Congress Ignoring Looming Financial Catastrophe.(2006)

By: Devvy Kidd
July 10, 2006

NewsWithViews.com

"Paper is poverty... it is only the ghost of money, and not money itself." --Thomas Jefferson to Edward Carrington, 1788. ME 7:36

Contrary to the fine tuned propaganda coming out of Washington, DC and the lackey mainstream and cable media about alleged low unemployment figures and a rosy economy on the upswing, nothing could be further from the truth. The privately owned central bank of robber barons (the FED) continues to destroy the economy by raising interest rates and pillaging the people's treasury with the blessings and approval of Congress and the White House. If you think these statements are simply hyperbole, you need to learn about the privately owned FED because it directly affects your life, your family and everything you've ever worked for. I recommend reading Congressman Louis McFadden's indictment on this swindle and Dr. Edwin Vieira's masterpiece, Pieces of Eight. It is impossible to cure the cancer by treating the symptoms, which is exactly what's been fed to the American people for over 90 years.

In the first quarter of 2006, home foreclosures skyrocketed up a whopping 72% from last year; you can read all the horrifying statistics here. Sadly, too many Americans who wanted the American dream of owning their own home bought into all the hype and fancy commercials about adjustable rate mortgages. Low or no down and very low monthly payments under an ARM. Too many didn't do the homework about what happens when the privately owned FED raises the interest rates and how it would affect their ability to meet that increased monthly payment. Homeowners with zero understanding of the risk, refinanced their homes by the hundreds of thousands increasing the monthly payment. Many paid off debt, but too many went on buying sprees or vacations, further burying themselves in debt. The banks aren't worried, they just resell the house to the next uninformed American and take them for a ride.

Those homeowners who are now losing their home and must find someplace else to live, are not going to contribute much to the economy as they're already sunk so deep into debt, they'll never dig their way out and the new bankruptcy laws are no longer a quick escape. It also is contributing to a glut of houses sitting on the market which can't be sold because even with two paychecks per household, between the cost of the real estate, rising interest rates and, as those in the know are predicting, $5.00 per gallon gas coming, the wallets of a huge percentage of Americans will continue to shrink and that means less spending.

The average credit card debt for American households is $9,000 and climbing. Despite their best efforts, millions of Americans have no disposable cash after being fleeced in withholding and a thousand other taxes so they're reduced to charging everything these days from groceries to the IRS. Most Americans have already felt the hyper inflation at the grocery store. I shop at military commissaries, but even AAFES, the largest retailer in the world, began passing on the high price of diesel fuel to the consumer months ago. The cost of basic food and necessities continues to rise and it's only going to get worse. Because people will have to use what money they have left for survival, i.e., food, shelter and so on, the amount of money pumped into the economy for other categories will continue to dry up.

While the boob tube touted that 40 million Americans would take to the road for the extended July 4th holiday (used to be called Independence Day), few delved into the meat of where these alleged 40 million were going and how much they intended to spend. I did catch a few interviews on one cable network and each of these families said they would travel no more than 15 miles from home this year and none of them could afford the high cost of tickets to any of the popular theme parks, i.e. Six Flags, Disneyland. The common theme appeared to be we're broke, but we do want to do something with the kids and we're doing it locally.

As I have pointed out so many times over the past dozen years: because of the destruction of our major job sectors that made America the greatest, wealthiest nation on this earth - agriculture, manufacturing and industrial jobs by the MILLIONS shipped to communist countries like China - gradually our economy has shifted into a service oriented one (fast food, entertainment, minimum wage jobs) with the balance of the jobs being medical, prisons or pushing paper for foreign governments. All a recipe for disaster because when Americans reach the point when they don't have any credit left on their eight cards and no disposable cash, they're forced to give up fun times, eating out, vacations, trips to theme parks, river rafting, professional sporting events, etc. As our country has been sold up the river and has lost it's most important job sectors being replaced with "fun" based jobs, lack of disposable spending money will bring a horrible reality to unsuspecting Americans and business owners alike. The "trickle down effect" will become a flood.

A country that produces nothing cannot sustain itself because it then becomes dependent upon foreign nations to supply what used to be produced at home. Folks should think long and hard on that reality: "The measure of the wealth of a nation is indicated by the measure of its protection of its industry; the measure of the poverty of a nation is marked by the degree in which it neglects and abandons the care of its own industry, leaving it exposed to the action of foreign powers." Congressman Henry Clay, 1824.

Bush, financial analysts who make their money selling myths and the poltroons who serve in Congress (with a couple of exceptions) continue to tout a growing economy, low unemployment and a bright future. Why, just last week when the privately owned FED raised the interest rates, the usual chant went with it: The FED will raise interest rates to keep inflation in check and slow down the economy. Huh? Who creates inflation and deflation? The private FED. Why do we want to slow down the economy that keeps Americans working and spending? I simply want to gag each time I hear this bilge. I wish all Americans could read LeMetropole Cafe featuring Bill Murphy and a score of the best in the business on the economy and the folly of a worthless paper currency. Bill and his colleagues are the courageous individuals behind GATA (Gold Anti-Trust Action), exposing the manipulation of the price of gold and the criminal activities of the central bank and Wall Street. If nothing else, the American people should consider what Cheney is doing with his millions made from the blood of innocents:

Vice President Cheney's Economic Hypocrisy

"That means the vice president is betting on a further decline in the value of the dollar against other currencies, a sorry situation directly related to our huge trade deficit and our debt-ridden federal budget. We print greenbacks to finance our profligate spending, and we ship boatloads of those dollars overseas to buy foreign goods. All in all, we're in hock to foreigners up to our necks. And the falling dollar and rising interest rates indicate that foreign lenders are becoming disgusted with our fiscal irresponsibility."

Cheney isn't the only one who feels the dollar is going to take a major, flaming fall:

Warren Buffett isn't buying American - should you?

"Why? Because of the currency risk that comes with having a dollar-based investment at the moment. I, like Buffett, have long believed that, thanks to America's huge current-account deficit, the US currency is due for a nasty fall."

The author of the above column brings out some good points, but she is woefully ignorant about how the FED actually works and she doesn't really tell the full story on what's going to happen when that first wave of baby boomers begin to retire in less than two years. One economist I know simply said, "Mother of God. The American people are going to be shocked into a comatose state because they don't have the understanding to prepare for what's coming."

In the meantime, Congress has been busy with important issues such as: Christian film's PG rating troubles Congress. Congress has NO jurisdiction over the private organization called the MPAA (Motion Picture Association of America) which rates Hollywood's sewage, but that hasn't stopped every Congress for the past 100 years from stomping on the Constitution and passing more and more unconstitutional junk laws. In the meantime, not one incumbent or challenger from the two "main" parties is talking about the looming financial catastrophe coming in 2008 which can't be stopped because neither Congress nor the White House either by ignorance or design will take the necessary steps to stop what's coming. Here's a preview:

The first of the 77 MILLION baby boomers will begin to retire in 2008. The national debt created by reckless, insane free spenders of both parties of Congress and owed to the private banking cabal (FED) is running more than $8 TRILLION dollars. In other words, the treasury is EMPTY, yet Congress continues to UNCONSTITUTIONALLY approve TENS OF BILLIONS of dollars to continue this failed unconstitutional invasion of Iraq, HUNDREDS OF BILLIONS unconstitutionally to rebuild the Gulf from Katrina and on and on and on with NO MONEY IN THE TREASURY. When that first wave of baby boomers hits, the tab to fund all these "entitlement" programs and never ending "wars of liberation" and "the war on terrorism" is so far beyond the realm of anything most Americans can even comprehend, the shock will be crippling.

“To give you idea how big the problem is,” said Laurence Kotlikoff, economics chairman at Boston University, who has written extensively on the subject, to close a $51 TRILLION fiscal gap, “you'd have to have an immediate and permanent 78 percent hike in the federal income tax.....Maybe the public doesn't want to hear it. Maybe politicians think ... the American public can't understand the truth or hear the truth or bear the truth. I think this is garbage. I think that people care about their kids and grandchildren and need to know the dangers facing them — and us.” You can read here a sobering and factual analysis of what economists not on the payroll of the government or some Wall Street banking firm are calling "financial Armageddon." It's coming and when it hits we will see the single largest transfer of wealth from the pockets of Americans into the coffers of the robber banker barons, the same as what happened in 1929 only on a much grander scale. I wish I could locate Pat Riott to get his permission to scan his book, The Greatest Story Never Told: Winston Churchill and the Crash of 1929. This book is difficult to find, but rare copies are out there.

The majority of comfort zone Americans think the "crash of '29' was some sort of anomaly that can't happen again. They think that because some "safeguards" have been put in place by the NYSE, a big crash can't happen again. Not here in America! Really? This is just a small sampling of what's found in The Greatest Story Never Told that might interest you:
In 1929, a financial disaster of unprecedented proportions swept through the United States with lightening speed. The American people began a slow decent into an 11-year financial hell that became known as The Great Depression. Learn:
Why Winston Churchill being at the New York Stock Exchange on Black Thursday, October 24, 1929, was not "quite by chance," as he later wrote.
Why Wall Street "plunger" Bernard Baruch was Churchill's "favorite American."
Why on October 29, 1929, the same evening of the crash, Churchill was guest of honor at a bizarre "celebration" attended to by over 40 "bankers and master plungers" of Wall Street at the Fifth Avenue mansion of Bernard Baruch.
Where the shiploads of gold (the real money) went in the weeks and months after the crash.
Who Churchill met with in Washington, D.C., San Francisco, Los Angeles, Chicago and New York immediately before and after the crash.
Why the Prime Minister of Great Britain was also in New York two weeks before the Crash, and where he went next. (No, it was not back to Great Britain!)
Who supplied the seed money for publisher Simon and Shuster.
How the New York Times "Sunday Editorial" described Churchill's visit and "the man who knew everything" that headed one of the world's leading newspapers!
Who was really manipulating the levers of U.S. financial policy during Herbert Hoover's 4 years in office? What Hoover knew about the people working in his administration and who they really worked with and for.
About Cecil Rhodes (Winston Churchill's friend!) diabolical will and the plans it contained....Read it for yourself! What was the plot that began to take shape in the Wilson administration?
The curious connection between Cecil Rhodes, Winston Churchill, Bill Clinton, presidential hopeful H. Ross Perot, SONY founder Akio Morita, and U.S. Ambassador to France, Pamela Churchill Harriman. (End)



Factor in the illegals sending $60 BILLION a year down to their real "homeland" (Mexico), the massive financial drain and thievery against Americans by illegals and the picture gets even darker. Americans had better wake up because what's discussed in Carolyn Lochhead's column isn't even being hinted at by Congress, Bush, candidates for Congress (Republican or Democrat) or the "right to know" media. But, it's coming at YOU like a freight train. If you haven't diversified some of your assets into gold, I encourage you to learn why it's so important to educate yourself about what constitutes real money and what it means when a paper currency begins to drop in value like a lead brick.



While the price of gold has dropped in the past few weeks due to the intervention of the money lenders manipulating the price, this really is a good time to buy. I encourage you to call Harvey Gordin at El Dorado Gold and talk with him, get his new reports which are complimentary. Find out how to protect what you have left because the numbers don't lie. As I said, Congress has done nothing to stop this looming crisis except sit on their corrupt, inept backsides and vote more money for education, Russian political parties, Israel, AIDS treatment in Africa and massive freebies for illegals - all unconstitutional. The American people are being played for fools. Gain the knowledge and then make the best decision possible for you and your family. 2008. Not so far away.