Essentially A Ponzi Scheme Enabled By The Fed, Itself…

[Richard Allan Jenni]

The debt ceiling debate may not have the sleaze-appeal of the Casey Anthony trial, but surely it will dominate the news for the next few days- and rightly so. As the faltering US economy teeters on the brink of a second Great Depression (assuming we haven’t already toppled into the abyss), this may well be the final opportunity for Congress to repent of their profligate deficit-spending and avert an unparalleled American economic catastrophe.

As some have suggested, Obama will surely find a way to blame the Republicans, especially the Taxed-Enough-Already component, if the federal government is pushed into default.

But here is Obama’s predicament in a nutshell. He wants Congress to sufficiently raise the debt ceiling to get him through the next election- and the proposed six month plan to “modestly” raise the debt ceiling while only moderately curbing spending would most certainly engender yet another “three-ring circus” (as Obama called the present debate last night) right in the middle of his 2012 Presidential campaign. Horrors! We can’t have that, can we, Barry?

Like the housing bubble that was inflated with the hot air of easy money (irresponsible low-interest lending), the over-inflated debt bubble is a Ponzi scheme of sorts- but instead of promises to investors, we have made economic commitments through a mind-boggling array of domestic entitlement programs (including pork and abuse of Social Security) designed only to help the Washington politicians “win friends and influence people.” 

When an individual tries to buy friends with money, those friends will only remain faithful until the money runs out. Moreover, the foolish practice of buying friends and influence usually ends with a fool’s financial ruin. In the longstanding practice by our Washington bureaucrats of gaining power and influence through profligate spending, however, they would prefer that American taxpayers end up holding the odiferous bag- not the self-serving politicians themselves or the private interests of the Federal Reserve.

Notice the rising prices on your last trip to the supermarket? Applied for a mortgage lately? Yer eyes pop when ya filled up yer soccer-wagon tank with gasoline? Yer home a little lighter in value these days? Sending your children to college now a pipedream? Credit cards maxed out? Underemployed? Unemployed? Looks to me like the debt bubble may have already busted…

Obama’s political strength (his waning ability to retain a slim balance of domestic political power) lies in that segment of American society which benefits from myriad entitlement programs yet pays no appreciable taxes. If the money runs out, they will no longer follow their Kenyan pied piper.

Moreover, the modus operandi of Barry’s failed foreign policy has been to use (waste?) your tax money to promote his own interests- which are rarely your interests. For example, Barry apparently unilaterally attacked Libya to strengthen his ties with the Muslim Brotherhood- and also appease the international banking cartel by thwarting Kadhafi’s plan to replace the Federal Reserve’s fiat currency in the African marketplace with gold Dinars.

And speaking of the Fed, perhaps I should remind you that most of our debt is held by private interests within the Federal Reserve. Since the Federal Reserve Act of 1913, the Fed essentially has created money at almost zero cost (whatever the Fed pays the treasury to print their Federal Reserve Notes) and then lent that bogus money to the American taxpayer at interest. With the advent of electronic ledgers, however, the Fed now also creates those fiat dollars literally out of thin air with electronic deposits from the top. The federal government issues bonds like you might use your credit cards to cover a budgetary shortfall, and most of those bonds are snapped up by the Fed- which in turn provides the government with more of their funny money. Pretty good hustle, eh?

Again I remind you that we are on the verge of second Great Depression. The first Great Depression came on the heels of economic speculation following WWI. Well, it took a little longer this time for unbridled greed dripping with speculation to grimly reap its toll, but Great Depression II is about to follow WWII- as scheduled by the international banking cartel.

My view on all this? The bottom line? Don’t prolong the agony. It should be readily apparent to every American taxpayer that neither Congress nor the White House will cease to abuse us, unless Speaker Boehner pulls the plug. In other words, don’t raise the debt ceiling- and yes, permanently default on what we owe the Fed. Congress will finally have to mend their profligate ways. The primary “victim” will be the Fed, which holds most of our debt- essentially through a Ponzi scheme enabled by the Federal Reserve itself.

-- 
Richard Allan Jenni

Ocean City, New Jersey
Real Conservatives

[Richard Allan Jenni]

[Your Uncle Sam]

[Sandra]

Good read Allan! Yes, it seems they have caved or are about to sell us all out. The USA's credit rating will be lowered and prices will start rising more.  The garbage they are suggesting solves nothing. The Gold Dinar may yet end up  being the currency of some. IMO we are already in a depression of some degree. This debit crap will make it bottom out in us, it is just a matter of when. People need to be ready to help other people and we all should be trying to stock some extra food if we can afford it. Again, thanks for a good article...

[Richard Allan Jenni]

[Richard Allan Jenni]

From Vivian:

Catching Wild Pigs  A chemistry professor in a large college had some exchange students in the class. One day while the class was in the lab the Professor noticed one young man (exchange student) who kept rubbing his back, and stretching as if his back hurt.  The professor asked the young man what was the matter. The student told him he had a bullet lodged in his back. He had been shot while fighting communists in his native country who were trying to overthrow his country's government and install a new communist government.  In the midst of his story he looked at the professor and asked a strange question. He asked, 'Do you know how to catch wild pigs?'  The professor thought it was a joke and asked for the punch line. The young man said this was no joke. 'You catch wild pigs by finding a suitable place in the woods and putting corn on the ground. The pigs find it and begin to come everyday to eat the free corn. When they are used to coming every day, you put a fence down one side of the place where they are used to coming. When they get used to the fence, they begin to eat the corn again and you put up another side of the fence. They get used to that and start to eat again. You continue until you have all four sides of the fence up with a gate in the last side. The pigs, who are used to the free corn, start to come through the gate to eat, you slam the gate on them and catch the whole herd.  Suddenly the wild pigs have lost their freedom. They run around and around inside the fence, but they are caught. Soon they go back to eating the free corn. They are so used to it that they have forgotten how to forage in the woods for themselves, so they accept their captivity.  The young man then told the professor that is exactly what he sees happening to America . The government keeps pushing us toward socialism and keeps spreading the free corn out in the form of programs such as supplemental income, tax credit for unearned income, tobacco subsidies, dairy subsidies, payments not to plant crops (CRP), welfare, medicine, drugs, etc. While we continually lose our freedoms -- just a little at a time.  One should always remember: There is no such thing as a free lunch! Someone has to pay for it and that someone is YOU - THE TAXPAYER.  Also, a politician will never provide a service for you cheaper than you can do it yourself.  Also, if you see that all of this wonderful government 'help' is a problem confronting the future of democracy in America, you might want to send this on to your friends. If you think the free ride is essential to your way of life then you will probably delete this email, but God help you when the gate slams shut!  Keep your eyes on the newly elected politicians who are about to slam the gate on America .

[Your Uncle Sam]

Obama decries '3-ring circus' of debt debate