In the midst of profound economic changes, our reflection on the prevailing financial practices reveals unsettling truths. Since 2008, we have witnessed a troubling trend in economic and financial management that seems to dominate the global landscape in 2015.
This overarching principle can be succinctly expressed as follows:
One must continuously devalue money while expanding debt indefinitely.
This policy is vigorously implemented across the United States, Europe, Japan, China, and beyond. Policymakers and politicians operate without boundaries, leaving behind any sense of accountability or consideration for future consequences.
The Federal Reserve creates new credits, which the Treasury then spends. Meanwhile, existing debts are never reduced; instead, the interest is managed, and old debts are perpetually rolled over by incurring new debts that are financed through the creation of additional credits.
But how is this scheme allowed to persist openly? Are people simply unaware of it, or are they indifferent to its implications?
Individuals who earn their living through hard work should find this situation deeply offensive. In 2014, the median household income was $51,939, yet since 2008, the Federal Reserve has generated nearly $4 trillion in digital currency with just a few keystrokes. Naturally, we have our inquiries.
Systemic Theft
What impact does this careless creation of money have on the value of legitimate work? Where does the Fed derive the funds to distribute, and to whom are these funds given? These are the ethical questions we ponder.
There’s something profoundly unsettling about a system that thrives on deception. If you’re not already aware, contemporary economic practices, particularly those overseen by central bankers, amount to blatant fraud. Indirect theft is a foundation of these reckless monetary ventures.
Yet, many remain oblivious. Some choose to ignore it, while others in academia craft theories to rationalize it.
Frankly, we find it appalling. It’s hard to fathom that the actions of the Federal Reserve and Treasury are even permissible, let alone ethical. However, we recognize that serious repercussions lie ahead due to this widespread theft.
In essence, there will be dire consequences for all of us. The vast web of debt is built on a shaky foundation of deceit. A minor financial disturbance could trigger a catastrophic collapse.
Of course, the astute individuals at the Fed argue that modern monetary policies, such as zero interest rate policies and quantitative easing, will lead to prosperity and stabilize the economic cycle. However, the actual outcomes have been starkly different from what they promised. Here’s why…
Dillweed Economics
A “dillweed,” in its popular sense, refers to someone lacking common sense or intelligence. Policies can similarly fall under the dillweed category. When dillweed individuals implement dillweed policies, a new classification of folly emerges.
Several years ago, former Federal Reserve Chairman Ben Bernanke, armed with an economics PhD and a penchant for history, led us into the realm of dillweed economics. After the collapse of Lehman Brothers, he feared we were on the brink of another Great Depression and reacted hastily. His subsequent actions, namely adopting ultra-low interest rates and engaging in quantitative easing, now propel us toward an even greater economic downturn.
Escaping the clutches of dillweed economics is far more challenging than entering them. Terminating the Fed’s extensive interference in credit markets would send financial systems and governmental budgets into turmoil. Allowing Treasury rates to reflect genuine market demand, rather than the manipulated rates set by the Fed, would lead to bankruptcies for governments and borrowers on a global scale.
Without the influx of artificially generated currency, the fabricated demand supported by cheap credit will evaporate. Marginal jobs and tenuous economic activities will disappear, along with crucial social safety nets such as Social Security and Medicare.
In this environment, further dillweed economic policies are imperative for maintaining the status quo. The illusion that those in power can effortlessly resolve economic issues must persist. There’s no path to redemption; dillweed economics will relentlessly unfold toward its grim conclusion.
While we are dismayed by our circumstances, it seems that significant change may only come after we experience even greater challenges. Nevertheless, there are steps you can take personally to help mitigate the impact. Discover one unique opportunity here.
Sincerely,
MN Gordon
for Economic Prism
