US Action News

Central banks and governments try to induce consumers to spend to help the economy while they take money away from savers who would like to be able to profitably invest. Rather than inducing them to consume more, they are forcing them to spend less in order to make their savings last through their final years!

Oh, you’ll read the stories about how many medications aren’t being imported in Greece, sheets are being re-used in hospitals, suicides have skyrocketed, and trash collection is erratic at best, but these articles are few and far between. The dire conditions and the depopulation of Ireland and Latvia get even less press.

Central bankers and economists are so wrapped up in warped mathematical formulas they fail to understand the obvious. The answer, which they refuse to accept, or even consider as a possibility, is that central bankers and the monetary system itself are the problem.

Borrowing money from the bankers can allow a nation to have a higher standard of living in the short-term, but it always results in a lower standard of living in the long-term. Why is that?

Eurozone leaders backed a ten year plan that would give an EU treasury powers over national budgets. The plan uses vague leftist socialist code words that could be interpreted to justify just about any decisions made.

Inflation will destroy US savings and purchasing power but the Fed and Obama have decided that is an ok price to pay to bail out Europeans. Obama is desperate to keep the economy from tanking any further before the 2012 election.

The actions of the Central Banks signal how desperate the situation is. Nothing was done to help Greece, Spain or the other insolvent European sovereigns. Yesterday was an attempt to keep the dysfunctional world financial system going awhile longer.

“To preserve our independence, we must not let our rulers load us with perpetual debt. If we run into such debts, we (will then) be taxed in our meat and our drink, in our necessities and in our comforts, in our labor and in our amusements. If we can prevent the government from wasting the labor of the people under the pretense of caring for them, they (will) be happy.” -Jefferson

The guardians of the world economy still seem to think the answer to too much debt is yet more debt. Imagine the response, though, if you had asked any of the current crop of central bankers five years ago about the inflationary consequences of pumping trillions of dollars into the financial system.

The recovery from the worst global downturn since World War II is proving weaker than projected, the Organization for Economic Cooperation and Development said this month.