OMG NEWS: “US promises unlimited financial assistance to Fannie Mae, Freddie Mac ”
• It’s difficult to have optimism when the U.S. is piling on insurmountable debt.
• Smoke and Mirrors! Bernanke and Geithner are destroying the purchasing power of the US Dollar!
• QUESTIONS THE SENATE NEEDS TO BE ASKING BERNANKE:

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