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What the Ruling Class is doing with your money

May 6, 2010 13 comments

One evidence of a Ruling Class taking over a country is when the rulers go against the wishes of the people who have elected them.

Roughly 90% of Americans rejected the $700,000,000,000.00 ($700B) TARP bailout plan, but the Ruling Class pushed it through anyway.

We rejected the $40B bailout of AIG and trading partner Goldman Sachs – which subsequently grew to a $180B bailout – but the Ruling Class hid what they were doing and illegally used taxpayer monies to perform the bailout anyway. (The guy in charge of this one? Current Treasury Secretary Geithner. Nice.)

We the people also rejected a government take over of GM and Chrysler, but the Ruling Class went ahead and used billions of our dollars to do it anyway, paying preferred creditors pennies on the dollar, and transferred huge proportions of the newly formed companies into the hands of the United Auto Workers union. Yet another Chicago-style cronyism move by the current administration.

If this isn’t going against the will of the people, I don’t know what is. This is government taking power into its own hands and doing what it wants against the will of the people, making huge transfers of wealth and often – like Geithner – feathering his own bed in the process. I don’t know what you call this type of government, but it is not a democratic republic.

Can the US Government actually run a program without bankrupting it?

  • Social Security ($17,500,000,000,000.00 underfunded; $17.5 trillion);
  • Medicare Part A ($36,700,000,000,000.00 underfunded; $36.7 trillion);
  • Medicare Part B ($37,000,000,000,000.00 underfunded; $37 trillion);
  • Medicare Part D ($15,600,000,000,000 underfunded; $15.6 trillion),
  • Government and military pensions ($2,000,000,000,000 underfunded; $2 trillion)

And we are going to let this same Government run Healthcare? Even the Office of Management and Budget is reporting that the United States government will experience massive, non-stop deficits for the next 70 (SEVENTY) years, requiring the issuance of tens of trillions of dollars of additional debt. The OMB does not project even one year of surplus during the entire seventy year budget period. Link HERE. (And don’t even get me started that these budget numbers are already including $646 Billion in tax revenues from 2012 to 2019 from Cap & Trade, which hasn’t even been passed yet!) Has your elected official talked to you about that? You don’t have to answer.

What is our Government’s response? Print more dollars. The US government has announced that during the fiscal years from 2010 through 2019, it will create an additional $9,000,000,000,000.00 ($9 trillion) in deficits, an amount that is almost certain to be understated by trillions given the country’s current economic trajectory. The government assumes that this vast additional deficit will be funded by others, such as the Chinese, as it is a statistical fact that the United States will be incapable of funding it. Link HERE.

What does this mean to you and me? That our wealth (if we have any) is being destroyed. Create enough dollars and they won’t be worth anything. It’s a simple truth: too much of something makes it worthless. The more our government creates money to cover their RECORD SPENDING, the less valuable your salary is, the less valuable your savings are, etc. Our government is bankrupting us through this spending policy. I know we sometimes think the United States is a blessed country and more immune to these problems than other nations, but let’s not be naive enough to think that somehow supply and demand doesn’t apply here! And that the value of our dollars won’t be adversely affected by the Government printing trillions and trillions more of them!

What can we do? Make a plan to protect yourself and your family. Don’t hold your assets only in dollars. Diversify into other things (land, gold, etc.) Even the Wall Street Journal is saying it’s a good idea to stockpile food. Link HERE.

And let’s get these big spenders out of Washington. I’m not talking Democrats vs. Republicans. Vote people into the House of Representatives that will work to put an end to this spending. The House is the easiest access we have to the Federal Machine. Find people you can support that will work to stop this spending madness. It won’t be easy to stand up to the current machine that is playing party politics as hard as anyone has in recent memory, but we might as well try while our dollars are still worth something.

Honestly, though, I’m not sure what kind of difference we can make at the Federal level until there is a massive reset (huge depression, market collapse, currency devaluation or failure, etc.) but this doesn’t mean we shouldn’t try. We can, however, make a difference at the local level. When our Federal government’s spending policies finally make it impossible to be the “be-all, end-all” throughout America — which it never should be trying to do — we will still need to make life work where we live. Getting involved at the local level will make a huge difference in how our communities adapt and move forward.

What are your thoughts? What are other ways we can prepare for the inevitable problems facing the dollar due to government monetary policy?

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