Over the last week, I’ve been watching events unfolding with growing concern, and while I truly hate the idea that I might inadvertently offer myself up as just one more “Chicken Little,” I must in all candor tell you that because the sky is not falling now, do not assume it will not fall tomorrow. We’ve listened to the media talking heads, the pundits, the analysts, the economists, and even the politicians, and virtually all of them have made rosy predictions and hopeful prognostications for the immediate future, and your federal government feeds this view with its own phony numbers, endlessly amendable and adjustable statistics, and a common lie that consists of telling you: “It’s all going to be just fine.” As I’ve reported to you within the last few weeks, more downgrades were coming, and banks moved Euro liabilities under cover of FDIC, but now the downgrades are here. There will be more. When the Euro falls, it may very well take the United States with it. The time to prepare has very nearly expired, and there will be no turning back.
Ladies and gentlemen, I am now going to tell you the truth, and I will place no bunting of red, white and blue around it, because you deserve to know it all lest you be left penniless and homeless and starving in the streets, unable to defend yourself from the cold, never mind the brigands that will likely swarm our cities: If the Euro collapses, the blow-back may not merely damage our economy, but thoroughly destroy it, and there is absolutely nothing we can do but deepen and worsen the results by more delaying tactics. Businesses are scrambling to come up with options if the Euro collapses, but the truth is that many of them are now in a position from which they will not recover. The choices you make now may mean the literal life or death of you, but it’s important that you know how we arrived here so that if ever there is a chance to arise anew, you will already know the answer. Even now, the statists of Europe are seeking ways to loot you. One world government will come riding in on the back of this nightmarish trojan horse.
It is a truism that few wish to acknowledge that one cannot consume more than one produces without eventually becoming subject to the sort of collapse we now face. It goes for nations as well as people, and just as people can hide the growing disparity between their financial underpinnings and their lifestyles for a time, nations can do so, and for even longer and to a greater degree because they can pilfer the value of the few still producing among their citizens. The problem is that just like individuals, even nations and unions of nations run afoul of nature’s basic truism requiring one to produce at least as much as one consumes. Herein lies the sickening truth of the impending Euro collapse, and the collapse of all those who have tied themselves to the Euro, including the United States. For far too long, far too many of us have lived without producing while others camouflaged their bankruptcy, willingly or [more often] unwillingly carrying their burdens. No nation can survive that. No people can sustain that.
The single currency of the European Union was advertised to make them more competitive as a trading bloc with the United States and Asia. In truth, that’s not the whole story. The Euro was also devised as the means by which to buy a little more time before the welfare states of Europe failed. No rational person ever thought otherwise, and every politician from Rome to Madrid to London to Paris and Berlin has known this for two generations or more. Your politicians right here in the good ol’ US of A have known it too, and yet when they had a chance to do something to change it, they instead accelerated it. You might ask: “Why?”
The answer has ever been the same, and it is the endless pursuit of power at the cost of any and every principle. This ambition has blinded mankind almost from the very start of the first civilizations. In our modern society, if you think politicians are the greatest bribe-takers, I urge you to think again: Modern politicians are the greatest source of offers in bribery but the greatest recipients are we the people. You wonder who is guilty? He who offers a bribe is powerless in the face of rejection, but he who accepts that bribe is guilty for all his days. In small increments, and in bits and pieces, the people of Europe were convinced to surrender their liberty in exchange for small bribes. Over time, the bribes became so large that to maintain them demanded more and more from the producers, until the relative few producers began to join the gravy train. While they bribed your silence and your complicity with the get from your neighbors’ pockets, be assured that they have been busily lining their own.
The Euro was concocted to hide this. All those nations whose fiscal problems are now manifest have always been unstable, and it’s because successive generations of politicians in those nations have been carrying out this sort of bribery of its citizenry from time immemorial. The French revolution was a Marxist affair, though not known by that name in those days, and nations such as Greece, Italy, and Spain haven’t been fiscally responsible for centuries. The disease is not heritable, but it often visits subsequent generations, because it is born of a bad idea that is passed from one to the next. That idea is statism. Statism is the ruin of mankind, and always has been, because its fundamental claim is that man exists to serve the state before himself. Whether statism took the form of Monarchy, Theocracy, Democracy, or some brand of Totalitarianism, it has ever been the bane of human existence, and yet no idea has more staying power among people than this one. It plays upon one of mankind’s greatest weaknesses: The temptation of covetousness and envy, born ever of sloth. It is enabled by the deadliest sins against nature, or nature’s God. It offers the false promise of a life without discomfort, effort, or pain, but in the end, it returns only misery.
A little more than a century ago, this idea began to catch on even in America. It has slowly grown as a cancer, and it has spread its tendrils through every community, on every level, and in all things. We’ve been hiding it, too. This disease has its own fuel, and the Federal Reserve provides it, and not surprisingly, has been providing it for most of the time in question: Easy money. Low interest rates and plentiful credit has made this possible. Consider the individual who runs up a pocket-full of credit cards, and struggles to make the monthly minimum payments. That’s our nation. Just as a weak-minded, or necessity-driven person can quickly run into debt to a dangerous level, so too can a country, and just as the easy availability of credit can act as an inducement for an individual, so does it work as a great temptation to nations. Nations fall when they permit politicians to bribe them with credit. Look around you: How many votes have been bought by a budget that is nearly two-thirds entitlement programs?
As has been reported this week, our own Federal Reserve loaned out over $7 Trillion at impossibly low interest rates. That’s half the GDP of the United States, in loans. Yet you may rightly ask: Where does the Fed get the money? Answer: It loans it into existence, i.e., it prints it. Only the promise of the debtor to pay gives it any value, but if that debtor defaults, well, the value of the dollar is diminished accordingly, but even if the debtor makes payments, there is always risk attached, and that risk is shown in inflation. This is why the Credit rating of the US Government has been such a big deal: It is the single largest debtor, and substantially so. As our government looks less and less likely to be able to repay its debts, while it continues to borrow money at an increasing pace, what do you suppose will happen to the value of your money? Why did Thanksgiving dinner cost an average of 13% more this year than last? Next year’s will cost 20% more, or worse.
This is the real truth of this situation, and unless and until you are ready to confront it, and to reject the myriad bribes from politicians, you are going to see things grow much worse. Perhaps most frightening, they may have successfully engineered not only the collapse of the Euro, but also the Dollar, and every other major currency on the planet, but what they will offer as a “fix” is a global currency that will make of us all slaves to the same masters. They will offer you more bribes, or at least threaten to take away the ones you currently enjoy, all so you will go along.
Ladies and gentlemen, make no mistake about it: With the current crisis ready to explode in Europe, and with the state of our own economy, under the willfully absent leadership of Barack Obama, we are waiting on the edge of collapse. This may be a most un-Merry Christmas, and it only promises to worsen. If we somehow survive as a nation, it will be surprising, but it will only have been possible if we reject calls for a global currency even at the expense of the bribes we are now so accustomed to taking that we believe them to be our entitlements. From now until then, you can spend your time in contemplation: Do you prefer life as a slave? Many of your neighbors will say “yes” without flinching. Somehow, somewhere, we must find the strength to say “No.” Prepare, my friends, and by the strength of your preparations may the republic endure.