posted on May, 10 2010 @ 10:12 AM
We can blame the people on food stamps for being on them. However, don't forget that only a few years ago many of these same people weren't using
food stamps as a way to make ends meet.
Real unemployment right now is over 20%.
Ask anyone if they had the opportunity to work at a job which provided enough for them to make a house payment, car payment, and feed their family...
I can't imagine very many men would turn it down.
The truth is that right now we are caught in an economic tide that is largely out of our individual control. Sometimes the people just give up
paddling and just hold on to a life preserver, because all the effort they have isn't enough to stop the river flowing.
The inflation central banks create whenever they create money changes the financial game every one of us is forced to play. If you're one of those
who lived within your means a few years ago, but not by much, you are likely to find those dollars you use to pay for things worth less and less.
What is a citizen supposed to do when their income increases by 3% per year, but prices go up 18% ? There is a limit for everyone, some earlier than
others, but don't blame the workers and consumers. Blame the people tilting the tables and rigging the game.
The prevailing monetary policies of the Fed determine whether money is easy or tight - that is, whether the monetization of government debt will be
sufficient to provide private borrowers with the amounts of money needed to pay what they owe to the banks, or whether it will fall short. These
actions by the Fed are largely responsible for the business cycle and periodic rounds of inflation and recession. Through the various mechanisms
under its control—interest rates on loans it makes to banks, purchase or sale of government securities, and setting bank reserve requirements—the
Fed has the power to decide whose interests will be favored and whose will be harmed.
The banks are continually making new loans and retiring old ones as they are repaid. In the aggregate, the debts owed to banks are increasing with
the mere passage of time, because interest accrues over time. The money available to repay those debts, however, can be created only by the banks as
they make additional loans.
The net requirement, then, is that banks must make new loans faster than they retire old loans, that is, there must be a continual expansion of bank
credit money. If there is not, the result is depression—increasing numbers of defaulted loans, greater numbers of bankruptcies, expanding
unemployment—and all the human misery that comes with it.
- Thomas Greco, Money: Understanding and Creating Alternatives to Legal Tender