Why the U.S. Must Declare Bankruptcy

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.

Related articles by Zemanta

• TRANSPARENCY UPDATE: Federal Reserve must disclose bank bailout records. “The Federal Reserve Boar… (pajamasmedia.com)
• Federal Reserve, Bloomberg Lawsuit: Court Rules Fed Must Reveal Details Of Secret Bank Loan Program (huffingtonpost.com)
• Appeals Court Rules Bank Loans Can Be Disclosed (abcnews.go.com)
• Staffing the Federal Reserve Board (seekingalpha.com)
• Money Supply Flood to Drown US Economy (citizeneconomists.com)
• Federal Reserve Must Disclose Bank Bailout Records (Update2) (businessweek.com)
• : Federal Reserve Must Disclose Bank Bailout Records (yzerfonteinchronicles.blogspot.com)
• True Fiscal Insanity: Creating Money to Buy Government Debt (citizeneconomists.com)
• U.S. keeps interest rates unchanged (cbc.ca)
• A Dovish Fed: Obama Casts His Vote (seekingalpha.com)