Jul 03 2008
The US Economy: Elements of Problem Solving
By Naziyr Yishmael
As most of us are experiencing, the U.S. economy is going through some harsh times, to say the least. I’ve listened to and read what many have to say on the subject as to why we are in this predicament. Most of these people are quick to point out the problem but slow or hesitant to provide solutions. Maybe that’s because it doesn’t take as much mental aptitude to disseminate what we pickup from others as it does to actually understand the problem, gather and evaluate the information, examine the situation and then determine the best solutions. From this point we can intelligently view the roads that we have an option to take and ascertain which will lead to the best scenarios and repercussions that we are willing to live with. These are the elements of problem solving.So, what is the problem? The problem is the
U.S. economy. Let’s look at the indicators, such as gas prices at about $4.30 a gallon, increasing food prices, the price of precious metals and commodities on the rise like the price of gold at around $900 and ounce, the fall of the stock market, falling values in real estate and the credit crunch as it is being called; to name a few. Let’s not forget that wages in the
U.S. have at best plateau-ed and in many cases declined. Unemployment is said to have risen to 5.5% for the month of May but is really closer to 9.7%. Now I know that there is a big discrepancy between 5.5% and 9.7%. So allow me to explain just in case some don’t know: The 5.5% unemployment includes those that are looking for jobs and are receiving unemployment benefits, whereas the 9.7% includes those that are considered the “marginally attached workers.” According to The Bureau of Labor and Statistics, this includes people that are working part-time but want to work full time and people that have run out of unemployment benefits and may or may not be looking for employment on a regular basis but have looked in the recent past. Now let’s understand the problem. When the dollar goes down in value then things tend to cost more. This is an indication of inflation. Now what throws a wrench in the idea that inflation is the problem is the decline or depreciation of the value of houses and stocks. But when you take in consideration the past loose lending practices and the questionable purchases of dreamy eyed home owners buying overpriced houses then we begin to see a through the fog.
Most people don’t seem to comprehend basic economics. Unfortunately that’s not necessarily always because we were asleep in school because to this day there are economic teachers telling high school students that the dollar is backed by a gold standard. Not only teachers, but there are politicians that believe this same thing; that the dollar is backed by a gold standard. And we are looking for these same politicians to make laws and policies to get us out of this mess. In my experiences I’ve never known ignorance to be very resourceful. So I guess we add this to the list of problems though there is more that cannot be mentioned or else I may as well just write a book(Fluoridation for example). Obviously the Federal Reserve has the same problem with basic economics. I make this statement because the policy of the Federal Reserve has been to “create” more Federal Reserve Notes when the dollar tends to drop in value. Let me put this in perspective; when a fire fighter approaches a building on fire, he doesn’t grab his hose and attach it to a gas pump. No, he attaches it to a water hydrant. Basic economics; when you put more notes in circulation it devalues the notes already in circulation. Where’d we get these guys? (Another story that I will deal with later)
Now the decline home values and the ensuing credit crisis was the first obvious indicator that there was a problem with the economy. This was really because people weren’t looking at the past cycles of the real estate market. They were gold struck and the powers that be made it easy to get credit that we could not afford to pay back, then looked on and said; “Oh Yeah, we got ‘em.” People began making dough that hadn’t seen this type of money before. We started flippin’ out with flip this house and flip that house like flippin crazy. I really don’t know how many shows were dedicated to this trend.
California headed up the nut cases. Who would buy a two bedroom house for $500K? Some of you now are saying ‘that’s nothing…’ My point exactly. I heard this phrase beat to death by just about every real estate guru that was showing everyone how to invest in real estate; “over 90% of the rich build wealth through real estate.” Yeah maybe, but they also knew their market and the history of the industry in order to buy right. Not to say that many seasoned investors didn’t get in to some trouble as well. But I know many that are still making good money. So never the less when the value of the dollar drops dramatically, people tend to stop spending as much. This creates a problem because this economy is based on consumption and debt. When it is tougher to get credit for a loan because you’re overextended the economy tends to bog down.
So another problem that I will deal with here; an economy that is based on debt and providing credit rather than production will no doubt come to an end. Why? Because the bill will always come due and there is always some unforeseen circumstance that like Iraq and
Iran or non OPEC conforming countries (unforeseen by the average citizen anyway). Do you really think that the U.S. attacked
Iraq because of weapons of mass destruction? Please, then why did the U.S. never attack the Soviet Union, China, Pakistan,
North Korea, etc… No! Saddam Hussein wouldn’t agree to the U.S. dollar standard when selling oil. Oh and
Iran….
Iran has promised that they will begin undermining the dollar by selling cheap oil to the world and use the euro as a standard. Can you say bye-bye dollar and
U.S. economy and hello to WWIII to try and keep it alive? Check the history of OPEC. Henry Kissinger helped set up the situation that would keep the American dollar afloat for as long as it has been. When the U.S. buys OPEC oil and makes the Saudi’s rich they had to promise to buy
U.S. debt. Iraq and
Iran create problems with this agreement because they did not want to follow suit. Why do you think that the Arab world who is alleged to hate the west and is claimed to be looking forward to the Holy War allowed the U.S, to attack
Iraq, an Islamic country? If
Iran continues to move forward with their promise to sell oil outside of the U.S. dollar standard, the Central Bankers will create a situation to go to war (period). Right now
America is their big gun.
So the solution; either get on board with the Central Bankers System and support their endeavors which will in all likeliness call for WWIII and to allow the IMF and World Bank to use gasoline prices as a form of taxation. I say WWIII because Russia and China have vowed to protect, or react to an attack on
Iran. Learn their game of monopoly (because that is what it is) and play by the rules and make money as you can. Or, learn how to sever the
U.S. economy from the central bank and their system. A central banking system is illegal in the first place (actually I should say unconstitutional) and most people don’t even know it or the difference.
Let’s get off the fluoride, stop allowing them to inject you and your children with poisons, eat food that actually nourishes the brain. WAKE UP! That is unless you want to be a zombie. Now you might be asking; why is he going off on a tangent? At the beginning of this blog I wrote that maybe the reason that people easily recognize and disseminate the problem and not provide solutions could be because of lack of mental aptitude. Maybe that wasn’t fair on my part; maybe it could because of the raw fear that people realize when we look at the scope of the problems and what we “must” do in order to truly live in a free society. Or maybe it’s a system that has been put together to obtain a specific result. That result is so that we won’t fight back and won’t care that certain aspects of servitude have been, or will be put upon us. Maybe it’s all the above.
The truth of the matter is here and upon us and we can’t ignore it any longer. If you honestly think that the Federal Reserve cares about this economy and the people that die from the decisions that they make and not about lining their pockets and establish more control, if you think that any modern elected president and most politicians will stand up for what is truly best for you and your family I really hope that you are correct. But everything that I have seen and the illogical and diabolical decisions that we see made with peoples very lives shows me that we are in for the trip of an eon. In the least I hope that is stirring inside some sort of rising, some sort of unsettling. Or I hope that everything that I have learned and still learning and everything that I am saying is wrong. But I do think that
Oklahoma’s declaration of sovereignty is a start. So maybe we are waking up.
Yes, I know that I did touch on a few things that I didn’t expand on. No worries, I will expand on these in the very near future, so don’t go too far.
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