Twitter   RSS   Email  

 How the Global Economy is Dependent on Christianity

 Why America May Never Recover From the Recession

 Save Money Homeschooling

When will the Fiscal Madness Stop?

By: Steve Johnson

7/29/2008 - 15 Comments

The government just keeps making more and more economic decisions that are completely mad.

The madness started way back in the 70’s, when Nixon removed the gold standard because congress was spending more money than the country had – which forced the Federal Reserve to increase the money supply – causing prices to increase which meant that they could no longer hold the dollar to a fixed price of gold. 

In the 90’s, Allan Greenspan held interest rates lower than inflation for a long time – which again increased the money supply – causing the dollar to lose value even quicker.

Last year the Federal Reserve again dropped the interest rate below inflation, which is where it is today. Inflation is increasing very fast, yet congress as just approved a housing bailout bill that is worth over 400 billion dollars and extends a line of credit to the government sponsored mortgage giants Freddie Mac and Fannie Mae to support more than five trillion dollars worth of paper assets - which are not worth a quarter of their value.

When will the madness stop?  How long will foreign nations continue to support America because of its impact on the global economy?

Bailout Nation

A Bush administration said Monday the next government will inherit a record federal budget deficit for next year that approaches $490-billion (U.S.). A deficit approaching $490-billion would easily surpass the record deficit of $413-billion set in 2004. That’s about $1600 per person.

The Dollar will Pay

The only way that I see America paying for these massive bailouts is by the dollar losing tremendous value over the next several years. In the 70’s and early 80’s the dollar lost two-thirds of its value – from a decade of high inflation. What that means is that prices will go up for years, until you can buy the same thing for three times what that you could just a few years ago. 

Copyright © 2019 All rights reserved.

Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse

In discussions of today's economic meltdown and what to do about it, the Federal Reserve is a stealth helicopter: it never shows up on the radar. With the exception of a few esoteric specialists and those Ron Paul Revolutionaries who burst into chants of "Abolish the Fed!" Historian Thomas Woods notes in this important book, the Federal Reserve bears a large part of the blame for the mess we're in. In the first part of "Meltdown," Woods shows how both in theory and in practice, Fed policy fueled an artificial boom and is now leading us to a much larger meltdown.

Crash Proof

Peter Schiff has predicted the economic hardship more accurately then any other economist in the world in this book. Everything from the housing crash to the credit crunch to the stock market. Peter has a plan to help you servive the crash. Peter explains why the Wall Street investment firms are still trying to sell you stocks, and was the house prices are likely to continue to decline for years to come.

What Has Government Done to Our Money?

Rothbard gives us an exceptionally clear, detailed description of what money is and how it has come to be manipulated by governments and central bankers into almost worthless inflationary fiat paper currency. He then explains how gold became the most respected and trustworthy currency of choice and the prospect of either hyperinflation or the greatest depression the world has ever seen may be arriving in the very near future.

The Coming Economic Earth Quake

Larry Burkett explains how the financial troubles in America started back in the 1930s. Larry explains the economics of huge goverment and public deficits and how it leads to hyper-inflation. We may be headed for another great depression.