I don't believe we have hit the bottom yet. There are a lot of families in the upper middle class and above that have taken economic hits through concessions in wages and benefits, who have just now depleted what nesteggs they had stashed away. Many had two breadwinners, with one of them now without a job.
When we do hit bottom, I fear the consequences.
The homes of the above will soon be going into foreclosure also.
Our government doesn't work any different than the international monetary fund or the world bank. If you have ever noticed, these organizations will give loans to nations that are in financial trouble and haven't been able to pay their debts. How can you pay down debt by borrowing more?
Our government does the same thing. We are under a debt monetary system, where all money is created through the extension of credit from private commercial banks, or in the case of government borrowing, through other debt instruments such as bonds. We (must) continue to borrow or the system begins to collapse immediately. If we continue to borrow, we just go deeper into debt. Remember, there is no money created in this system to pay the interest on loans.
When government borrows, we pay for that borrowing in tax increases.
When corporate America borrows, it goes into the cost of living through higher prices for goods and services. When times are good, you pay a premium price for the things you purchase.
When times are bad, the things that you purchased at a premium, lose value and you take a big financial hit, or lose it.
It's simple. We cannot pay debt with debt, but are forced to live under the federal reserve fractional banking debt monetary system. Until congress passes laws that will get us earning our money, rather than borrowing it, we will never solve our financial problems.
Most people think that money is just out there. They have no clue as to it's origin. When I ask people how money is created, they tell me that when they work, they get it from the company they work for.
Then I ask: The company you work for didn't always have money, so where did they get it? They tell me that the company sells their product or service to people like you and me.
Then I say: Wait a minute. We didn't always have money, and the companies we work for didn't always have money, so where does it originate from?
Then when I explain to them that the money they receive from the company they work for, was the debt principle of loans that had been spent into circulation, and captured through commerce by their company, they cannot handle it! It is like destroying their belief system. They cannot accept that we all have been victims of the largest ponzi scheme in the history of man.
All of this indebtedness leads us to the economic situation we are in currently. All of this borrowing and servicing of the interest on this borrowing, the cost of living increases forced on us by corporate borrowing, have made it necessary over the years for the American workers to continually ask for raises.
This evergrowing cost of operating the government and businesses, has taken another toll, and that rears it's head in our inability to compete in the international marketplace.
Millions of our jobs have left the country in order for those businesses to avoid shutting down.
As we take cuts in wages and benefits, cuts in hours, or are replaced by people who will work for peanuts, everything we own is up for grabs, including our country. Wake up America!
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