Economics 101 (ish)

From what I have been hearing in the alternative media, the economy in the United States is already in recession. Wait. What did you say? The mainstream media is claiming things are looking up? That the GDP numbers just came out and its up all most 3%.

I have to repeat, again here, I am NOT a trained economic/finance expert. I’m married to a man who is and I’m a pretty smart person myself.

From what I heard on an X22 Report YouTube video posted on Friday, the GDP numbers are just temporarily inflated by a large exportation of soybeans that takes up about 2% of the almost 3% number. And, you do know that the insurance premiums paid for “Obamacare” are counted as part of the Gross Domestic Product (GDP). In the past, the GDP was a measure of Products made and sold in and by this country. Guess not anymore!!

Here is the, brief, class in economics: have you ever noticed that when our government (or any  government with a Central Bank) is out of money, they just “print” more? As I said in an earlier post, Western governments do not print their own money any longer. The Central Bank “makes” the money and “loans” it to the government. What is really messed up and hard to wrap your head around, is how Central Bankers view money. They follow the economic model developed by the British Economist John Maynard Keynes in the 1930’s when he published  “The General Theory of Employment, Interest and Money” (1935-36). This work has influenced Western ever since. For the purpose of this post, the one idea in his theory I want to bring up is this: if a government is in financial trouble, the only way out is to print (borrow) more money. We, regular people, use an economic model more inline with Austrian School of economics. This model says if you are out of money, stop spending, plug any leaks and pay down your debts. Can you imagine what would happen to you if you handled your finances like the government does??!!?? You are in the hole, can’t pay back your previous loans from the bank and you go to the bank to borrow more money to make payments on the previous loans and pay your other bills. A couple months later, you’re in the same place as before, so you go to the bank to borrow more money. Just how well would that work out for you???? Even, though you have a good job with a steady income, what would the bank tell you??? Debt consolidation loans are a different subject and NOT one governments use. As usual, governments don’t follow the same laws we have to. How many of you remember that huge scandal a couple three decades ago about where Congressmen were writing bad checks to the Congressional Bank? Some of them owed hundreds of thousands of dollars and, as I recall, nothing was ever done to them. Most were re-elected in the next election. The general public have very short memories as a whole and are too busy with their own lives to remember from one month to the next what our elected officials are up to. This HAS to change!! We are seeing the results of this apathy and complete disregard of Washington being played out now. Almost daily, Wikileaks is releasing huge batches of emails from Hillary Clinton’s campaign showing their total disregard and contempt for laws, us and our Constitution. And where are these people? FBI custody? Police custody? And Federal Law Enforcement Branch custody? As of this minute, the answers are, “Nope”! Let’s you and I try that, shall we???!!! Let’s break a few laws and spit on the Constitution!! We’ll email each other about it and plan more fun and games, too! Bet I know where we’ll end up when our antics and plans are made public. And it won’t be free and running around planning more mayhem.

If you want to better understand more about how economics work and I really, really encourage you to do so (trust me, your head won’t explode and your brains won’t run out of your ears), get on good ole’ Google and look up: Rob Kirby, Paul Craig Roberts (the architect of “Reaganomics”) and Gregory Mannarino and “V” the Gorilla Economist at  Rogue Money. All of these links will take you right to their YouTube channels. Mr. Kirby does not have his own channel, but is a frequent guest on Greg and X22Report Spotlight.

This is the best I can give you. The economy in the USA is crashing as we speak and this time, it will make all the recent recessions look like nothing more than a bump on the knee. Stock up now before you can’t buy a loaf of bread for under $100 and milk for less that $250.


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