Friday, August 10, 2007

The Federal Reserve's financial meltdown

Another wonderful article by Jacob Hornberger:

Ominous Financial Times Ahead
by Jacob G. Hornberger

The out-of-control federal spending to finance President Bush’s imperial adventuring in Iraq might be showing signs of an ominous economic crisis ahead.

As I have been warning for years, the massive federal spending binge that U.S. officials have undertaken, especially since 9/11, would ultimately bring a crashing dollar. As most everyone knows, that is exactly what has been happening to the dollar in the international arena.

But yesterday, the financial situation got a bit more ominous. Fears arising from the U.S. home-loan crisis spread to Europe where both the European Central Bank and the U.S. Federal Reserve had to inject billions of dollars into the European financial system to keep it liquid.

If more funds are necessary to keep the financial system liquid (thereby discouraging runs on banks), then what is all that new, “free” money being injected into the financial system going to do to the value of the dollar? You got it — a bigger dollar crash is looming on the horizon as well.

We can add the federal dollar crisis to the crises in Social Security, Medicare, terrorism, drug war, Iraq, education, immigration, and just about everything else the feds have touched with their programs and interventions.

As I have written before, thanks to the federal government — or federal god as many American statists choose to perceive it — Americans just might be facing a perfect storm of crises, all of which are rooted in federal socialism, interventionism, and empire-building.

Meanwhile, the federals continue spending money as if there were no tomorrow, especially on their imperial adventure in Iraq. Oh well, if Americans do end up experiencing a deep financial and economic crisis, at least they’ll have the solace of knowing that their federal rulers are “rebuilding” Iraq, after destroying it of course.

Mr. Hornberger is founder and president of The Future of Freedom Foundation.

It's a no-brainer. If a country's government spends and doesn't tax (i.e., it borrows, or prints the money), the deficit will rise, or inflation consumes. If a country's government spends and tax to pay for it, the people will be poorer. Either way, it is not good for the people. The only way to benefit the people is to STOP SPENDING! Only Ron Paul will limit spending (i.e., bring the troops home, for starters), and thus, will not tax, and, at the same time, will make a balanced budget, and will end the Federal Reserve's monopoly over money, and will bring money backed by precious metal to America, like we did before 1913. Only Paul will do this for us.


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