We have forgotten the stagflation of the ’70’s, created by the ‘powers-that-be’ with a false ‘oil crisis.’ As mentioned in other posts, my father was a gas station owner/mechanic at the time, and it was a hideous time for enterpreneurs in that industry. The lines for people to get gasoline often went blocks and blocks, sometimes a mile or more. I was surprised, even then, that the stress alone in dealing with desperate customers didn’t kill him.
In our day, the ‘powers-that-be’ have created a new economic crisis and they, once again, have done it on purpose. Using oil, and creating crises around the world that continually put oil at risk, among other pre-planned economic problems, they are setting us up for a financial catastrophe that will go screeching around the world.
Another coup for Big Oil, and the military industrial complex. Look!
It isn’t a coincidence that just when the housing bubble collapses that two things happen. The first is the easy credit cards that permit people to continue a standard of living they can no longer afford, at criminally high interest rates. You may not remember, but thanks to our bought and sold congress, you can’t claim credit card debt on your bankruptcy anymore, like student loans and back taxes. But there is another feature- if you are late on ANY bill, even a non-credit card bill, something like your light or phone bill, your credit card company can increase your interest rate to the very highest allowed by law.
The second is that suddenly, though the companies are whining about all the lost mortgates, they have dried up all new and re-financing mortgages that could help people keep their homes, saving more foreclosures.
Drying up mortgage credit purposefully is what made the Great Depression so terrible, so long lasting, and drove the government to consider fiat money. Removing re-mortgaging options meant that a very few people walked away with most of the assets for pennies on the dollar, and they’re doing it again.
You cannot be enslaved to a system that permits you to declare bankruptcy and remove all of your debt. By keeping you obligated in ways the rich NEVER are, it isn’t hard to foresee the return of ‘debtor’s prisons.’
Furthermore, this time, there is no fixing the problem. It is fiat money that got us into this mess, and the estimates look now like we OWE 720 times the GDP so far!
Ron Paul is the ONLY candidate that understands the workings of this criminal economy and how it works and doesn’t work. He’s the ONLY one who knows what to expect and how to fix it. But, it is so painful that it is hard to face.
Take stagflation, for example. This was the crisis of the 70’s and it made everything about living extremely difficult. Businesses went under. Families suffered. Credit was denied to women and minorities as a matter of principle. Home ownership was very difficult to achieve and for young couples, establishing credit at all was a tough hill to climb. To avoid hyper-inflation we had wage/price freezes that kept things stagnant, but perhaps the alternative was worse.
Now, we’re looking at INFLATIONARY DEPRESSION. What does that mean? It means that inflation will not only make prices for everything rise faster and faster, which is the inflation part, the depression means that people won’t buy or sell anything. They won’t be able to.
We are seeing this already in some areas of Michigan, where even yard sales sell almost nothing. You may want that used couch, but you don’t dare buy it- your utility bills and gasoline expenses are going up at such rates that you may need the extra money just to stay at the same place. You may want to sell that couch because you’ve lost your house, and are hoping to raise the cash for a move elsewhere, but nobody wants it for a price. You have to nearly give it away.
A depression means that nobody can buy or sell anything. They just don’t have the money for commerce. Combine that with high-test inflation, and even the things you MUST buy, like food, get more expensive by the day.
Even Faux News has decided they had better talk to Ron Paul, since there isn’t another Presidential Candidate that can even approach this issue with credibility.