Archive for February, 2014

The Truth about Ukraine – What it Means for the USA

If anyone wants to truly understand what’s happening in Ukraine from an insiders point of view, I highly recommend you first read a recent Armstrong post.

Ukraine-Lenin-protest

The common thread that runs through the conflicts occurring all over the world (i.e. Ukraine, Syria, Turkey, Thailand, Argentina, Venezuela, Southern Europe, the Arab Spring, etc.) is economics, as in declining living standards caused by government corruption and fraud, that also is producing the economic death spiral – more appropriately called The Black Hole of Govt. If our political establishment is not ejected from every seat, then these same conflicts are headed our way. Do you think Obama’s crackdown on free Press, and increase in Constitution-bypassing Executive Orders are just coincidences? Why is it our media has yet to utter the words “corruption” or “economics” when discussing the cause of the conflict? It couldn’t be because they are scared to death of the message reverberating out of Ukraine, now could it?

Who thinks that the people of Ukraine and elsewhere one day woke up and decided to throw caution to the wind and go fight their govt with sticks and stones? The corruption caused by excessive govt power takes decades for people to reach their breaking point. This breaking point is always caused by a declining economy that has been choked off by govt largess, and capital fleeing for safer jurisdictions. Ukrainian protesters are mostly college educated, who can’t find a job and are seeing their dreams go up in smoke. Is this starting to sound familiar?

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One Imperative to Prevent Economic Collapse and War

Most of you already know the one imperative, but permit me to list a few factoids about our current situation to see if others can figure out what must be done first before even attempting any solutions. Without acting on this imperative, it is a virtual certainty that we will face another world war by the end of the decade.

– For over 30 years the majority of our “growth” has come through credit/debt creation – that is, pulling demand forward and betting on the come, that future demand will magically appear. The longer this Ponzi scheme is continued, the bigger the rainbow that must be pulled out of the backside of the Unicorn.

– Today, over 90% of the money created is credit handed out by banks for mortgages and other loans, increasingly for subprime car and student loans, and compounded by excessive leverage. If not for fraudulently suppressed interest rates, interest payments on the exponentially increasing debt would already be consuming the majority of the govt’s tax receipts. Of course, the govt could have eliminated the interest by actually printing money instead of creating it through debt issuance by the money center banks. Accumulated interest now represents around 70% of national debts. There’s a reason that some religions prohibit charging interest.

– Congress controls the purse strings and could have at any time brought spending in line with tax revenues. They don’t balance the budget because they wouldn’t be able to even pretend that they could fund the promises on which they depend to get elected. The incestuous relationship between Congress and Wall Street exists because Congress needs the banks to finance their promises, and the banks need Congress to maintain the debt Ponzi scheme that generates the interest (life blood) for the banks.

“We can ignore reality, but we cannot ignore the consequences of ignoring reality”       -Ayn Rand

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