“The way the system is supposed to work, when times like this come, the solid people, the competent people, take over the assets from the incompetent people and then you start over again from a sound base, this is what South Korea did, this is what Russia did, and they did fine. What they’re doing this time is they’re taking the assets away from the competent people and giving them to the incompetent people and saying now you compete with the competent people with their assets and their money – it’s terrible economics and it’s not going to work, it hasn’t worked before and it’s not going to work this time. The way the system is supposed to work is when you make a mistake you go broke, [Bernanke] refused to let people go broke, he saved his friends and now we’re all having to pay for them.”
– Jim Rogers
The moral hazard created by the Federal Reserve’s and the government’s response to every financial difficulty faced by banks and corporations have left our financial system teetering on the brink of collapse. Our largest banks are insolvent.
It has gotten so bad that it takes the leader of a socialist country to provide capitalistic free market common sense to American leaders: “This crisis did not come about because we issued too little money but because we created economic growth with too much money and it was not sustainable. If we want to learn from that, the answer is not to repeat the mistakes of the past.” – Angela Merkel
Our fiat currency system has proved to be a wretched failure.
Average Americans have been victims of the boom and bust caused by the Federal Reserve policies. The sole beneficiaries have been bankers, politicians, the military industrial complex, and the super rich elite.
Journalist H.L. Mencken understood overbearing government, the ignorant masses and the power of a few brave men:
“All government, of course, is against liberty.
Most people want security in this world, not liberty.”
“The most dangerous man to any government is the man who is able to think things out… without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable. It doesn’t take a majority to make a rebellion; it takes only a few determined leaders and a sound cause.”
The abolition of the Federal Reserve will not be without a ferocious, possibly deadly, fight.
Without a fiat currency, Democrats would not be able to tax and spend on their social program agenda. Republicans would not be able to tax and spend on their beloved military industrial complex and the wars it encourages.
A sound commodity backed currency would force government to become smaller and dramatically reduce the obscene profits of bankers.
A commodity backed currency would favor saving and investment versus borrowing and consuming.
If there is one thing that should have been learned in the last two years is that an unsustainable trend will not be sustained.
If it feels like your family has fallen behind since 1971, you’re right. Your pay has not come close to keeping up with the cost of a new house, a new car or gas to fill up that car. This is why it takes two parents working to just to keep up with inflation.