Time wants to know: “How bad will the mortgage crisis get?” They do happen to mention: “The Bush Administration’s… stimulus/rebate package… Federal Reserve’s aggressive rate cuts…won’t stop the carnage…banks will eventually run out of capital.”
Ron Paul has told us that printing more money that provides the ‘capital’ only worsens the problem, because it creates inflation and destroys the dollar.
Worthless money has a name: Depression.
That kind of pain almost no one in America, except our seniors, have any kind of experience with.
Pain is to turn to alternative monies, like the Amero or the Euro which is ” the way politicians are trying to work themselves out of the fall of the dollar.” Yet, if the money you have, like the dollar, is worthless, what will you use to purchase any other form of currency? You can only, like our own government is doing, ‘sell off the assets’ that you have. This process may ease the pain, and buy some time, but if you’ve ever had to sell off all your belongings at fire sale prices, you understand the huge difference between what you paid, and what you get.
Yet the means by which the government managed to slowly drag the American economy out of the depression are no longer available to us. They used the institution of Social Security to provide income to certain individuals, initiated other government paid programs to increase employment, and transformed the economy into a government managed one. In our day, these programs are so expensive and overbloated, that it is only a matter of a short time and they themselves will contribute to the decline of our economy, instead of spurring its improvement.
Pain is transforming into a production economy instead of a consumer economy will also create incredible difficulties. With the collapsing value of ‘assets’ and an import economy, where means and methods of production have been long ago exported from the country, mean that locally, expenses associated with actual production of valuable commodities exceeds the amount that can be paid for them because of the artificially low prices of the ‘competition.’
Pain is attempting to make micro-economics work for Americans once again. Government regulation is so vast that even what we can have in our yards or garages is dictated by legislation. With ordinances and enforcement, you cannot have chickens, cows, or even sheep without special variances.
Since we’ve already suffered under a Vampire Economy, the creative means by which other individuals have found to do business for their own survival may contribute something to our own efforts.
In any case, we are looking at some serious economic pain coming up. Ron Paul happens to understand, and know how to deal with, the various types of pain to come. An expert in economics, a dissenter from every damaging piece of legislation and spending throughout his terms, he perhaps can help us to ease the pain of the crash landing that we are headed for.
Can YOU run the gauntlet?