The Crux of the Crisis

The economic crisis worsens every day despite the mad government rush to “do something.”

Is the answer to our problem really to print more money and give it to the banks? The banks are then supposed to lend it back to us at interest. Does this make any sense to anyone except bankers?

If you are wondering why we are giving money to the same people who got us into this mess, you are not alone. The bankers and their pundits (the economists) claim to have been blindsided by what they call a credit crunch. They claim they could not have predicted the disaster they created.

I'm here to tell you they are liars. There is no credit crunch. Everything that has happened was completely predictable, and was in fact predicted long ago by people who understand how money works.

Have you ever wondered why money fundamentals are not taught in public school? We don't even teach our kids how to balance their checkbooks. Sure, we tell them that if they had saved a penny during Jesus' lifetime and compounded the interest, they would be quadzillionaires today. Not that anyone lives two thousand years to enjoy the profits.

What they never tell you is that two thousand years ago you couldn't get compound interest on your savings because interest, then known as usury, was outlawed by biblical decree. If you read the Bible, the Torah or the Koran you will come away with the distinct feeling that God disapproves of loaning money at interest.

While you might argue that one or all of these books are not really the word of God, you probably agree there is great wisdom sprinkled into their pages. Someone, man or god, held a pretty strong opinion that usury was not beneficial to mankind.

Modern banking of course understands how beneficial usury is to their bottom lines. Bank of America is so in love with it, they chose to charge my wife 36% interest on her credit card! Credit makes the world go round, so if it's “crunched” the economy grinds to a halt.

So, why is credit now crunched? Given the lack of investment vehicles (the stock market crash, precious metal prices manipulated downward and treasury bonds paying zero percent), an investor should jump at the chance to loan to a well-qualified dupe.

The answer should be obvious. There is not a credit crises, there is a dupe crises. The dupes are out of money to pay interest on the loans they already have.

The known federal deficit of the United States is about $11 trillion. If the government is so far in debt, how can it print more money to give to the banks to loan to you? How does this even make sense?

The average American taxpayer has been outsourced into low wages, owes more money on his house than it's worth and still struggles to work every day hoping things will get better. His credit cards are maxed out and he wonders how long he can afford to pay rising costs for electricity and heat.

So, the problem isn't stingy banks refusing to loan, it the fact that the dupes are all broke.

How did we go broke? We borrowed at interest. In a word, usury. We refinanced and refinanced and refinanced in order to sustain our standard of living until we finally owed so much money that we could no longer afford to refinance. We cannot pay the interest on the debt we have already accumulated.

The ancients understood that usury creates a mountain of debt that inevitably leads to bankruptcy, that's why they outlawed it. The charging of interest (and the taking of dividends – any unearned income) will eventually destroy commerce.

Why isn't this ancient knowledge taught in schools? Why, instead, are degrees in economics handed out to imbeciles who insist commerce can withstand the onslaught of accumulating debt? Because while usury destroys economic systems as a whole, it enriches those who control the printing of money and charging of interest. A few people become extremely wealthy bankrupting their neighbors.

Until the entire system goes bust (as ours is now going), usury is the easiest way to live rich beyond your means. Those at the top, printing the money, live richest of all. The trick, of course, is the same as in any Ponzi scheme – bail out before you go down in flames.

The bankers at the Federal Reserve understand this if the politicians they own do not. That's why they are claiming ignorance and stupidity as their first line of defense against a gullible public. They couldn't possibly have foreseen the consequences of running the entire world into a mountain of debt.

They are hoping to do the same thing now as they have ever done with usury before. Confuse the hell out of everyone with an economic depression followed by a nice world war. Then, it's Kumbaya, let's all forgive one another's debts and start all over again with a new currency.

The same snakes that just bankrupted and killed you will then offer you crumbs from the vast hoard they stole from you via foreclosure – and you'll be thankful to get it, won't you?

The debt you owed to them was never their primary concern. They know debt accumulates through interest until it destroys society. What they want from you, what they live on, is the interest payments.