I was reading the financial section of the Minneapolis-Star Tribune and read a column which I thought should be shared with readers. It was noteworthy because it was a written by an “establishment” columnist, Al Lewis, whose columns are distributed by Dow Jones & Co (see first link). His column is entitled “We’re Broke!”
As readers know, I have referred to the $85,000,000,000 per month currently being “lent” by the US Federal Reserve Board to the US Government and various Federal Agencies as “fantasy money” which is being loaned into existence by the Fed. Of course, the reason the fed needs to create this fantasy money to loan to the US Government and its affiliated agencies is because the rest of the world no longer wants to loan to Uncle Sam (a fact rarely noted in the financial press). Once the US Government and federal agencies borrow this “fantasy money” from the Fed, they use it in the economy as if it had been “real money” which had been borrowed from lenders who were lending actual money that had been held in depository accounts somewhere in the world. The author of the column in the second link, Al Lewis, refers to the Fed’s money being lent to the US government as “funny money” in a quote stating that “People of all ages see the [US] economy as propped up [by the Fed] with funny money.” He lists comments from readers of his column who sent their reasons why they view the US economy as being weak. They are a good cross-section of Americans’ viewpoints. That an establishment financial column has included a reference to the Fed’s “money” being loaned to the US Government as “funny money” is supportive of my references to it as “fantasy money.”
As readers know, I have cited Revelation 17-18 ‘s prophecy as prediction that the global economy/monetary system as we know it will eventually experience a global crash. This is hardly a radical viewpoint. Secretary of the Treasury, Henry Paulson, warned that just such a crash was only hours away in the global financial crisis of 2008. Many establishment figures have warned that the current spending levels of the US federal government are “unsustainable.” President Obama and the US Congress simply ignore this reality and keep spending like all financial laws have been suspended.
We are now watching the soap opera of the US House and Senate passing bills on the US debt limit and federal budget that each legislative body of Congress knows the other body will reject. This is a “dialogue of the deaf.” Why don’t they use the standard legislative action of going to a Conference Committee on the subject and hammer out a compromise solution there? That they refuse to do so indicates to me that neither side wants to actually search for a solution—they merely want to engage in political posturing. What will happen remains to be seen as this post is being written. However, the GOP House of Representatives, in my judgment, is acting like a very concerned doctor who is doing an intervention on a hopelessly-addicted patient to try and save the patient’s life. In this case the “patient” is the federal government budget and the US dollar. The US government is as hopelessly addicted to debt as a poor meth addict is to meth. By voting to continue the current crazy level of overspending and endless debt-increases, President Obama, Senate Leader Harry Reid and Democratic Caucus Leader Nancy Pelosi are all acting as enablers for the “patient” (the US Government) to ignore its hopeless addiction. At some point, unless this addiction to debt spending is ended, the “patient” (the US federal budget and the US dollar as we now know them) will die. That is how I see it. I also think the US Congress and President Obama do not realize that the rest of the world will not endlessly stand idly by while the US Government funds itself with “fantasy” or “funny” money. At some point, the world will do a nasty “intervention” that will have very serious impacts on the US Federal Government, all American citizens and all US dollar-denominated assets and bonds.
Economic “Judgment Day” is approaching. When it will occur is not known to me, and I make no predictions concerning dates. I simply point out that the US government is still careening toward the fulfillment of the prophecy in Revelation 17-18. For some surprising information about the origins of the modern banking-based financial system and why the Bible refers to it as “Babylon the Great,” I very much urge you to read the article entitled The Babylonian Origin of the Modern Banking System. It will offer you some historical perspectives the establishment financial press will likely never tell you.