Economics for dummies

Sandra Crosnoe - Finding Gems & Sharing Them

Economics for Dummies

Government v. Taxpayers

Transparency or Obscuration

Oversight or Exploitation

Thoughts of an amateur economist

by Jack DeVault

In College I studied Economics 101-2. I learned about supply and demand. I learned about the economic theories of Adam Smith, John Maynard Keynes, and Milton Friedman. I learned that the first two theories were built on shaky ground. Milton Friedman recognized their errors and built his economic philosophy on a firm foundation. I liked what I learned but I pursued it no further. That’s why I am only an amateur. But I will offer my view in a nutshell for those who never studied Econ 101-2

In this economic crisis President Obama has surrounded himself with Bankers. Had he chosen a Friedman class economist to advise him perhaps we would not have arrived at this chaos and would not have to face the doomsday toward which we are racing at breakneck speed. Consider how we got in this mess.

Greedy bankers invented the Federal Reserve System. This fractional reserve banking arrangement allows the bankers to exert leverage with other people’s money – in fact it even allows them to use non-existent money. Bankers know how to leverage money. Leverage simply means that a valuable asset can be controlled and profits derived from it using a much smaller amount of money. Greedy bankers migrated to Wall Street where they increased their leverage by using margin accounts. Greedy bankers invented derivatives which increased their leverage still more by gambling on the prices of margined goods which extended thier leverage still further. That is why bankers are always wealthy. Today, because they deceived investors and greedily overextended their leverage, they would be poverty stricken if it were not for The Federal Reserve System (run by bankers), the U S Treasury Department (also run by bankers), the U S Congress and the Presidency (run by lawyers).

Because of these agencies, the TAXPAYERS – who have now been placed into involuntary servitude, are the ones on whom the entire burden has been dumped by the aforesaid bankers and lawyers. This burden is far more than the citizens can bear and that is why disaster now seems inevitable. Many more businesses will close, many jobs will be lost, bad debt will snowball, inflation of the Zimbabwean variety will follow. Even now the Treasury is printing money for which no bonds or notes have been sold – not even China will buy them. The euphemism used by greedy bankers and politicians to describe what is happening is “monetizing the debt”. It is creating printing press money like monopoly money.

Congressmen (and women), in their greedy pursuit of votes and power have bought the votes of the ignorant populace by encouraging the greedy bankers to extend loans to greedy people who obviously could not repay them. This inflated the cost of housing and caused the building industry to overbuild. And why not? After all, the taxpayers have elected power-hungry congressmen who used taxpayer’s money to guarantee the payment of those worthless loans.

Now we taxpayers are not without our share of the blame. We have empowered these thieves and liars. Had we studied the Constitution – and followed it – we would not have allowed the U S Congress and the President and the U S Treasury Department to acquire the power to enslave us. If we had understood and applied the Tenth Amendment to the Constitution our taxes would be much less and the nation’s budget would be balanced.

President Obama’s response to the problems is precisely the wrong one. He is doing exactly the same thing that the bankers and the Congress have done to the housing market and the stock and derivatives market. He has single-handedly unbalanced the whole house of cards which started this chaos. Those overpriced houses needed to be repossessed, but Obama insists on loaning unproductive people still more money. Those overpaid auto workers should be allowed to bankrupt their companies so that the unions could be thrown out. But Obama wants the unions to survive. If he lost their votes he would lose the next election. He throws good money after bad. He patches band aids onto cancers. He throws gasoline on the fire.

Lots of my friends are beginning to accumulate gold and silver in an attempt to prepare for doomsday. This is a good strategy to prepare for an economic emergency. Unfortunately we are not in a mere emergency. We are in the meltdown of civilization as we have known it. Don’t you think it is time to get reacquainted with the Creator of the Universe?

Christians, here is an old, old song I have not heard for many years. We used to sing:

Nor silver nor gold hath obtained my redemption;
No riches of earth could have saved my poor soul.
The blood of the cross is my only foundation;
The death of my Savior now maketh me whole.

I am redeemed, but not with silver;
I am bought, but not with gold;
Bought with a price—the blood of Jesus,
Precious price of love untold.

Nor silver nor gold hath obtained my redemption;
My earthly possessions have far away flown.
The blood of the cross is my only foundation;
The death of my Savior I only can own.

Nor silver nor gold hath obtained my redemption;
The cross of my savior invited me near.
The blood of the cross is my only foundation;
My now risen Savior removeth my fear.

Special thanks to Jack Devault for this email post. Jack and his wife Bonnie have been friends for years. He is a believer and an author and a patriot extraordinaire. Thanks for this little gem!

2 Responses to “Economics for dummies”

  1. Robert Says:

    Thanks for posting James M. Gray’s gospel song, “Nor Silver Nor Gold.” Pertinent remind in these days of economic distress. We have an offer of free salvation from the Lord, already paid for by our Saviour on the cross. Incidentally, today is the 74th anniversary of Gray’s death.

    • Sandra Crosnoe Says:

      Thanks ever so much Robert for letting us know and for sharing the link to your most wonderful blog! It is a real delight and an honor to many who have gone before us as well. May we be worthy of His praise above all others one day, washed in the blood of the Lamb and casting our crowns at His feet gladly!


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