Here's what going to happen to the world over the next two years. Most of us will be totally unaware that anything is happening and in many ways life will go on as usual. By the end of the decade though the changes being made will be very obvious even to those who pay the least attention.
In Europe right now the word being thrown around on a daily basis is "bailout". It started with Greece back in the Spring and has now shifted to Ireland. So what exactly is a bailout, why is it necessary and what are the consequences of getting one.
A bailout is essentially a guarantee by a central bank of the debt a country issues. In Europe, the European Central Bank (ECB) has created a fund of up to one trillion dollars to guarantee the debt of any nation that gets in trouble. What happened in Greece is that their government had so much debt compared to the size of their economy that investors started demanding very high interest rates on any new debt. Since much of the Greek debt is very short term it meant that the interest on their existing debt would rapidly rise along with any new debt being issued.
This is like your credit card company slowly raising your interest rate as your card gets closer to your credit limit. This would make your minimum payment grow rapidly eventually forcing you to default on the loan.
What the bailout did for Greece was to effectively lower the interest on Greek debt by having the ECB guarantee their debt. In order for Greece to get the bailout there's a catch, there's always a catch.
The Greeks had to agree to certain terms with the ECB on spending and taxes effectively handing over control of running their country to a bank. Greece is no longer an independent nation, they are under the thumb of the ECB. This is why Ireland is doing all they can to avoid taking a bailout. Once you take the bailout you've sold your soul to the ECB.
The European Union and the United States are similar in some key ways. Each state in the US is essentially an independent nation that uses the one currency of the union which is controlled by our central bank, the Federal Reserve. The Fed is the ECB in America and California is as independent as Ireland.
What most people don't know is that more than 10 states in the US are currently in as much trouble debt wise as the worst countries in Europe. The interest rate on their debt in rising to unsustainable levels and in fact would be past the breaking point if not for the help they are already getting from the federal government.
It will not be long before states like California, Illinois and New York are looking for bailouts from the Fed in the same way Greece and Ireland are from the ECB. If a bailout is given to a state it will come with the same catch as in Europe. These states will become owned by the Fed and no longer be independent.
Here's where it gets crazy. The US, specifically the Federal Reserve is the largest contributor to the ECB through the IMF providing upwards of 20% of their funding. If the states in the US are forced into federal bailouts and the countries in Europe are forced into ECB bailouts we will essentially have a unified US/Europe ruled by the banking cartel of the Fed/ECB. The states and countries will be powerless entities ruled by international bankers. You will be a powerless entity ruled by international bankers.
This is not some what if scenario being presented. Greece has fallen, Ireland is next. Portugal,Spain and Italy will most likely give in 2011. England and France are not far behind. In the US at least ten states will need a bailout before the decade is done. Some may happen much, much sooner.
If you're okay with the idea of unelected international bankers being able to tax and regulate you then this won't matter much. If you believe the constitution is out of date and irrelevant anyway then none of this will bother you. If on the other hand you value your rights and believe in defending the constitution you will find yourself in a very uncomfortable situation.
I believe that what is being done now with the TSA scanning and molesting people at the airports is a test of the American people to see how they will respond to a blatant violation of their rights. If we accept their premise that our rights must be violated in order to ensure our safety then they will have no problem taking further steps down that road. If on the other hand we stand up to this and force them to back down we will at least delay any further violations of our rights.
A firm line in the sand needs to be drawn here and then we need to start pushing that line back in their face. If a state cannot afford to pay the interest on their debt then that state needs to stand up and allow itself to fail. It may require many people to take huge losses on their investments and it will force the state to make painful cuts to their budget but the alternative is slavery.
We fought a revolution to escape from Europe and once again the failures of Europe are evident before us. We must reject the notion of a bailout, of the easy way out and once again forge ahead in our own direction. Our grandparents did not flee Europe in order to recreate their system here.