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The primary
cause of the world’s economic ills – rocketing
us headlong into the MOST DEVASTATING GLOBAL CRISIS SINCE WORLD WAR II
– was the abandonment of the gold standard in 1971. Mind you, this
event was not solely U.S.-based, as the ENTIRE WORLD stood by idly and allowed
it to happen, without so much as a peep. Forty years later, essentially EVERY
nation on Earth faces a debt crisis of EPIC proportions, with no feasible
solution other than DEFAULT, via either reneging or hyperinflation.
These “solutions” WILL occur universally - it’s only
a matter of when and how.
Back to
the U.S., things have gotten so bad – in our stagflationary
nightmare – the government has become the “provider of last
resort,” of essentially ALL vital needs.
In
financial markets, the PPT supports stocks, the Fed buys bonds, the ESF
protects the dollar’s exchange rate, and the Cartel – of course
– attacks gold.
Economically,
the Fed provides free credit to “TBTF” banks, the Treasury
“invests” in zombies like GM, Citigroup, and AIG, Congress
authorizes military spending to provide unproductive jobs (to soldiers) and
“war profits” to the military-industrial complex, and welfare is
provided to the “unwashed masses,” in the form of Food Stamps,
“disability,” Medicare, Medicaid, Social Security – now
that it operates in deficit – and cheap, but un-dischargeable loans for
everything from homes to cars to college tuition. In other words, it sticks
its muddy paws into every conceivable “cookie jar,” destroying
whatever it touches. Best put, the “ANTI-MIDAS TOUCH.”
The below Zero
Hedge article depicts this phenomenon in its full glory, the perfect
example of how the government enslaves itself, individual citizens, and the
taxpayers at large by “lending” to poor credits for unnecessary
reasons. In a nutshell, it dissects recent consumer credit data, noting how revolving
debt has plunged to levels last seen in 2005 – as banks are NOT
LENDING because they are INSOLVENT – while non-revolving debt
has EXPLODED to record highs.
Consumer
Credit Soars As US Government Encourages Student, Car Loan Bubbles
Non-revolving
debt is “the type used to fund GM car purchases by subprime borrowers
and push the student loan bubble well into its $1+ trillion record
territory.” In other words, negatively impacting the ENTIRE NATION,
other than GM executives and those receiving cars, homes, and education for
free. The perfect Ponzi Scheme, except there are NO MORE BUYERS left, other than
the “buyer (and lender) of last resort.”
Under a
gold standard – such as the one SUCCESSFULLY utilized in the late 1800s
– such a Ponzi Scheme could never even start, let alone expand
to such epic proportions. But alas, the world collectively opted in 1971 to
utilize a system that had FAILED IN ALL INSTANCES throughout history; only
this time, on a GLOBAL basis where no true “safe havens” existed.
Of course, the SUCCESSFUL gold standard construct remains, and in due time
– perhaps A LOT sooner than anyone can imagine -will yet again be
embraced.
PROTECT
YOURSELF, and do it NOW!
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