Time to Unplug the Federal Reserve and Let the Economy Recover on its Own By: Curtis Ophoven 6/28/2010 - 5 Comments The G-20 meeting resulted in a rare occasion with almost all of the national leaders suggesting the same strategy for the global economy. Your Ad Here The strategy is to STOP government borrowing and spending and let the people rebuild the economy without government intervention. Only one leader had a different strategy, President Obama, which was to threaten the rest of the leaders into continuing to print and spend money until the global economy is clearly out of the recession. The lack of influence of Obama’s economic policies with world leaders seem to mirror his sinking influence at home as the polls continue to show his approval rate dropping. California on 'Verge of System Failure' From Obama's side of the fence, California is about to suffer a complete economic meltdown. Obama has a Greece debt problem times ten—as California is on the verge of system failure. According to an article at NewMaxx, “California’s fiscal hole reportedly is now so large that the state would have to free 168,000 prison inmates and permanently close 240 university and community college campuses to balance its budget in the fiscal year that begins July 1.” “We are on the verge of system failure,” Jean Ross, executive director of the California Budget Project, told the Globe and Mail. “We have to get some federal money,” Ross says. “It would be bad for the U.S. and, arguably, bad for the world to do the shock-therapy approach.” Budget analysts say Governor Arnold Schwarzenegger has no choice but to ask Washington for bailout funds, and that Washington has no choice but to agree because not bailing out the Golden State could put the entire U.S. economy at risk. It seems that California — which at one time had the third-largest economy in the world — is like the biggest U.S. banks: Too big to fail.” Obama needs to print a lot of money to bailout California and keep the US economy from collapsing, but he cannot do that unless he can convince world leaders to follow suit and continue printing money so that their nations will continue accepting the value of the dollar as is.  Without foreign nations printing money as fast as the US, the dollar will sink and the US economy will be force to face massive inflation on top of its troubles.   The inflation (reflected in higher prices) will then force the US to stop printing and borrowing money as interest rates rise. There will be a lot of difficult decisions in the next six months and the direction of the economy is at stake. Taken together, state budgets are $112 billion over.  If Obama gives federal money to California, every state will want be bailed out.  Who will get the money and how will it be fair? Related Articles How to Lose All Your Money: Put It in Your 401k How the Federal Reserve Created the Recession and How International Central Bankers are Making the Same Mistake The Fed’s Recovery Plan Is Based on Fooling Everyone Holding Dollars The Federal Reserve Needs To Be Audited So The Dollar Can Be Saved You Can’t Afford To Ignore What The Government Has Done And Is Still Doing   Subscribe via RSS Copyright © 2010 PennyJobs.com. All rights reserved. << FREE >> Weekly Newsletter... Signup today and start receiving our free weekly newsletter! Reader Comments Comment 1 Jen Says: on Tuesday, June 29, 2010 7:16:26 AM G-20: Obama Keeps Talking, But The World Has Stopped Listening http://blog.heritage.org/2010/06/28/g-20-obama-keeps-talking-but-the-world-has-stopped-listening/ Comment 2 Tim Says: on Tuesday, June 29, 2010 12:45:08 PM Central banks warn of new crisis if exit left too late http://www.reuters.com/article/idUSTRE65R1Q320100628 Comment 3 Steve Says: on Tuesday, June 29, 2010 7:51:51 PM TIME TO UNPLUG THE WAR!!! http://original.antiwar.com/paul/2010/06/28/military-spending-must-be-on-the-table/ Military Spending Must Be on the Table by Rep. Ron Paul, June 29, 2010 This past week various news events once again made it abundantly clear that our foreign policy is an abject failure. Unfortunately, in spite of this, the administration is determined to stay on this destructive course, despite any past promises to change it. For Afghanistan especially, if ever there was an opportunity to admit shortcomings and change strategies along with leaders, this past week was it. There really is nothing for us to win in Afghanistan. Our mission has morphed from apprehending those who attacked us, to apprehending those who threaten or dislike us for invading their country, to remaking an entire political system and even a culture. I remain highly skeptical that, as foreign occupiers, we can ever impose Western-style democracy on another country. Our troops have debilitating restrictions on defending themselves against enemies, which are so often indistinguishable from civilians. They also face dire setbacks in winning hearts and minds when innocents are mistakenly harmed, which happens all the time. We can never make friends this way; the tactic never works. This is an expensive, bloody, endless exercise in futility. Not everyone is willing to admit this just yet. But every second they spend in denial has real costs in lives and livelihoods. Many of us can agree on one thing, however. Our military spending in general has grown way out of control. This is largely because fiscal accountability in military budgeting is seen, by many, as weak on defense. This is absolutely wrong and a dangerous way to think. It is certainly possible for the military to waste money, or to spend money counterproductively, and indeed it has. But out of political correctness, the military has been getting blank checks from the administrations and Congress for far too long. It is important to defend our soil, but let us defend our own soil instead of defending Europe’s soil. Our willingness to defend Europe enables their lavish social spending at our expense, while they criticize our model of capitalism. It is time they allocated the money for their own defense. The same goes for Korea, Japan, and other countries like Egypt and Israel. It is also important that while our troops are in combat, our soldiers have what they need to do the best they can, even if we disagree with why they are there. It is an embarrassment that some soldiers and families have had to buy body armor at their own expense when billions are awarded to politically well-connected defense contractors for weapon systems that don’t work, are over-budget, and are past deadline. This is the kind of waste that needs to end. I firmly believe that there is enough waste in the military budget that we can both save money overall and at the same time be safer. Of course, the obvious way to save money and be safer is to stop meddling in the affairs of foreign countries and just bring our troops home. This will happen eventually if our empire, like every other fallen empire, insists on spending itself into collapse. If we want to avoid this, we must look into ways to bring our costs under control. Military budgets must be on the chopping block along with everything else. Comment 4 Mo Says: on Monday, July 05, 2010 7:35:11 PM http://www.prisonplanet.com/bilderberg-see-people-with-income-as-a-threat-to-their-agenda.html When are you North Americans going to realise the G20 does not set the world's agenda, these people do! Write a Comment Please keep comments civil and on-topic. Abusive or inappropriate comments will be removed without warning.  Name (required)     Email Address (required)     Website URL  Comment

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