Pages

Wednesday, January 21, 2015

Get prepared...

Countdown to calamity

Why time is running out for our economy

by John Myers


I wrote this article before the State of the Union address, so I don’t know what President Barack Obama said. My best bet is that he bragged about how well his policies have rebuilt the economy. It’s a lie. Obama and his lapdog, the Federal Reserve Board, have barely held the country together. And they have done so at a terrible cost over the past six years. But time is running out — not just for Obama but for the stock market and for all of us. The depression that Washington has borrowed trillions of dollars to stop is coming to collect.

Through policies of the Federal Reserve and the Treasury Department, the U.S. federal government has left our children on the hook for trillions of dollars in debt that America has borrowed since 2008 as Obama has doubled down on the massive spending spree begun by his predecessor, President George W. Bush. Very soon we will face the consequences of too much debt and no new real wealth creation.

Of course, it is high times for the hogs of Wall Street, who have pocketed profits by the billions of dollars since the late 2008 bailouts. They have either invested in offshore places like China or tucked the money away for themselves in Switzerland. I suspect Obama has his own nest safely socked away from the collapse his presidency only delayed — a collapse he knows is coming and a collapse he wants to postpone until the next president takes office.

We are sitting on an economic time bomb that is ticking down. Obama and his economic advisers must understand the creation of fiat money by the Fed’s quantitative easing has done nothing to rebuild the foundations of a once-robust American economy.

The chart below shows the incredible growth in money zero maturity (MZM) supply. MZM is the super money that the Fed lends out to banks and that the banks are supposed, in turn, to lend to businesses and consumers. You can see that when Obama was first elected, MZM stood at $6.3 trillion. This year, with Obama in office for only six years, it is more than $13 trillion. Such doubling of MZM happened during the inflationary 70s. But in that case, the rise from less than $500 billion to $1 trillion took 11 years, from 1971 to 1982...


Read the rest here:
http://personalliberty.com/countdown-calamity/

No comments:

Post a Comment