Our national debt is rapidly approaching 21 trillion dollars, and yet Congress wants to follow up a large tax cut bill with a massive increase in federal spending. This is absolute madness, and it is going to make our long-term financial problems as a nation far worse. After passing the tax bill, the appropriate thing to do would have been to cut federal spending. Yes, that would have not been a positive thing for the economy in the short-term, but we must start addressing our long-term priorities. If we do not do something about this exploding national debt, it could potentially destroy our republic all by itself.
Earlier today, I was absolutely horrified when I learned of a budget deal in the Senate that would increase federal spending by about 200 billion dollars in each of the next two years…
The Senate’s Republican and Democratic leaders unveiled a sweeping two-year budget agreement on Wednesday that would increase federal spending by hundreds of billions of dollars on domestic and defense programs alike.
That deal would eliminate strict budget caps, set in 2011 to reduce the federal deficit, and would allow Congress to spend about $200 billion more in the current fiscal year and in fiscal year 2019.
Our federal debt is going to hit 21 trillion dollars some time this year, and they want to throw hundreds of billions of dollars more spending on top of what we are already doing?
This alone is why we need true conservatives all over the nation to run for Congress. Our endless greed is literally destroying the bright future that our children and our grandchildren were supposed to have.
I don’t know if I even have the words to describe how foolish our leaders are being. If interest rates on government debt were to return to their long-term averages, the game would already be over. We should be desperately attempting to get our financial house in order, but instead we are spending money as if tomorrow will never come.
But tomorrow always arrives, and a day of reckoning is fast approaching.
Fortunately, there are some members of Congress that seem to understand that we cannot keep spending money that we do not have. The following comes from USA Today…
Rep. Mark Meadows, R-N.C., who chairs the hard-line House Freedom Caucus, wants to see what comes back from the Senate, said his spokesman Ben Williamson.
“But if the numbers are as high as we’re hearing, Rep. Meadows does not support the budget deal,” Williamson said.
Rep. Mo Brooks, R-Ala., said “this spending bill is a debt junkie’s dream… I’m not only a ‘no.’ I’m a ‘hell no.'”
As a member of Congress, I would always be a resounding “no” vote on these sorts of absurd budget deals.
Whatever happened to all of the strong fiscal conservatives that we sent to Congress during the days of the Tea Party movement? So many of them seem to have been enveloped by the swamp and are now doing whatever party leadership tells them to do.
Sadly, most Americans don’t even seem to understand that we have been adding more than a trillion dollars a year to the national debt since Barack Obama first entered the White House. The following is an extended excerpt from one of my previous articles…
When Barack Obama entered the White House, the U.S. national debt was just over 10.6 trillion dollars, and when he left the White House 8 years later it was sitting just shy of 20 trillion dollars.
So during those 8 years more than 9 trillion dollars was added to the national debt. But for purposes of this example we will round down to an even 9 trillion dollars.
When you divide 9 trillion dollars by 8, you get an average of 1.125 trillion dollars that was added to the national debt per year during the Obama era.
Dividing that figure by 365, you find that an average of $3,082,191,780 was added to the national debt every single day during the Obama administration.
And since there are 24 hours in a day, that means that an average of $128,424,657 was stolen from our children and our grandchildren every single hour of every single day while Barack Obama was president.
Under President Trump, we should be dramatically reducing federal spending and the size of the federal government.
Yes, this would hurt the economy in the short-term, but if we continue down the road we are currently on it is a recipe for national suicide.
As interest rates rise, it won’t be too long before we are paying more than a trillion dollars a year just in interest on the national debt. And when America plunges into a debt nightmare, there won’t be anyone in the entire world big enough to bail us out.
America cannot be great again if we are drowning in debt. What is happening in Washington is utter madness, and it should greatly anger all of us that our irresponsible politicians are systematically destroying the greatest republic that the world has ever seen.
Once upon a time the United States had the largest and most vibrant middle class in the history of the world, but now the middle class is steadily being eroded. The middle class became a minority of the population for the first time ever in 2015, and just recently I wrote about a new survey that showed that 78 percent of all full-time workers in the United States live paycheck to paycheck at least part of the time. But most people still want to live the American Dream, and so they are going into tremendous amounts of debt in a desperate attempt to live that kind of a lifestyle.
According to the Federal Reserve, the average U.S. household is now $137,063 in debt, and that figure is more than double the median household income…
The average American household carries $137,063 in debt, according to the Federal Reserve’s latest numbers.
Yet the U.S. Census Bureau reports that the median household income was just $59,039 last year, suggesting that many Americans are living beyond their means.
As a nation, we are completely and utterly drowning in debt. U.S. consumers are now nearly 13 trillion dollars in debt overall, and many will literally spend the rest of their lives making debt payments.
Over the past couple of decades, the cost of living has grown much faster than paychecks have, and this has put a tremendous amount of financial stress on hard working families. We are told that we are in a “low inflation environment”, but that is simply not true at all…
Medical expenses have grown 57% since 2003, while food and housing costs climbed 36% and 32%, respectively. Those surging basic expenses could widen the inequality gap in America, as a quarter of Americans make less than $10 per hour.
Getting our healthcare costs under control is one of the biggest things that we need to do. As I talked about the other day, some families have seen their health insurance premiums more than triple since Obamacare became law.
As the cost of living continues to rise, an increasing number of young people are discovering that the only way that they can make ends meet is to live with their parents. As a result, the percentage of adults age 26 to age 34 that live at home continued to rise even after the last recession ended…
The share of older Millennials living with relatives is still rising, underscoring the lingering obstacles faced by Americans who entered the workforce during and after the Great Recession.
About 20% of adults age 26 to 34 are living with parents or other family members, a figure that has climbed steadily the past decade and is up from 17% in 2012, according to an analysis of Census Bureau data by Trulia, a real estate research firm.
A staggering 59.8 percent of younger Millennials (18 to 25) are now living with relatives, and overall an all-time record 38.4 percent of all Millennials are currently living with family.
If so many of our young people are unable to live the American Dream, what is the future of this nation going to look like?
Consumers are not the only ones that have been struggling to make ends meet. Corporate debt has doubled since the last financial crisis, and it now stands at a record high of 8.7 trillion dollars…
Fueled by low interest rates and strong investor appetite, debt of nonfinancial companies has increased at a rapid clip, to $8.7 trillion, and is equal to more than 45 percent of GDP, according to David Ader, chief macro strategist at Informa Financial Intelligence.
According to the Federal Reserve, nonfinancial corporate debt outstanding has grown by $1 trillion in two years.
“Everything is fine until it isn’t,” Ader said. “We don’t need to worry about that until we’re in a slowdown and profit declines.”
And let us not forget government debt. State and local governments all over the nation have piled up record amounts of debt, and the debt of the federal government has approximately doubled over the past decade.
But the fact that we are now 20 trillion dollars in debt as a nation does not tell the full story. According to Boston University professor Larry Kotlikoff, the federal government is facing a fiscal gap of 210 trillion dollars over the next 75 years…
We have all these unofficial debts that are massive compared to the official debt. We’re focused just on the official debt, so we’re trying to balance the wrong books…
If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $210 trillion. That’s the fiscal gap. That’s our true indebtedness.
We were the wealthiest and most prosperous nation in the history of the planet, but that was never good for us.
We always had to have more, and so we have been on the greatest debt binge in human history.
Now a day of reckoning is fast approaching, and those that believe that we can escape the consequences of our actions are being extremely delusional.
Wouldn’t it be great if Congress was absolutely packed with strong constitutional conservatives that consistently fought for true conservative values? It has been said that our government is a reflection of who we are as a people, and the only way that we are going to take our government back is if we fight for it. I have talked to so many conservatives that are sick and tired of being betrayed by “Republicans in name only” over and over again, but the only way that we are going to break this cycle is if good people start running and if we get behind them. Personally, I am in a very tight race in Idaho’s first congressional district, and the only way that I can win is if it is a total team effort. There is no way that I can do this alone, and fortunately we have had some absolutely extraordinary people get involved in the campaign as volunteers. But if you don’t have the time to serve as a volunteer, you can still contribute to the campaign in other ways. Today we are launching our “2016 Money Bomb”, and the deadline for participating is November 30th. If you would like to donate, you can do so here…
Our first tier goal for the money bomb is $4,500, which will help us cover the cost of desperately needed campaign materials. The good news is that there is an overwhelming demand for campaign materials all over the district, but now we are running low on almost everything. Our county chairs are telling us that they need more signs, more bumper stickers and more brochures, and we are working hard to get them everything that they need.
Our second tier goal for the money bomb is $15,000, which will help us get our message directly to the voters. Thanks to cutting edge voter outreach technology, we can reach voters much more cheaply than my opponents can. For just $17, we can get our message out to 200 voters or more, and every vote is going to count in this very tight race. Our goal is 50,000 votes, and if we reach that goal we are definitely going to win this election.
Our third tier goal for the money bomb is $25,000, and if we hit that goal we are going to be able to create an unbelievable amount of momentum for our campaign. None of my five opponents has raised very much money yet, and if we can raise $25,000 during our “2016 Money Bomb”, that is going to be a gamechanger.
One of the things that we need resources for is to create higher quality videos. If you want to get an idea of what we have done so far, check out this YouTube video…
This kind of raw video is really resonating with voters, but we can do so much better. We just need help to get there.
Previously, I never understood why politicians seemed to be fundraising all the time. I always figured that they should be spending their time in more productive ways, but now that I am immersed in this campaign I understand. In order to turn this country around, we have got to get our message out to the voters, and the only way that we can get our message out to the voters is if we have the resources to do it.
A lot of people out there don’t understand that we don’t just vote at the voting box. We vote with our dollars too, and right now Democrats and establishment Republicans are giving millions upon millions of dollars to their candidates for the 2018 elections.
If we are going to get back to the U.S. Constitution and restore our liberties and freedoms, we have got to fight fire with fire. We can’t sit back and wait for someone else to take action, because that is what way too many true conservatives have been doing for decades. The other side wants us to believe that it is hopeless and that we can never change the system. But I believe that we can make dramatic changes if we will just work together.
If every one of my readers donated just $10 to the campaign, we would raise more money than all of the other candidates combined and it would be virtually impossible for any of them to win.
Most of us don’t think twice about spending ten dollars at a fast food place for lunch, and so why wouldn’t we invest at least that much in saving the country?
This is our campaign, because we are all in this together. Everyone that has volunteered, donated or contributed in some other way is invested in this campaign, and we need more help. We are literally in a struggle for what the future of this country is going to look like for our children and our grandchildren, and if you would like to join our efforts you can do so right here…
I am going to keep fighting for America as hard as I can every single day, and I am praying for more people to rally to our cause. If you haven’t already done so, please read over the following 22 points and prayerfully consider getting involved in our campaign…
#1 A Pro-Trump Christian Conservative – Michael is the most conservative candidate in this race, and he is proud to stand with President Trump.
#2 It’s Time To Drain The Swamp – The same rules that apply to the rest of us should also apply to Congress, and Michael is going to fight hard to clean up the corruption in Washington.
#3 Every RINO Must Go – Way too many Republicans have been fighting Trump’s agenda and acting like Democrats. It is time to hold them accountable, and that means every ‘Republican in name only’ needs to go.
#4 100% Pro-Life – No money for Planned Parenthood ever. Nearly 60 million babies have been murdered since 1973, and Michael is making an unbreakable pledge to vote against any bill that funds Planned Parenthood 100% of the time.
#5 100% Pro-Gun – The Constitution says that the right of the people to keep and bear arms shall not be infringed. Michael believes that every American has a constitutional right to carry a gun, and he will never back down from defending the Second Amendment even a single inch.
#6 Abolish The IRS & The Income Tax – We didn’t have an income tax from 1872 to 1913, and that was the greatest period of economic growth in U.S. history. As we fight a long-term battle to abolish the income tax, in the short-term we can at least go to a flat tax or a fair tax, both of which would be far superior to what we have now.
#7 Abolish The Federal Reserve – Since the Fed was created in 1913, we have had 18 recessions, the value of the U.S. dollar has fallen by about 98 percent, and the U.S. national debt has gotten more than 6000 times larger. Abolishing this debt-based system is one of the keys to a bright economic future for America.
#8 Getting Federal Bureaucrats Off Our Backs – Michael will work to get the federal government off of the backs of our farmers, our loggers, our miners, our ranchers and our small business owners.
#9 Local Control Of Education – It is time to get the federal government out of the education business. Michael wants to abolish Common Core and the Department of Education, and he wants control over education to be as close to the local level as possible.
#10 Shut Down Big Brother Spying – Government agencies have been conducting unconstitutional surveillance of American citizens for decades, and that needs to stop now.
#11 True Limited Government – President Trump has proposed shutting down more than 60 different government programs and agencies. That would be a good start. Instead of asking which government agencies we should close, we should be asking which government agencies really need to remain open.
#12 100% Repeal Of Obamacare – Rapidly rising health insurance premiums are financially crippling Idaho families. Republicans in Congress have fumbled the ball, and we must repeal Obamacare immediately.
#13 Build The Wall – We need to make sure that everyone comes into this country through the front door. We must end illegal immigration, and so Michael supports President Trump’s call to build a wall on the southern border.
#14 Supporting Our Veterans – Michael’s father is a vet, and Michael will work passionately to make sure that our veterans receive the respect, care and support that they deserve.
#15 Fighting Islamic Terror – Michael fully supports the fight against ISIS, and he will push for legislation that would give local communities all over America the option to say no to refugees from terrorist hotbeds.
#16 Stopping Reckless Government Spending – We are 20 trillion dollars in debt and we continue to steal more than 100 million dollars from future generations every single hour of every single day.
#17 Bringing Jobs Back To America – The U.S. has lost more than 70,000 factories since China joined the WTO in 2001. Our formerly great manufacturing cities now look like war zones, and we desperately need to start making things in this country once again.
#18 Resisting The Globalists – We must strongly fight all attempts by the globalists to erode American sovereignty.
#19 Supporting States Rights – It is almost as if the 10th Amendment doesn’t even exist today. If Michael is elected, this is what his message to the feds will be: ‘Hand over the keys and get out of Idaho’.
#20 Removing The Wolves – Under Bill Clinton, Canadian gray wolves were brought to Idaho. These wolves travel in packs and are killing machines. Michael is 100% committed to removing these wolves from our state.
#21 Holding Judges Accountable – Federal judges that disregard the U.S. Constitution and that choose to legislate from the bench should be subject to impeachment.
#22 An Unashamed Christian – Michael is not ashamed to say that he is a Bible-believing Christian, and if we truly want to make America great again we need to return to the values and principles that this nation was founded upon.
Is this the kind of platform that you can get behind?
If I win, this is only going to be just the beginning. We have already been talking about a national effort to help true conservative candidates win races all around the country. It won’t be easy, but I believe that if we all work together that we can take our government back.
But first we need to win this election, and right now it is a totally wide open race. If you would like to help, here are three immediate ways that you can do so…
1. We need an army of fundraisers – We need people all across America to help us bring in resources for this campaign. Even if you just want to help with mailings, we can get you started right away. Just contact us on our volunteer page and we will guide you through exactly what needs to be done.
2. We need an army of “social media warriors” – Social media is a key battleground for this campaign, and we need a whole host of people from all over the nation to get involved. If you only have a small amount of time, you can greatly help us by liking, sharing and commenting on the material on our official Facebook campaign page on a daily basis. Beyond that, there is so much to be done, and if you want to get involved please contact us.
3. We need more financial contributors – Democrats tend to recruit volunteers easily because many of their supporters tend to have a lot of “free time” on their hands. But conservatives are usually hard at work trying to make a living, and so many of our supporters simply don’t have that much time to put into political campaigns. If you can’t volunteer, you can still be a huge part of what we are doing by becoming a donor…
I want to thank everyone out there that has already been praying, volunteering and contributing. This is a total team effort, and I am so thankful that this campaign has brought us all together.
We now have less than 6 months to go before election day on May 15th, and it is going to be a mad sprint to the finish line. If everybody gets involved, there is no way that we can lose, and so I am asking for your help today.
The federal government is now 20.4 trillion dollars in debt, and most Americans don’t seem to care that the economic prosperity that we are enjoying today could be completely destroyed by our exploding national debt. Over the past decade, the national debt has been growing at a rate of more than 100 million dollars an hour, and this is a debt that all of us owe. When you break it down, each American citizen’s share of the debt is more than $60,000, and so if you have a family of five your share is more than $300,000. And when you throw in more than 6 trillion dollars of corporate debt and nearly 13 trillion dollars of consumer debt, it is not inaccurate to say that we are facing a crisis of unprecedented magnitude.
Debt cannot grow much faster than GDP indefinitely. At some point the bubble bursts, and when it does the pain that the middle class is going to experience is going to be off the charts. Back in 2015, the middle class in the U.S. became a minority of the population for the first time ever. Never before in our history has the middle class accounted for less than 50 percent of the population, and all over the country formerly middle class families are under a great deal of stress as they attempt to make ends meet. The following comes from an absolutely outstanding piece that was just put out by Charles Hugh Smith…
If you talk to young people struggling to make ends meet and raise children, or read articles about retirees who can’t afford to retire, you can’t help but detect the fading scent of prosperity.
It has steadily been lost to stagnation, under-reported inflation and soaring inequality, a substitution of illusion for reality bolstered by the systemic corruption of authentic measures of prosperity and well-being.
In other words, the American-Dream idea that life should get easier and more prosperous as the natural course of progress is still embedded in our collective memory, even though the collective reality has changed.
The reality that most of us are facing today is a reality where many are working two or three jobs just to make it from month to month.
The reality that most of us are facing today is a reality where debts never seem to get repaid and credit card balances just continue to grow.
The reality that most of us are facing today is a reality where we work day after day just to pay the bills, and yet we never seem to get anywhere financially.
The truth is that most people out there are deeply struggling. The Washington Post says that the “middle class” encompasses anyone that makes between $35,000 and $122,500 a year, but very few of us are near the top end of that scale…
It’s also situation specific. “The more people in a family, the more money they typically need to live a comfortable middle-class lifestyle,” writes the Post. Likewise, the more expensive your area, the more you need to make to qualify. Overall, “America’s middle-class ranges from $35,000 to $122,500 in annual income, according to The Post’s calculation” approved by the Pew Research Center.
“The bottom line is: $100,000 is on the middle-class spectrum, but barely: 75 percent of U.S. households make less than that,” writes the Post.
In a previous article, I noted that the bottom 90 percent of income earners in the U.S. brought home more than 60 percent of the nation’s income back in the early 1970s, but last year that number fell to just 49.7 percent.
The middle class is shrinking year after year, and the really bad news is that it appears that this decline may soon accelerate. In fact, one major European investment bank is warning that the U.S. economy will “slow down substantially” in 2018.
But we can’t afford any slow down at all. As it is, there is no possible way that we are going to be able to deal with our exploding debts at the rate the economy is growing right now. According to Boston University professor Larry Kotlikoff, we are facing a “fiscal gap” of 210 trillion dollars over the next 75 years…
We have all these unofficial debts that are massive compared to the official debt. We’re focused just on the official debt, so we’re trying to balance the wrong books…
If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $210 trillion. That’s the fiscal gap. That’s our true indebtedness.
Where in the world is all of that money going to come from?
Are you willing to pay much higher taxes?
Are you willing to see government programs slashed to a degree that we have never seen before in U.S. history?
If your answer to both of those questions is no, then what would you do to solve the fiscal nightmare that we are facing?
According to Brian Maher, author Robert Benchley once sat down to write an article about this fiscal mess, and what he came up with sums up the situation perfectly…
Benchley sat at his typewriter one day to tackle a vexing subject.
He opened his piece with “The”… when the full weight of his burden collapsed upon his shoulders.
He abandoned his typewriter in frustration.
He returned shortly thereafter and resumed the task anew…
With only “The” to work with… Benchley immediately knocked out the article, presented here in its entirety:
“The hell with it.”
Unfortunately, we can’t afford to say that.
Our exploding debt is a crisis that we must tackle, and the first step is to understand that our current financial system was literally designed to create as much debt as possible. Once we abolish the Federal Reserve, our endless debt spiral will end, but until we do our debt problems are only going to continue to grow until the system completely implodes in upon itself.
Even though the nations of the world are very deeply divided on almost everything else, somehow virtually all of them have been convinced that central banking is the way to go. Today, less than 0.1% of the population of the world lives in a country that does not have a central bank. Do you think that there is any possible way that this is a coincidence? And it is also not a coincidence that we are now facing the greatest debt bubble in the history of the world. In Part I of this series, I discussed the fact that total global debt has reached 217 trillion dollars. Once you understand that central banks are designed to create endless debt, and once you understand that 99.9% of the global population lives in a country that has a central bank, then it finally makes sense why we have accumulated so much debt. The elite of the world use debt as a tool of enslavement, and central banking has allowed them to literally enslave the entire planet.
Some of you may not be familiar with how a “central bank” differs from a normal bank. The following definition of a “central bank” comes from Wikipedia…
Over the past 100 years or so, we have seen central banks steadily be established all over the planet. At this point, there are just 8 very small nations that still do not have a central bank…
-Federated States of Micronesia
When you add the populations of those 8 nations together, it comes to much less than 0.1% of the global population.
But even though central banking is nearly universal, only a very small fraction of the global population can tell you how money is created.
Do you know where money comes from?
Here in the United States, most people just assume that the federal government creates money. But that is not true at all.
Many are absolutely shocked when they discover that U.S. currency is actually borrowed into existence. The federal government gives U.S. Treasury bonds (debt) to the Federal Reserve in exchange for money that the Federal Reserve creates out of thin air. The Federal Reserve then auctions off those bonds to the highest bidder.
Since the federal government must pay interest on those bonds, the amount of debt that is created in these transactions is actually greater than the amount of money that is created. But we are told that if we can just circulate the money throughout our economy fast enough and tax it at a high enough rate, then we can eventually pay off the debt. Of course that never actually happens, and so the federal government always has to go back and borrow even more money. This is called a debt spiral, and at this point we will never be able to escape it until we do away with this horrible system.
But why does our government (or any government for that matter) have to borrow money that is created by a central bank in the first place?
Why can’t governments just create money themselves?
Oops. That is the big secret that nobody is supposed to talk about.
Theoretically, the U.S. government doesn’t actually have to borrow a single penny. Instead of borrowing money the Federal Reserve creates out of thin air, the federal government could just create money directly and spend it into circulation.
Yes, this could actually happen. Back in 1963, President John F. Kennedy signed Executive Order 11110 which authorized the U.S. Treasury to issue debt-free “United States Notes” which were not created by the Federal Reserve. These debt-free notes began to be issued, and you can still find them for sale on eBay today. Unfortunately, President Kennedy was assassinated shortly after this executive order was issued, and the notes were not in production for long.
If we had ultimately fully adopted “United States Notes” and had phased out Federal Reserve notes, we would not be 20 trillion dollars in debt today.
The elite of the world love to get national governments deep into debt, because it enables them to enslave entire populations while making an obscene amount of money in the process.
Back in 1913, an insidious plan was rushed through Congress just before Christmas that was based on a blueprint that had been developed by very powerful Wall Street interests. Author G. Edward Griffin did an extraordinary job of documenting how all of this happened in his book entitled “The Creature from Jekyll Island: A Second Look at the Federal Reserve”. A central bank was established, and it was purposely designed to create a government debt spiral, and that is precisely what happened.
Since 1913, the size of the national debt has gotten more than 6,000 times larger, and the value of our dollar has declined by more than 98 percent. Many conservatives are still under the illusion that we could get out of debt someday if we just grow the economy fast enough, but I have shown in another article that we have gotten to the point where this is mathematically impossible.
And most people are also operating under the false assumption that the Federal Reserve is part of the federal government. But that is not accurate either. The following comes from one of my previous articles…
There is often a lot of confusion about the Federal Reserve, because a lot of people think that it is simply an agency of the federal government. But of course that is not true at all. In fact, as Ron Paul likes to say, the Federal Reserve is about as “federal” as Federal Express is.
The Fed is an independent central bank that has even argued in court that it is not an agency of the federal government. Yes, the president appoints the leadership of the Fed, but the Fed and other central banks around the world have always fiercely guarded their “independence”. On the official Fed website, it is admitted that the 12 regional Federal Reserve banks are organized “much like private corporations”, and they very much operate like private entities. They even issue shares of stock to the private banks that own them.
In case you were wondering, the federal government has zero shares.
According to the U.S. Constitution, a private central banking cartel should not be issuing our currency. In Article I, Section 8 of our Constitution, Congress is solely given the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.
So why in the world has this authority been given to a central bank?
The truth is that we do not need a central bank.
From 1872 to 1913, there was no central bank and no income tax, and it turned out to be the greatest period of economic growth in all of U.S. history.
But since the Fed was established, there have been 18 different recessions or depressions: 1918, 1920, 1923, 1926, 1929, 1937, 1945, 1949, 1953, 1958, 1960, 1969, 1973, 1980, 1981, 1990, 2001, 2008.
As I discussed yesterday, the elite use debt to enslave all of the rest of us, and central banking allows them to literally dominate the entire planet.
Until we abolish this debt-based system and go to a currency that is debt-free, we are never going to permanently solve our very deep long-term economic and financial problems.
But because they are so immensely wealthy, the elite are able to wield extraordinary influence in our society. They control the mainstream media, our politicians and even global institutions such as the United Nations. Anyone that would dare to question the validity of the current system is marginalized, and for a long time very few politicians around the world were even willing to speak out against central banking.
However, that is starting to change. A new generation of leaders is rising up, and they are absolutely determined to break the stranglehold that the elite have on our society. It won’t be easy, but if we are able to wake enough people up, I believe that we will eventually be able to free ourselves from this insidious system.
Throughout human history, those in the ruling class have found various ways to force those under them to work for their economic benefit. But in our day and age, we are willingly enslaving ourselves. The borrower is the servant of the lender, and there has never been more debt in our world than there is right now. According to the Institute of International Finance, global debt has hit the 217 trillion dollar mark, although other estimates would put this number far higher. Of course everyone knows that our planet is drowning in debt, but most people never stop to consider who owns all of this debt. This unprecedented debt bubble represents that greatest transfer of wealth in human history, and those that are being enriched are the extremely wealthy elitists at the very, very top of the food chain.
Did you know that 8 men now have as much wealth as the poorest 3.6 billion people living on the planet combined?
Every year, the gap between the planet’s ultra-wealthy and the poor just becomes greater and greater. This is something that I have written about frequently, and the “financialization” of the global economy is playing a major role in this trend.
The entire global financial system is based on debt, and this debt-based system endlessly funnels the wealth of the world to the very, very top of the pyramid.
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Whether he actually made that statement or not, the reality of the matter is that it is quite true. By getting all of the rest of us deep into debt, the elite can just sit back and slowly but surely become even wealthier over time. Meanwhile, as the rest of us work endless hours to “pay our bills”, the truth is that we are spending our best years working to enrich someone else.
Much has been written about the men and women that control the world. Whether you wish to call them “the elite”, “the establishment” or “the globalists”, the truth is that most of us understand who they are. And how they control all of us is not some sort of giant conspiracy. Ultimately, it is actually very simple. Money is a form of social control, and by getting the rest of us into as much debt as possible they are able to get all of us to work for their economic benefit.
It starts at a very early age. We greatly encourage our young people to go to college, and we tell them to not even worry about what it will cost. We assure them that there will be great jobs available for them once they finish school and that they will have no problem paying off the student loans that they will accumulate.
Well, over the past 10 years student loan debt in the United States “has grown 250 percent” and is now sitting at an absolutely staggering grand total of 1.4 trillion dollars. Millions of our young people are already entering the “real world” financially crippled, and many of them will literally spend decades paying off those debts.
But that is just the beginning.
In order to get around in our society, virtually all of us need at least one vehicle, and auto loans are very easy to get these days. I remember when auto loans were only made for four or five years at the most, but in 2017 it is quite common to find loans on new vehicles that stretch out for six or seven years.
The total amount of auto loan debt in the United States has now surpassed a trillion dollars, and this very dangerous bubble just continues to grow.
If you want to own a home, that is going to mean even more debt. In the old days, mortgages were commonly 10 years in length, but now 30 years is the standard.
By the way, do you know where the term “mortgage” originally comes from?
If you go all the way back to the Latin, it actually means “death pledge”.
And now that most mortgages are for 30 years, many will continue making payments until they literally drop dead.
Sadly, most Americans don’t even realize how much they are enriching those that are holding their mortgages. For example, if you have a 30 year mortgage on a $300,000 home at 3.92 percent, you will end up making total payments of $510,640.
Credit card debt is even more insidious. Interest rates on credit card debt are often in the high double digits, and some consumers actually end up paying back several times as much as they originally borrowed.
According to the Federal Reserve, total credit card debt in the United States has also now surpassed the trillion dollar mark, and we are about to enter the time of year when Americans use their credit cards the most frequently.
Overall, U.S. consumers are now nearly 13 trillion dollars in debt.
As borrowers, we are servants of the lenders, and most of us don’t even consciously understand what has been done to us.
In Part I, I have focused on individual debt obligations, but tomorrow in Part II I am going to talk about how the elite use government debt to corporately enslave us. All over the planet, national governments are drowning in debt, and this didn’t happen by accident. The elite love to get governments into debt because it is a way to systematically transfer tremendous amounts of wealth from our pockets to their pockets. This year alone, the U.S. government will pay somewhere around half a trillion dollars just in interest on the national debt. That represents a whole lot of tax dollars that we aren’t getting any benefit from, and those on the receiving end are just becoming wealthier and wealthier.
In Part II we will also talk about how our debt-based system is literally designed to create a government debt spiral. Once you understand this, the way that you view potential solutions completely changes. If we ever want to get government debt “under control”, we have got to do away with this current system that was intended to enslave us by those that created it.
We spend so much time on the symptoms, but if we ever want permanent solutions we need to start addressing the root causes of our problems. Debt is a tool of enslavement, and the fact that humanity is now more than 200 trillion dollars in debt should deeply alarm all of us.
Don’t worry – even though the employment numbers are terrible the mainstream media insists that everything is going to be wonderful for the U.S. economy in the months ahead. According to the Bureau of Labor Statistics, the U.S. economy lost 33,000 jobs during September. That was the first monthly decline in seven years, and as you will see below, overall 2017 is on pace for the slowest employment growth in at least five years. But the Bureau of Labor Statistics insists that the downturn in September was due to the chaos caused by Hurricane Harvey and Hurricane Irma, and they are assuring us that happier times are right around the corner.
Economists were projecting that we would see an increase of around 80,000 jobs last month, and we need to add at least 150,000 jobs each month just to keep up with population growth. So the -33,000 number was a huge disappointment.
But even though we lost 33,000 jobs last month, the Bureau of Labor Statistics says that the unemployment rate fell from 4.4 percent to 4.2 percent.
Yes, I know that doesn’t make any sense at all, but that is what they are telling us.
Perhaps if several volcanoes go off inside this country, terrorists detonate a dirty bomb in one of our major cities and Godzilla invades the west coast next month the unemployment rate will drop all the way to zero.
Of course I am being facetious, but I just want to point out the absurdity of what we are being told. There is no way in the world that the official unemployment rate should be at “a new 16-year low”.
In the end, perhaps September will end up being a bit of an anomaly. But as I mentioned above, we have been witnessing a broader trend build for months. According to CNBC, we are on pace for “the slowest jobs growth in at least five years”…
In addition to September’s rough month, the July number was revised lower from 189,000 to 138,000 though August got a bump higher from 156,000. In all, though, 2017 thus far has seen the slowest jobs growth in at least five years.
Let that sink in for a moment.
Employment is not booming. In fact, things haven’t been this slow “in at least five years”. An economic slowdown is here, and yet most people are totally oblivious to what is happening.
And let me share something else with you. The following chart shows the average duration of unemployment since the late 1940s…
This chart shows that workers remain unemployed far longer than they did in the “good old days”, but I want you to pay special attention to the very end of the chart.
The duration of unemployment is really starting to spike up again quite dramatically, and that is a very, very troubling sign for the U.S. economy overall, because spikes in this number almost always correspond with recessions.
But the Bureau of Labor Statistics says that we don’t have anything to be concerned about. In fact, they are blaming all of the bad numbers from last month on Harvey and Irma…
Our analysis suggests that the net effect of these hurricanes was to reduce the estimate of total nonfarm payroll employment for September. There was no discernible effect on the national unemployment rate. No changes were made to either the establishment or household survey estimation procedures for the September figures. For both surveys, collection rates generally were within normal ranges, both nationally and in the affected states. In the establishment survey, employees who are not paid for the pay period that includes the 12th of the month are not counted as employed. In the household survey, persons with a job are counted as employed even if they miss work for the entire survey reference week (the week including the 12th of the month), regardless of whether or not they are paid. For both surveys, national estimates do not include Puerto Rico or the U.S. Virgin Islands.
“Despite the decline (in job gains), it’s really clear that the labor market remains in good shape,” says Joel Naroff of Naroff Economic Advisors.
The unemployment rate, which is calculated from a different survey than the headline job totals, edged lower. That’s because gains in the number of people employed outpaced an increase in the labor force, which includes people working and looking for jobs. In that survey of households, workers are counted as employed even if they were temporarily idled by the storms.
Hopefully they are right.
Hopefully happy times are here again and an economic boom is right around the corner.
We have been able to maintain our ridiculously inflated standard of living for an extended period of time by borrowing absolutely colossal mountains of money year after year. But no debt bubble lasts forever, and this one will not either.
The debt-fueled “prosperity” that we see all around us today is an enormous temporary illusion, and when the illusion collapses the economic pain is going to be greater than anything we have ever seen before in modern American history.
When people are dependent on the government they are much easier to control. We are often told that we are not “compassionate” when we object to the endless expansion of government social programs, but that is not how the debate should be framed. In America today, well over 100 million people receive money from the federal government each month, and the number of Americans that are truly financially independent is continually shrinking. In fact, only 25 percent of all Americans have more than $10,000 in savings right now according to one survey. If we eventually get to the point where virtually all of us are dependent on the government for our continued existence, that would give the globalists a very powerful tool of control. In the end, they want as many of us dependent on the government as possible, because those that are dependent on the government are a lot less likely to fight against their agenda.
Back in 1992, the bottom 90 percent of American income earners brought in more than 60 percent of the country’s income. But last year that figure slipped to just 49.7 percent. The wealth of our society is increasingly being concentrated at the very top, and the middle class is steadily being eroded. Surveys have found that somewhere around two-thirds of the country is living paycheck to paycheck at least part of the time, and so living on the edge has become a way of life for most Americans.
Earlier today, I came across a Business Insider article that was bemoaning the fact that the U.S. economy seems to be rather directionless at this point…
We do not have a real plan for health care, and costs continue to gobble up American wages.
We do not have a plan for dealing with globalization and economic change, but that change continues to shape our economy.
We don’t have a plan to update our decrepit infrastructure.
The one plan we did have — the Federal Reserve’s post-financial crisis program — is about to be unwound, marking the end of the last clear, executable plan to bolster America’s economy.
Ultimately, the truth is that we don’t actually need some sort of “central plan” for our economy. We are supposed to be a free market system that is not guided and directed by central planners, but many Americans don’t even understand the benefits of free market capitalism anymore.
However, that Business Insider article did make a great point about globalization. Most people don’t realize that our economy is slowly but surely being integrated into a global economic system. This is really bad for American workers, because now they are being merged into a global labor pool in which they must compete directly for jobs with workers in other countries where it is legal to pay slave labor wages.
Even down in Mexico, many autoworkers are only making $2.25 an hour…
Most of the workers at the new Audi factory in the state of Puebla, inaugurated in 2016 and assembling the Audi Q4 SUV, which carries a sticker price in the US of over $40,000 for base versions, make $2.25 an hour, according to the Union.
Volkswagen, which owns Audi, started building Beetles in Puebla in 1967 and has since created a vast manufacturing empire in Mexico, with vehicles built for consumers in Mexico, the US, Canada, and Latin American markets.
Volkswagen, Ford, GM, or any of the global automakers, which can manufacture just about anywhere in the world, always search for cheap labor to maximize the bottom line.
Would you want to work for $2.25 an hour?
Over time, millions of good paying jobs have been leaving high wage countries and have been going to low wage countries. The United States has lost more than 70,000 manufacturing facilities since China joined the WTO, and this is one of the biggest factors that has eroded the middle class.
In a desperate attempt to maintain our standard of living, we have gone into increasing amounts of debt. Of course our federal government is now 20 trillion dollars in debt, but on an individual level we are doing the same thing. Today, American consumers are over 12 trillion dollars in debt, and it gets worse with each passing day.
The borrower is the servant of the lender, and most Americans have become debt slaves at this point. This is something that Paul Craig Roberts commented on recently…
Americans carry on by accumulating debt and becoming debt slaves. Many can only make the minimum payment on their credit card and thus accumulate debt. The Federal Reserve’s policy has exploded the prices of financial assets. The result is that the bulk of the population lacks discretionary income, and those with financial assets are wealthy until values adjust to reality.
As an economist I cannot identify in history any economy whose affairs have been so badly managed and prospects so severely damaged as the economy of the United States of America. In the short/intermediate run policies that damage the prospects for the American work force benefit what is called the One Percent as jobs offshoring reduces corporate costs and financialization transfers remaining discretionary income in interest and fees to the financial sector. But as consumer discretionary incomes disappear and debt burdens rise, aggregate demand falters, and there is nothing left to drive the economy.
This debt-based system continuously funnels wealth toward the very top of the pyramid, because it is the people at the very top that hold all of the debts.
Each year it gets worse, and most Americans would be absolutely stunned to hear that the top one percent now control 38.6 percent of all wealth in the United States…
The richest 1% of families controlled a record-high 38.6% of the country’s wealth in 2016, according to a Federal Reserve report published on Wednesday.
That’s nearly twice as much as the bottom 90%, which has seen its slice of the pie continue to shrink.
The bottom 90% of families now hold just 22.8% of the wealth, down from about one-third in 1989 when the Fed started tracking this measure.
So how do we fix this?
Well, the truth is that we need to go back to a non-debt based system that does not funnel all of the wealth to the very top of the pyramid. Unfortunately, most Americans don’t even realize that our current debt-based system is fundamentally flawed, and it will probably take an unprecedented crisis in order to wake people up enough to take action.
Venezuela is the 11th largest oil producing country in the entire world, and it has just announced that it is going to stop using the petrodollar. Most Americans don’t even know what the petrodollar is, but for those of you that do understand what I am talking about, this should send a chill up your spine. The petrodollar is one of the key pillars of the global financial system, and it allows us to live a far higher standard of living than we actually deserve. The dominance of the petrodollar has been very jealously guarded by our government in the past, and that is why many are now concerned that this move by Venezuela could potentially lead us to war.
I don’t know why this isn’t headline news all over the country, but it should be. One of the few major media outlets that is reporting on this is the Wall Street Journal…
The government of this oil-rich but struggling country, looking for ways to circumvent U.S. sanctions, is telling oil traders that it will no longer receive or send payments in dollars, people familiar with the new policy have told The Wall Street Journal.
Before we go any further, we should discuss what we mean by the “petrodollar” for those that are not familiar with the concept. The following comes from an excellent article by Christopher Doran…
In a nutshell, any country that wants to purchase oil from an oil producing country has to do so in U.S. dollars. This is a long standing agreement within all oil exporting nations, aka OPEC, the Organization of Petroleum Exporting Countries. The UK for example, cannot simply buy oil from Saudi Arabia by exchanging British pounds. Instead, the UK must exchange its pounds for U.S. dollars. The major exception at present is, of course, Iran.
This means that every country in the world that imports oil—which is the vast majority of the world’s nations—has to have immense quantities of dollars in reserve.
As will be explained below, the fact that virtually everyone around the world has to use our currency to buy oil is a massive advantage for us. Venezuela knows this, and so in response to new sanctions being imposed upon them, they are hitting us where it hurts…
Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros.
The state oil company Petróleos de Venezuela SA, known as PdVSA, has told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner.
The new payment policy hasn’t been publicly announced, but Vice President Tareck El Aissami, who has been blacklisted by the U.S., said Friday, “To fight against the economic blockade there will be a basket of currencies to liberate us from the dollar.”
If more nations start to follow suit, it would be absolutely disastrous for the United States.
In other articles, I have detailed why the petrodollar is so incredibly important to our economy and our financial system. The following is an extended excerpt from one of those previous articles…
Well, it creates a tremendous amount of demand for the U.S. dollar all over the globe. Since everyone has needed it to trade with one another, that has created an endless global appetite for the currency. That has kept the value of the dollar artificially high, and it has enabled us to import trillions of dollars of super cheap products from other countries. If other nations stopped using the dollar to trade with one another, the value of the dollar would plummet dramatically and we would have to pay much, much more for the trinkets that we buy at the dollar store and Wal-Mart.
In addition, since the U.S. dollar is essentially the de facto global currency, this has also increased demand for our debt. Major exporting nations such as China and Saudi Arabia end up with giant piles of our dollars. Instead of just letting them sit there and do nothing, those nations often reinvest their dollars into securities that can rapidly be changed back into dollars if needed. One of the most popular ways to do this has been to invest those dollars in U.S. Treasuries. This has driven down interest rates on U.S. debt over the years and has enabled the U.S. government to borrow trillions upon trillions of dollars for next to nothing.
But if the rest of the world starts moving away from the U.S. dollar, all of this could change.
History has shown that when the status of the petrodollar is threatened, the U.S. is swift to take action.
And it is very interesting to note that President Trump will be meeting with Latin American leaders next week, and the main topic for discussion will be “the Venezuela crisis”…
U.S. President Donald Trump has invited three Latin American leaders to dine with him next week in New York as he seeks to address the Venezuela crisis and build bridges with the region after an acrimonious start with neighbor Mexico.
The political and economic turmoil in Venezuela, source of 10 percent of the oil consumed by the United States, will almost certainly top the agenda when he receives the center-right presidents of Peru, Colombia and Brazil at Trump Tower on Monday evening, diplomats said.
Could this latest move by Venezuela be enough to potentially spark a military conflict?
Having threatened China today with exclusion from SWIFT, we suspect Washington is rapidly running out of any great ally to sustain the petrodollar-driven hegemony (and implicitly its war machine). Cue the calls for a Venezuelan invasion in 3…2..1…!
It would be absolutely no surprise at all if John McCain and Lindsey Graham start appearing on the major news networks calling for war with Venezuela, but hopefully President Trump will not listen to such nonsense.
No matter how important the petrodollar is, there is absolutely no reason to go to war to protect it.
And if war talk does begin, the American people need to make their voices heard very, very loudly. We have been in useless wars before, and we certainly do not need another one.
We just got more evidence that the middle class is being systematically eviscerated. According to a GOBankingRates survey that was just released, more than half the country has less than $1,000 in savings. So in the event of a major economic disaster of some kind, over 50 percent of the nation is going to be completely out of cash almost immediately. For years I have been writing about the steady decline of the middle class in the United States, but I still get astounded by numbers such as these. According to this new survey, only 25 percent of all Americans have $10,000 or more in savings at this point…
$0 saved: 39 percent
Less than $1,000 saved: 18 percent
$1,000 to $4,999 saved: 12 percent
$5,000 to $9,999 saved: 6 percent
$10,000 or more saved: 25 percent
Most of us have grown accustomed to barely scraping by from month to month. But that is not what being “middle class” is supposed to be about. If you are in the “middle class” you should be making more than you are spending and building long-term wealth.
But just like our federal government, most of us are spending money like there is no tomorrow. If we don’t have quite enough money for what we want to do, we just borrow more. Right now, U.S. consumers are more than 12 trillion dollars in debt, and it is impossible to build any real wealth when you are constantly drowning in red ink.
We are willingly enslaving ourselves, but most people were never even taught about the dangers of going into too much debt.
Another major factor in the decline of the middle class is the fact that we have been shipping millions of good paying jobs overseas. We have lost more than 70,000 manufacturing facilities since China joined the WTO, and we have been replacing good paying manufacturing jobs with low paying service jobs.
Without enough good paying jobs, our middle class has been steadily shrinking. In 2015, the middle class became a minority of the population in the United States for the first time ever recorded.
If you go back to the early 1970s, the middle class was well over 60 percent of the population, but now that number is hovering in the high 40s.
And things continue to get even worse. For example, NBC News recently reported that the number of Americans that can’t afford to be living in their own homes has more than doubled since 2001…
Under federal guidelines, households that spend more than 30 percent of their income on housing costs are considered “cost burdened” and will have difficulty affording basic necessities like food, clothing, transportation and medical care.
But the number of Americans struggling with their housing costs has risen from almost 16 million in 2001 to 38 million in 2015, according to the Census data crunched in the report. That’s more than double.
If we want to turn things around for the middle class, we need more entrepreneurs and more small businesses.
Small businesses have traditionally been the primary engine for job growth in this country. But instead of encouraging small businesses to start and grow, the federal government has been absolutely killing small businesses with red tape and high taxes.
If I win my election, I am going to do all that I can to fight for entrepreneurs and small businesses. Today, the percentage of Americans that work for themselves is close to a record low, and we desperately need to get that turned around.
So I I go to Congress, one of the first things I plan to do is to push for the elimination of the “self-employment tax”.
If you are an entrepreneur, then you already know how painful that particular tax can be.
We have got to get this economy growing again. Barack Obama was the only president in our entire history never to have a single year when the U.S. economy grew by at least 3 percent, and overall we have not had a year when our economy grew by at least 3 percent in over a decade.
I hope not, because it sure is not acceptable to me.
What we have been doing is simply not working. In fact, if we were not propping up the economy with the greatest debt binge in human history, we would be a in a rip-roaring economic depression right now.
If we want America to once again become the greatest economic machine on the planet, we need to do the things that made us great in the first place. We need an extremely limited federal government that stays out of the way of business, and we need to once again embrace the principles of free market capitalism.
Free markets work tremendously well if you allow them to do so.
But if we continue to march down the road toward big government socialism, we will get what we deserve, and it won’t be pretty.