posted by Kyle on Sep 7
On 6 September 2007 the Federal Reserve decided to use its unconstitutional power to both tax us and further pull back the spring on our coming economic crash!
What do I mean by “pull back the spring”?
Over extension of credit causes major problems, because banks loan out money to people who are very likely to default on their loans. When they default, serious problems ensue. When lots of people start defaulting, losing homes, closing businesses et cetera, the problem compounds itself.
The recent housing bubble is an example of this. Prices went through the roof and everyone who could pick up a phone and call a loan officer was able to buy a house; a far more expensive house than they could afford. Now, they’re losing them and credit is drying up. This leads to a recession. But what if you print more money and lend that money out at the same terms? The problem gets worse! If the initial over expansion of credit stretched the spring a little bit, the subsequent expansion of credit pulls the spring back more and more. Eventually, you have to let go. The farther back you’ve pulled the spring, the more violent the retraction becomes. Brace yourselves, because it’s going to get nasty.
The Fed decided yesterday to “inject” 31.25 billion dollars of “liquidity” into the markets. In layman’s terms, that means they decided to print some money and lend it to their buddies who could in turn lend out MUCH more of it. This is great for their buddies. When they get this 31.25 billion, they get to in turn lend out almost 10 times this amount of money! If you’re the first person to get your hands on newly printed unbacked money, you can call yourself one lucky bastard! That money is just as useful as the money that already existed. Once you spend it, though, everyone’s money goes down in value. This is called inflation, and it happens when governments print money out of thin air.
Make no mistake: what the Fed did was to just tax us. We didn’t get to vote on it. Our representatives didn’t get to vote on it. We just lost money. Each and every one of us.
Who made money? Bankers. They made lots of money.
This is disgusting. It is the most regressive tax out there, it is a silent tax that most people don’t even realize that they’re paying and it doesn’t even pay for any government services (unless you count the credit that becomes available, which means that our government accumulates more and more debt).
This has got to end or the great depression is going to look like a cake walk in comparison to whats coming.
Those of us who understand this are going to get very rich, because we are buying up gold left and right. Average, working people are going to suffer; they are going to suffer seriously.
This is the reality of the government that we have today. Politicians and their friends are getting rich at our expense.
There is only one man who can save this country, and his name is Ron Paul. He will work to give us sound money again.
