Economic Disaster, its Cause and Cure

What in the world is going on? The entire world economy is in turmoil. International trade has slowed drastically. Unemployment here and abroad is mounting day by day. Small businesses and shops are closing everywhere we look. The stock market is in the tank. The Federal Reserve (our own, homegrown banking cartel) has more than doubled the monetary base since September 2008. They have introduced $800 billion of new money in a four-month period. This is a hundred times as much as was printed to support WW2 and all the wars since and it is just the beginning of what will be needed to cover the Bush and Obama bailouts and stimulus plans. There is no way that all these expenditures will ever be repaid through taxes; serious inflation is in the offing. And to top it off no one really believes these spending programs will actually correct the underlying economic problems.

So how did we get into this mess and what can we do to protect ourselves, much less get out of it? Well, back in 1913, as Congressman Charles Lindbergh Sr. said, “we put the fox in charge of the hen house.” We established the Federal Reserve System, which gave the bankers effective control of our money supply. Since then, they have introduced so much new money that today's dollar has been reduced in value to about four cents relative to the 1914 dollar. Things, on average, now cost 25 times as much as they did then. During the Greenspan era the recklessness increased markedly and new money (which distorts the economy by leading people to believe they were wealthier than they actually were) was made available year after year. This led to the housing bubble, the credit bubble, the commodities and all the other bubbles and the house of cards based on the fractional reserve banking system is now in the process of disintegrating. It almost collapsed last summer with the failure of Bear-Stearns and Lehman Brothers when banks began to refuse to lend to each other. Why? Because they couldn't trust each other, not knowing who would be next to fail. Overnight lending between banks is a vital necessity when their reserves are only a fraction (8-10%) of their on-demand deposits. They keep afloat because moneys drawn from one bank end up in other banks and those that are heavy in cash can then lend back to those in need of cash. The whole scheme is dishonest at its core (although highly profitable to banks) because the total of money loaned-out is ten times as much as is held in reserve for depositors, who are told their money is in the bank.

The lifeblood of our economy, indeed the whole world's economy, is based on money. Without a currency that can be trusted, the entire structure of economics, the division of labor itself, falls apart. Our wealth, our well being and our very lives are dependent on the continuation of this highly complex structure called the economy and it in turn is dependent on sound money. We have placed our trust for the management of this money on a gang of thieves called the Federal Reserve. They have now clearly demonstrated their inability to restrain themselves from the excesses that can be perpetrated within a paper money system. If we want to survive as a nation, we need to eliminate both the Federal Reserve and paper money.

But, that's not all, we need to go back and see why it is we let ourselves get caught in this net in the first place. Why did our elected representatives and we as a people vote for the Federal Reserve to begin with? Basically, it is because we thought we could trust these men, we placed our faith in their integrity and good character. We forgot that they were really no different from us. We forgot that we are all basically sinful at heart, that none of us can be trusted, especially when the temptation is really large. We have attempted to do what God has told us is impossible, that is, to govern ourselves and live without regard to His word. He told us that we must always keep equal weights and measures, free enterprise economics and only weights of gold and silver as money. We have decided that fractional reserve banking (unequal weights and measures), a little bit of socialism and paper money is OK. In fact, we felt it would be an improvement over what God commanded; and there lies the beginning of our downfall. Christians! You need to understand that the Bible is not just a way to heaven, a way of salvation for the next life. It is also a way of salvation from our sinful selves in this world. It provides all the instructions we need to establish and maintain a godly order in this sin-filled world. Christ told us that we are the salt and the light of the world but we have shaded our light, allowed our salt to become corrupted and hidden ourselves in our churches while the world around us grew more and more sinful and wicked. How will you answer Him when He asks why you have ignored His commandments? Will He say, “I never knew you: depart from me, ye that work iniquity”?

The views expressed in this article belong to the author/contributor and do not necessarily reflect the views of the Nolan Chart or its ownership

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