There's an article in Business Insider entitled REMEMBER: In 1930, They Didn't Know It Was "The Great Depression" Yet. Prior to World War 1 that war was referred to as "The Great War" and ironicly the "War to End all Wars". Since the 1940's
the period between late 1929-1940 has been called "The Great Depression" here in America and every economic downturn experienced since then is always
measured by it for comparison. In each case, the recessions of the 60's, 70's and 80's all pailed in comparison to the great depression in severity,
length and the real world suffering each caused.
It may not be until beyond the year 2020 that this period in time not only is recognized for what it is but also forever changes the name of the great
depression to the first depression. Today we find ourselves in a very similiar place to where we were in the Spring of 1930. The economic and
stock market crash of 2009 are seemingly behind us as we are assured by our politicians and the news media that economic recovery is underway
and the causes of the crash have been dealt with. The same story was being told by President Hoover and the New York Times in 1930. There had been
crashes and recessions before and people expected things would return to normal in due time.
Back then, like today there were numerous warning signs that all was not well and in fact the worse was yet to come. What we have done in the last
year to deal with our current financial crisis is almost exactly what was done 80 years earlier.
Think of a ship that finds itself unexpectedly caught in a hurricane. Rather than dealing with the storm we have decided to speed toward its
center following along in its path until we safely reach the storm's eye. Right now we are cruising along in the eye of a growing storm and
the captain of the ship is telling us that the worst of the storm is behind us. The truth is, the worst of the storm is all around us and continuing
to grow stronger and the path we are on is taking us towards landfall were we will be forced to deal with the full force of the now monster storm.
The storm we face is debt. Personal debt has been pushed back on to the banks. The banks have pushed that debt up to the Federal Reserve. The state
and local governments are pushing their debt up to the federal government. In Europe, the smaller countries are pushing their debt up to the
wealthier countries who are in turn pushing some of that up to the IMF. Governments worldwide are competing for the wealth of the world, desperately
trying to finance the promises they made that they knew they could not fulfill. This is a world wide pyramid scheme orchestrated by the academic
socialist elites who always believe that even though it has been tried and failed repeatedly this time they can get it right.
Pyramid schemes or ponzi schemes like the one put together by Bernie Madoff always end the same way. While they are working the ponzi scheme appears
to be a successful business model with people making profits that are a step above everyone else. Over time, people may from time to time warn that
something does not seem right but they are written off or ignored all together by the those earning the robust profits.
Then one day the unthinkable happens. Someone trys to withdraw their money only to be told their is a problem and their is no money to withdraw.
Once the armor is cracked it rapidly begins to fall apart. Greece was the start of the unthinkable, the crack in the armor of the global socialist
ponzi scheme. Like any smart person running a ponzi scheme they have tried to make this seem like an isolated incident and ensure people the that
system is fundamentally sound. They need more people to put even more money into the system in order for it to run a little while longer. They need
the time and money to maintain the illusion of normalcy while they hide and protect the money they will live off of once the entire system
comes crashing down. The elites are insulating themselves from the world wide struggle for resources that is coming once the world realizes
that the money they have poured into this system has literally vanished into thin air.
The question must be asked, where has all the money gone? It used to be that government spending went primarly towards the creation
of tangible assets like roads, bridges, space technology and military machines. Since the creation of the great society by FDR in the 1930s
an ever increasing proportion of the governments spending has gone to entitlements like Social Security, Medicare and Federal Pensions. The
government has increasingly become a charitable organziation instead of the infrastructure binding the states. The money being paid in taxes
is now being spent rather than invested by the government.
This is such a simple concept to understand. Think of your own home and your own finances. Most people agree that it is okay to borrow money
to invest in the value of your home like upgrading a kitchen or bathroom or putting on a new roof. Borrowing money to pay your electric bill, your
phone bill or your Netflix subscription will eventually result in not being able to borrow more money when a real problem needs to be fixed. We now
need to borrow enormous amounts of money just to pay for the basic services we have promised to the people. The entire world with a few exceptions
have fallen into the same trap. What we are seeing now is as world begins to run out of money the nations with lowest credit ratings are unable
to borrow what they need to fund their promised services.
Incredibly, the nations that are the leading funders of the Internation Monetary Fund (IMF) are proposing to have the wealthier
nations guarantee loans to lower rated nations like Greece so they can continue to function. Essentially they are asking their citizens to loan
them money so they can loan it to Greece or Portugal or Spain even though they know those nations have no chance of ever repaying those loans.
Remember the mortgage crisis that occurred way back in 2008. Remember how Fannie Mae and Freddy Mac told banks to lend money to people who
did not have the income or the credit required to justify those loans. Do you remember how that worked out. Do you know that Fannie and Freddie are
still being given between 6-7 billion a month in bailouts to pay for all the bad loans they guaranteed. That is exactly what the IMF is doing now
with the debts of nations.
The reason businesses can't grow and unemployment continues to rise is that world governments are sucking up the worlds wealth to fund
their entitlements. Their is no money to be lent in the private sector. As the debt grows and interest rates rise they will need to borrow
even more money further crowding out the needs of private investors. The only questions left to be answered are how long will the system last
before the collapse and what will we transform into when the crash is over. Will it be an American revolution that restores individual
rights and freedom or a French revolution ending in bloodshed and tyranny?