The Economy of Debt

The AP reports 7-22-11 “Bernanke said more stimulus would only be necessary if economic conditions worsened and deflation re-emerged as a threat.” “He also said the Fed was nimble enough to respond if the opposite happened. He said the Fed was ready to raise interest rates that have been held at record lows for nearly three years, should the central bank fear a greater risk of inflation.”

Thomas Jefferson said, “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

Centuries apart yet the warning couldn’t be more relevant if it were said today. We should stop letting the banks issue credit; it’s no longer about paying off credit, it’s all about “managing debt“. First they issued debt, then they insured the debt, then they bet against the debt they insured, knowing full well that the debt would not be paid back, and made billions while rigging the bets. And it was all done in secret, while the Federal Reserve, the central bank charged with ensuring monetary stability, full employment and consumer protection did nothing.

The end result is that our economy is too dependent upon debt, which has been a leading economic driver for decades. It’s time to dump the debt makers, freeze the banks and re-examine the issuing of currency and debt and who controls it.

Mayer Amschel founder of the House of Rothschild said “Let me issue and control a nation’s money, and I care not who writes the laws.” No wonder the government can only rewrite the laws affecting social programs rather than rewrite the laws about who controls the issuing power of the nation’s currency.

Too many of us are being robbed and deprived of property with millions more on the verge of loosing theirs. These gargantuan banks are like a cancer on this nation and they will eventually deprive us all.

Thomas Jefferson’s warning has turned into prophecy.