The Financial Crisis Can be Understood if You Are Prepared to Face Some Hard Truths and if You Accept That the U.S. Financial System is Run by Evil Men.
Yes, there is a financial crisis in the U.S., and it is a financial crisis of incredible proportions.
By the end of 2008 the U.S. private and public sectors jointly owed an estimated $117 trillion dollars.
This is larger than the GDP of the U.S. by one thousand percent.
A small percentage of this, about $12 trillion, is owed to foreign entities.
The rest is owed primarily to the Federal Reserve Bank through a variety of channels.
The U.S. government has also plundered funds including pension, medical, and social security funds, to which it now owes trillions of dollars.
This massive debt explosion, which had been building for over a decade, is the root of the financial crisis because there is no hope of it ever being repaid.
All talks of bailouts and stimulus packages is so much hot air, just throwing non-existent wealth after non-existent wealth.
The U.S. economy, and the fabled wealth of the U.S., is built on a false premise, and this premise has led to the financial crisis that has beset the U.S.
The false premise on which the U.S. economy is based, and has been based since 1913, is called the U.S. dollar.
Take out a dollar bill and examine it. What does it say on the banknote? It says that it is a dollar note and that is belongs to the Federal Reserve Bank.
Does it say what it is worth? Yes, it certainly does! It says it is worth a dollar.
But you knew that. A dollar is worth a dollar is worth a dollar… And what is a dollar?
Well, it’s anything you want it to be. It can be worth a couple of bananas, for example, or a whole bunch of bananas if the bananas are overripe.
Apart from stuff you buy with a dollar, what is it worth?
Well, you can always get another dollar for it…. The point here is that a dollar has no intrinsic value. You might say it doesn’t matter.
That is what the Federal Reserve Bank has wanted you to believe, and the American People have fallen for it.
They think it’s okay that their money is worthless. No wonder we have landed ourselves in the financial crisis.
Did you know that money used to have intrinsic value?
In the old days when merchants traded in bags of silver, gold, etc., banknotes were created for the merchants to swap instead of carrying around bags of unwrought metals, and these banknotes were redeemable at a central depository for the underlying asset, whether it was a piece of silver or a pound of gold or whatever.
And coins were made out of the metals themselves for easy swapping.
So the coins and banknotes were worth something in and of themselves.
What Led to the Financial Crisis?
U.S. Recently Had Currency that was Worth Something
The last time there was U.S. currency that was worth anything was in 1963.
President John F. Kennedy issued Executive Order 11110 ordering the Treasury to print Silver and Gold Certificates that were redeemable for the metals.
A few months later JFK was assassinated and the certificates were swiftly removed from circulation.
The Federal Reserve Bank was created in 1913 and it quickly engineered the Great Depression.
This gave the owners of the Fed (did you know that it is privately owned?) the opportunity to tell the government that currency that was redeemable was a bad thing.
The reason it was a bad thing is that when the Depression started, people began redeeming their dollars for gold.
So the government listened to the Fed, and the Fed moved closer to its goal of a worthless currency.
How the U.S. Got a Worthless Currency
In 1933 President Franklin D. Roosevelt finally outlawed the private ownership of gold (called hoarding) by U.S. citizens.
Up until then, the United States had been on the gold standard.
In fact, many dollar bills were printed with yellow backs which indicated they could be turned in for the gold rate.
The ban was not lifted until legislation was signed in 1974 by President Gerald Ford, and then it was just so people could invest in gold as collectors and small investors.
In 1971 President Richard Nixon, urged on by the Fed, delivered the coup de grace.
He announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard for foreign exchange.
The dollar was now entirely worthless worldwide, and the scene was set for the financial crisis we are experiencing now.
Good News About the Financial Crisis
The great thing about the current financial crisis is that because dollars are worthless it would be okay to flush them down the toilet.
All that would have to happen would be to declare them illegal currency and replace them with a currency worth something that citizens could swap for dollars with intrinsic value for a certain period of time and at a certain rate.
It might mean that 1c of the new currency would cost you $100, but so what? At least your dollar would be worth something.
The question is: where would the gold or other precious substance come from on which to base the new dollars?