Keep on Printing!

 Keep on Printing!

by Dave Jarvis

 

There can be nothing worse than devaluing the dollar, right? There can be nothing worse than fiscal irresponsibility, right? Nothing could be worst than creating more debt for the American people, right? Wrong. Wrong. Wrong. There is something much worse. It's called permanent debt slavery. Turning credible in the last moments before an economic collapse is an insane policy. The idea of taking full responsibility for the failures of the Federal Reserve, the Banking industry, and rampant greed in corporate America will put a debt burden on every American that is unfair and immoral. Today, we might have an opportunity to rid ourselves of the Federal Reserve and the debt entanglements we currently hold with China and the rest of the world. We may be able to extricate ourselves from the position of global overlord and become a sovereign nation again. But that is only possible if we first crash and burn. From where we are now that new beginning is less likely if we decide this late in the game to suddenly become responsible. We have two choices before us, fiscal responsibility and national sovereignty. I choose sovereignty.

Today, we are well into a national depression where the real unemployment rate is pushing into the high teens, the stock market has halved, the American people have lost eleven trillion dollars in net worth, and credit has become virtually non existent. Moreover, the problems we have in front of us equal or surpass the ones that have gotten us here today:

  1. A whole new group of residential adjustable rate mortgages will begin to reset this year creating a new wave of foreclosures and bankruptcies. It is being said that the value of the coming wave of ARM mortgages is equal to the value of those properties already foreclosed on.

  2. Up until now commercial real estate has managed to avoid much of the carnage of the market. However, with store closings on the rise we will begin to see the owners of mini malls, malls, office buildings, and other various commercial real estate holdings begin to foreclose. There can be no estimate on how bad it will be, but if not covered by the printing press it will break the back of every bank in America.

  3. As America loses jobs at a furious pace they lose health care coverage at the same pace. And while health care is already being mandated in emergency rooms, the ability to pay for services has not changed for the better. Emergency rooms will become more crowded every day since it will be the only place Americans are guaranteed care. The lack of paying customers will force hospitals to close if not kept open by the printing presses. A best case scenario would put much of the health care industry out of work while keeping a minimum “emergency only” staff working.

  4. Strangely enough, we continue to enjoy a fair amount of demand for our treasuries. If that demand were to diminish interest rates will rise thus increasing the debt obligations we are forced to pay to our international investors. The world is already concerned about the reliability of the American economy. They are already wondering how they will rid themselves from the dollar while not creating a crash. Rising interest rates will guarantee that even as credit begins to free up the cost of credit will prove extremely prohibitive to home purchases...drastically worsening our current housing crisis.

  5. At some point, due to concerns over our economy, our national credit rating will be lowered. It could happen any day now, any month, and when it does it could create a panic on the dollar, again causing interest rates to spike.

  6. There are social aspects to economic crises, namely more crime, more destruction of property, more fear, and greater political instability. None of which help an economy in trouble.

  7. If we choose financial responsibility today Detroit is finished, health care is finished, the Banks are finished, the consumer is finished, and Agribusiness is finished. We happen to need health care, Detroit, the banks, the consumer, and agribusiness in the event of war. To allow business to close up in America is to be unprepared for war, thus inviting it.

If we were to drastically cut spending, support a strong dollar policy, let the weak companies fail, and begin acting the role of responsible banker there would still be a sell off of dollars, we would still need to print out dollars in order to make our debt obligations. The difference would be that Communist China's savings would be secure and that our children will become their debt slaves.

 

Let's use whatever goodwill is left in the dollar to keep our hospitals, the auto industry, and our supermarkets full, and our banks at least open. And let's increase defense spending, today. With domestic defense taking the priority. This is the time to spend on defense, regardless of economics. We are first citizens of the real world, then of America. In the real world, wars happen. When things get bad, you buy a gun, but even more important...you buy the bumper sticker that let's the world know you have one. That's the real world. Let's live in it.