The World Financial Condition Is a House of Cards
By James Donahue
It is no secret that stock exchanges around the world are reflecting a very unstable financial climate.
The reasons for this appear to be varied. Money analysts are busy these days, pontificating on our television screens about
the causes of the unexpected market fluctuations and trying to assure the public that all is well.
Yet there is a general
feeling among the people that all is not well. It is not hard to understand why; with more and more good paying jobs disappearing,
the number of homeless Americans on the increase, yet the price of food, clothing and housing rising through the roof. The
instability has been spreading into the streets. From occupy movements to violent street rioting like those occurring in Ferguson,
Missouri to Hong Kong, China, there is growing unrest all over the world.
Notice the way big business has beefed up the Christmas season promotions, pushing the appearance
of Santa Claus to as early as Halloween and shoving the Black Friday sales into Thanksgiving Day and in some cases even earlier.
The promotions for new cars, home appliances and electronic gadgets that we don't need are dominating our television screens.
The Federal Reserve has dropped interest rates on loaned "money" and credit card promotions are flooding everybody's mailbox.
Yet people are not spending as readily as they once did. The reason is simple. They are broke and they have no expectations
for a better year ahead.
Indeed, something dark is in the wind and most folks are thinking that it may be time to batten down
Indeed, something interesting is occurring this winter in Europe and on the Far Eastern front. There
appears to be a growing financial alliance developing between the banks of Germany, Russia and China. There is a conversion
of U.S. Treasury Bonds into Gold bullion on a massive scale. U.S. economist Stephen Leep recently concluded that "the German-Russian-Chinese
connection is getting stronger, and the U.S. is becoming more distant. It feels like the world is changing in front of us.
Do not be surprised to see Gold and Silver being the ultimate safe havens, but also Gold being sure to play a part in the
new reserve currency in the East."
While the economists are speaking in the jargon of their own kind . . . a system carefully designed
to make it impossible for the average citizen to understand what is going on . . . by reading between the lines it appears
that there is a move afoot on the other side of the world to regenerate a currency backed by a gold standard. If they pull
it off, expect the value of the U.S. dollar to plummit. It will no longer hold the position as the stable currency for world
If this is happening, we have only ourselves (the greedy bankers and politicians) to blame. America
destroyed the foundations of the nation's monetary system about a century ago when the nation secretly did away with the gold
There was a time when people were issued dollar bills in lieu of an equal amount of gold kept in reserve
in a mighty vault, carefully guarded by the U. S. military, at Fort Knox, Kentucky. There was an unstated promise that each
"green back" could be exchanged, on demand, for gold, so the piece of paper in our pocket had value.
There used to
be a popular phrase that wealth was reflected by "all the gold at Fort Knox." You don't hear that saying anymore because the
gold in Fort Knox isn't stockpiled like it used to be. In fact, we must wonder if there is any gold left there at all. There
also has been a story that a lot of the world's gold was kept in a secret storage vault deep under New York City's World Trade
Center. If this was true, no one knows if that gold is still there, or where it went after the 9-11 attack.
the old days were minted in real gold and silver. People could carry these precious metals around in their pockets as assurance
that our monetary system was intact. This way of doing business probably had a lot to do with the stability of the American
dollar on the world financial market for so many years.
Eventually, however, the U.S. bankers and money brokers discovered
that people would still trust their printed paper money, even after it was no longer backed up by gold. That was bound to
happen. Inflation and a fast growing population created a need for more and more printed money. Also there was a limit on
the amount of gold available to back up our currency. After a while the decision was made to sell much of our gold stock.
If we remember correctly, a lot of gold was sold to pay off some of the national debt.
At about that same time we began issuing plastic credit cards, which got misconstrued as a form of money. We have been
operating on a plastic and paper monetary standard now for at least 50 years. We have used oil reserves in exchange for gold
in an attempt to keep the value of the dollar somewhat stable. This may have had a lot to do with our government's close alliance
with Saudi Arabia. But with the world oil reserves dropping, and our ties with the Saudi government on shaky grounds, the
value of the dollar is now under question.
What this means is that the value of the dollar bill is no better than
the people's faith in it's ability to purchase goods and services. Once that faith begins to slip, and people understand just
how flimsy the monetary system really is, the whole thing is capable of collapsing like a house of cards.
We are surprised
that the system remained as stable as long as it did.
Money, like a lot of other things we worship, is an illusion.
It is a big lie. All a dollar bill really is, is a piece of paper issued by the government. As long as people believe it has
value, then we can trade it for goods and services. After we lose faith in its value, we might as well use it for compost.
the ranks of the poverty stricken grow, more and more people are beginning to understand just how corrupt our monetary system
is. The middle class is almost completely erased. And the split between those who have wealth and those who have nothing is
growing wider and wider. A recent study indicates that there are an estimated 100 million homeless people in the world. There
are over 600,000 homeless people in the United States. I think these are conservative numbers based on statistics collected
by government agencies dealing with the homeless. Not all end up in long lines seeking assistance and they are not being counted.
We now live in a world of invented fantasy, designed to keep us pacified. Under the
influence of our daily dose of Prozac, we sit in our modest little dwellings, deep in debt, watching carefully orchestrated
television game shows that turn ordinary people into instant millionaires. We play the lottery. We watch sports figures sign
contracts that earn them multi-millions of dollars. We hear stories about political figures, from local levels all the way
to the White House, who take big "payoffs" for political favors. The American dream has shifted from having a steady job,
owning our own home and parking a car in the garage, to rising up from poverty like Cinderella. But for most of us, that is
all it can ever be. It is only a dream. It is not reality.
If America's paper money system is teetering on the edge
of collapse. it may be a good thing in the long run. People have too long worshipped money. We are sick of all the scalping,
cheating and downright robbery that has become our way of life.
Our legislators have passed laws making it mandatory that we pay local, state and federal taxes on every dollar earned,
spent, and on all things of value that we own. We are required to pay for high priced "no-fault" automobile insurance. We
are bombarded by a daily advertising blitz, designed to make us want poorly manufactured plastic devices we don't need. Yet
the jobs we have available for us don't pay nearly enough to maintain the standard of living we are programmed to desire.
We have become unwitting slaves to a corrupt system that is attempting to shake every last penny out of our already empty
pockets. We can't even die without someone paying a high price to dispose of our remains.
Money has become the real
god of the people. People seem to be willing to do anything, even kill to get it.
The collapse of such an evil deity
might be a very good thing for everybody concerned.