Drowning In Debt: A Death Spiral

Death Sprial Economy

In what now seems to be like the ‘new normal’ Russia Today America tells some hard truth about the financial system and the economy here in the United States.   Pay very close attention to what Mr. Duncan says in the first few minutes.

Former World Bank economist Richard Duncan appeared on CNBC over the weekend explaining how the US government is delaying the economy from going into a “debt deflation death spiral” and explained how a massive depression unavoidable. According to reports, many experts share the same concern that America will go through a severe state and when this happens the world economy will follow. Peter Schiff, president of Euro Pacific Capital, explains the situation and what can be done to solve this issue.


Here’s the rub:  While we’ve watched in horror as the government of Cyprus has seized the bank deposits of its citizens in an attempt to recapitalize its insolvent banks, the fact is Ben Bernanke and the Federal Reserve have been doing the exact same thing here in the United States!   The only difference is that ours is called ‘quantitative easing’ and theirs is called ‘confiscation.’  By re-purchasing US debt, the Federal Reserve is emitting unbacked credit into our financial system.  The average, everyday citizen calls this ‘printing money’ and in many ways it is exactly that because credit does spend the same as cash, right?  Well, the real difference is that cash doesn’t have to be paid back.  It doesn’t have a ‘due date,’ but what Bennie and his Ink-Jetz are creating DOES.  Not only that, in order to emit credit, someone has to be willing to take on the debt and also make the payments.  Since the private sector can no longer afford to take on more credit, the government has stepped in and taken the private sector’s place; in other words, the consumer is tapped out; he’s broke.  The government steps in to replace the consumer by, you guessed it, borrowing massive amounts of money.  Now do you see why our Congress has absolutely no interest in cutting our deficit?  If they did, Bennie wouldn’t be able to continue to spew out credit/debt because no one would be contracting to pay it back!

But now it gets really problematic for YOU the American citizen.  While Bennie and the InkJetz are busy creating credit by his QE magic, he’s also creating DEBT and he’s also pulling down the value of US dollars already in circulation.  When you do this, it causes the things you have to buy to go up in price; things, like gasoline, food and housing.    So, this means his ‘money printing’ directly steals your income.  In addition, by re-purchasing US debt, he’s artificially holding down interest rates.  Those interest rates are what you would otherwise earn on a savings account or a certificate of deposit (CD).  Those means of income have been literally taken from you.   You are being robbed in the exact same way that the citizens of Cyprus are being robbed….and for the same reason:  Our banks are no more solvent than theirs are.  Absolutely NOTHING has even been addressed since the collapse of 2008, much less fixed.

Meanwhile, the Federal Reserve not only steals your income in the form of inflation, but it destroys the interest you would otherwise earn on your money.  However, the worst thing of all is that the government’s stepping in to replace private sector demand for debt/credit is DESTROYING YOUR JOBS!  So, you see, everything you have ever worked for, everything you have ever dreamed of having, is being stolen right out from under you, just like the Cypriots.   Because in the end, we are all Cyprus. No one gets out of this in tact.  ALL of the world’s largest banks are insolvent.  They have been since 2008.  You WILL be systematically robbed until they’ve taken everything from you.

Are you awake yet?!  Isn’t it past time to….

Stop the LOOTING