Why the U.S. Must Declare Bankruptcy
inflation in germany
In tribute of Michelle Obama and the revived victory garden I returned to my roots this year. Having growing up in Africa in a completely free market society I always had half a dozen businesses running. As a kid, I had a half acre garden behind our house that I used to help feed our family. I produced charcoal which I had a team sell. We created a tie-dye t-shirt enterprise and then I taught myself to batik. Oh, and the biggie was I had the biggest poultry and goat operation in the area. Wow, can you hear me crow? What a rooster.
Then I came to the USA. Unfortunately, I bought the lie that what I had been doing was all kids stuff and I needed to get a real education. So to please the folks I did and my diploma is somewhere in the recesses of the garage. What I didn’t know that even back in the late seventies things were changing. That a shift was beginning to happen and the ground was beginning to quake. To the outside eye everything looked like it was fine but cracks in the modus operandi were already happening.
Of course, hindsight is 20/20 but the Federal Reserve Bank which is neither federal and has no reserves was destroying our economic system. There is screaming across the nation now about spending. But if you understand the fundamental system that happened when we handed over our economic system to a private enterprise it becomes painfully obvious that there is no way out except to wipe the slate clean and return to constitutional principles.
I found out about most of the shenanigans that were happening when we lived in DFW 15 years ago and we moved to the Turks and Caicos Islands to start a new life. Unfortunately, my wife was injured on a return trip, the medical bills started spiraling out of control and we have been in Tucson ever since. But back to the Nonfederal zero reserve banksters. Let me make this very very simple. Like my cigar smoking sales manager used to tell me, “explain it to me like I’m a fourth grader”.
The constitution only allows the treasury to coin money and the congress are the ones who mandate how much money can be minted. Uh, coined and minted? Hmm, there’s a clue Sherlock. Well, when we abdicated our authority to sound money to useless pieces of dirty green paper and called that money we created a runaway government and handed them a blank check. But that’s not really the most evil part of the plot. We gave the Federal Reserve (not a part of our government or country) the authority to create money out of thin air.
Let’s say I own all the apples on the earth and you need apples to run your business. Well what if you come to me and say “Jake, I need ten apples this month to run my business”. I smile and say “Great here you are and oh by the way when you bring those back I need you to bring me an extra apple.” Well, you are so happy that you got your 10 apples to run your business that you don’t think much about that extra one I had told you to bring.
So you go out and do your business and when you come back with the ten I say “what about the extra one.” You say to me “but Jake you own, produce and control all the apples how am I going to get another apple?” I nod and say, “That’s O.K. how many apples do you need this time”. And of course you say, “Just ten more” and I remind you, “Don’t you mean 11 since you have to pay that one back as well?” Well, this continues until now instead of needing 10 apples a time to run your business you need 20 or 30 and more because you can NEVER produce, control or own any apples. They all belong to me. The Keynesian theory of economics is a joke and fortunately the Austrian School of Economics is gaining ground. My only hope is that we don’t end up like the lady in the picture.
Now this may sound very simplistic but it IS the way it is and what has been happening during our lifetime. All those apples are just getting passed around and like kids playing marbles we see how many we can collect but they ultimately belong to the Federal Reserve Board and we have hit a wall. If all spending were to top today the debt could never be repaid because it’s mathematically impossible. The solution is to declare bankruptcy, take our licks, get the Federal government out of our business and return to a gold based currency. We had that for over a hundred years had zero inflation (a code for government tax) and the dollar actually rose in value. The term “sound as dollar” actually meant something and we were the envy of the world.
Well, what in the world does this have to do with Internet Marketing? Everything because as I opined in an earlier posts we will all have needs as humans and customers, clients, patients and prospects are forever. Dig in, cut expenses, learn to do this new style of marketing which is really just word of mouth on steroids and continue to work on your skill set. For the first time in history with a two hundred dollar flip phone, a college student who is majoring in English, and some creative ideas you can compete with the giants and win.
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I think right now is the best time to start a business and really prove yourself. If you can do it now then you can succeed at any time. Now is the time to compete with the giants.
This is a very good explanation of the reality of Fiat currencies. In the history of the use of Fiat money systems they ALL fail and hyperinflation is the result. As the old saying goes, “Those who don’t know history are destined to repeat it.” ~ Edmund Burke ~
Not only do we need to take back the power to coin money and put it back on a gold standard (or silver, platinum, etc.). We also must eliminate all the onerous laws that keep the plutocracy in control and prevent us from starting businesses and living free. Revoking the Corporate Charters of all publicly traded multinational Corporations that do not act in our best interests would be another excellent idea.
You only touched on the supposed necessity of a college diploma. I see that as a great way to put young adults into debt they can never climb out of and keep them chained to a J.O.B. (what a young Internet Entreprenuer I knew accurately referred to as the “Just Over Broke” plan). It also keeps young people from being productive during what could be more of their passionate and productive early years.
In the 1970s many people had long-term careers that had real retirements (which were stolen from them using the illegal Cash Pensions), full health benefits (which rarely exist today) and salaries that would never allow them to get rich but at least supported a decent house and vehicle. How many today still have any of those?
THAT is why the “economic recovery” is not going to happen. Where are the careers equivalent to those that are now gone? What are those people doing now? They are underemployed, unemployed or trying to start businesses of their own hampered by onerous fees and laws.
Every person who no longer has that level of income must reduce spending or go deeper into debt. That debt costs more today than ever even for those who paid on time every single month! They can’t spend money they don’t earn any more and that impacts every business their spending ever touched from their auto mechanic to their dry cleaner to their grocery store.
All of those businesses will earn less so all of them also must spend less. That snowball is already rolling down the hill unstoppable. The only way to reverse it is to consciously decide to totally change your life, probably relocate to somewhere less expensive, and decide which businesses to support with the lower amount of money you will have.
I believe in ONLY supporting small online and traditional businesses. The money you spend with them benefits the most other people because they don’t have elitist CEOs, COOs, and other executives to support and a Board of Directors filled with wealthy people. They are like you and me – they support their families and local businesses and they buy from other small businesses that support their families and local businesses.
Jake, I hope you and your readers will consider supporting my BizLuv MEME. I am glad you have installed KeywordLuv and would love to see you install CommentLuv too. You can read why in my post about the DoFollow CommentLuv KeywordLuv community.
Will consider – but don’t have mechanism to monitor filth that comes in at time. Gerard Celente of the Trends Institute is on the same page as we are and my only hope is that “we the people” can hold onto the power of the net to take back the power that belongs to us. As part of our business model we have not gone with the typical “what the market will bear” model as much as what will provide a good living for all and a win, win, win and sustainable system. Our biggest objection is that our pricing is too low. Oh well, we’d rather help tens of thousands of clients than 20 or 30 big shots. Thanks for your suggestions and how would I include that. Also, what about “SEO Back Link Lover Groups”across the social media world????
KeywordLuv is what attracts spammers the most; CommentLuv is simply a way for readers of a blog to see what the other Commentators have been writing about lately. You can see how that works in my blog and click through on any of the blog post titles to see how the comments work in many others.
Akismet catches the worst of the SPAM and the rest are the type of comments you will see in my blog that are primarily from offshore SEO companies hired by small businesses that don’t know how to use the Internet effectively yet. I keep some of the comments to help them because these are desperate times already for many.
“We the people” that actually “get it” are few and it is up to us to share what we can see with the mutlitude that continue to support what is destroying our economy. If we don’t we may lose the Internet as a resource – unless some group like the individuals behind RiseUp.net can figure out who to create a separate Internet for us.
We all must choose. Will we continue to be selfish and greedy – always wanting more than we actually need and using non-sustainable inflationary systems (banking) to speed our [temporary - until they pull the plug] “successes”? Those on this path only want to provide services to the Fortune 500 or wealthy because there is far less money in supporting small businesses and honest individuals.
Or will we realize that although we will not get rich, living lives of self-sufficiency within our means and supporting small businesses and each other is the peaceful, ethical solution? While none will amass great monetary fortunes or buy more and more stuff they don’t need in the first place, all will have a decent, sustainable quality of life.
Many will continue to support the plutocracy in the mistaken belief that they can become part of it. (Clue: even if you are already a multi-millionaire you will never be part of the elite; you are simply a bigger pawn for them to scam.)
Those who are still buying into the “American Dream” need to wake up and realize that is has become the “American nightmare” and we are the fuel that keeps driving it. Take away the fuel and take back your lives!
We belong to and support blogging collaborations both public and private and have much experience in local marketing. We will contact you directly to see what else we can do.
I hear what you are saying but I like to watch some of the T.V. shows about factories and things like that and if you think about it being raised in Africa I am all about self sufficency but trade all began eons ago. Even here in Arizona where tribes had far more pottery than they could possibly use in a life time so they traded it for dried fish all the way down to the Baja and so on and so on. The problem I see is that we have a fiat money system where it is as if everyone one but the guys holding the control are on quicksand. The old have had their “nest egg” stolen. The young have no motivation to save.
The middle aged are depressed because – what’s the point???? And business has no basis to grow and hire and produce more bagels than they can eat to exchange for the flour they need to pay the farmer who grows who pays the driver who picks up the grain. Greed has nothing to do with having more than you need. Greed is getting all you can – canning all you get and then sitting on the can. That’s greed.As long as there is a free flow of goods and services and people are generally aware of the costs involved a society prospers. Anyway, a bit far a field but getting ready to travel so not completely focused.
I see that I am one of the “old” who had our pensions stolen. (I worked at IBM for 23 years before the illegal cash pensions claimed ours.) There IS a solution and it is the same solution there has always been and most ignore it for the same reasons they always have.
Most want more wealth and luxury faster than they can obtain by what they can produce. The desire to get it all yesterday is why fiat money exists, why people borrow, why debt is out of control and why the house-of-cards economies always come crashing down. Far too many people who do not actually create anything substantive are taking their cut off the top (or out of the middle).
We have to stop idolizing those who make enormous sums of money on the backs of someone else’s labor. The way most wealth is generated is by keeping a large portion of the profits generated by the labor of many others and usually paying them less than a living wage or by taking too much profit in the middle and leaving too little for the farmer, laborer, artist, carpenter, etc.
The solution is being willing to pay a reasonable amount including profit to those who labor. That creates SUSTAINABLE growth over time. Here is an example that clearly shows how this can work.
Imagine you have two small towns. In one the people are generous. Each is willing to pay a reasonable price for quality services and products (even if they could buy it cheaper somewhere else). Those they pay have comfortable incomes and money left over. They spend that money on the quality services and products of others. Everyone willing to produce quality goods and offer good service gets more affluent over time and the entire local area thrives.
In the other town most of the land and money is controlled by one or more powerful, wealthy people. They lean on their suppliers to pay the least they possibly can. They keep wages down. Workers have no disposable incomes and work long hours so they have no time to do much of anything but work. Their suppliers are barely getting by so they can’t hire any new employees and have no money to pay others for their products and services. The workers and suppliers get less affluent over time and as the old saying goes “the rich get richer”.
WE collectively are enabling that to happen when we have what I call a “Wal-Mart philosophy of life”. We want to buy more things faster for the lowest price, ignoring the plight of the suppliers and workers who created those things. We let our local grocery, drug store, building supply and all the other small businesses go under to save a few dollars.
When we do not support them they go away and with them our options and our collective prosperity. We have returned to being indentured to the “company store” by our own greed. Only those who turn their back on debt and return to this simpler, less expensive and less consumer-driven economy will prosper as the economic decline continues.