Voters are rightly furious at the proposal to spend $700 billion that the government doesn't have, just to bail out Wall Street bankers who created the current economic crisis in the first place.
But did you know about the trillions of dollars the Federal Reserve is pumping into the system on top of that?
Or the trillions missing from the Pentagon?
Do you know what the real cost of the bailout of Wall Street may end up being?
In an unfortunate turn of events, a revised bailout plan was approved after the first one failed to pass (which I reported on September 30th). Now we’re in the exact place Ron Paul has been warning us about for years.
This $700 billion bailout may end up providing some short term relief – although recent stock market crashes around the world indicate that it’s failing to do so – but will undoubtedly accelerate the massive decline of the value of the U.S. dollar.
And, what many also do not know is that this bill is NOT a $700 billion dollar bailout, but more like $5 trillion dollars, as reported by Bloomberg news service.
As this video details, the Federal Reserve has created an average of $188 billion per day last week to prop up failing investment banks, and has pumped $630 billion into the global financial system to “alleviate” the worst banking crisis since the Great Depression.
In the last week of September alone, more than $1.5 trillion of newly printed money – backed by nothing but thin air -- was made available in loans to Wall Street.
What you end up with when you keep printing money is inflation – what Ron Paul equates to a tax. What’s really happening is that you are being taxed, without knowing it, to bail out these banks.
For another really interesting video on how the Federal Reserve and our monetary system works, check out http://MeetTheFED.com, featuring Gary Franchi, Managing Editor of Republic Magazine interviewing Ben Bernanke, Federal Reserve Chairman, and Jerry Nelson, Corporate Communications for the Federal Reserve.
Creating the Illusion of Money
A mind-boggling $1 quadrillion (1,000,000,000,000,000) is held globally in exotic financial instruments called derivatives. Derivatives are financial fictions; imaginary money created by leveraging real assets hundreds of times.
Unfortunately, the U.S. mortgage meltdown is now threatening to set off a chain reaction that could burn its way through this fictional-money-bubble. What happens then?
Perfect Example of What Happens When You Run a Country With Monopoly Money
I got a thought-provoking glimpse of what the reality might be like if the Federal Reserve does not stop this insanity when I read an article about the hyperinflation of Zimbabwe. Their inflation rate has now reached 231 million percent.
Economists around the world say Zimbabwe’s economic collapse is gaining velocity, radiating instability across Southern Africa.
What caused this out of control inflation?
Zimbabwe’s government went bankrupt, and in an effort to stay afloat they keep printing ever more money. This destroys the Zimbabwe dollar's value in terms of hard currency, sending the cost of goods, especially anything imported, soaring.
Inflation actually rose so high they had to lop off 10 zeros off the currency in August because the calculators ran out of digits. Had they left it alone, $1 U.S. would now have been worth about 10 trillion Zimbabwean dollars.
For the population, days are spent standing in line at the bank to make the daily maximum withdrawal, just to get by for the day.
The fact that no one in power is listening to the wise words of Ron Paul may end up haunting us all in the decades to come.
Remember the Importance of Focusing Attention on Positive Changes
However, as I’ve said before, fear may be the most real danger right now.
Once you step into the powerful emotion of fear, and you put your intention on what you don't want, you actually activate powerful natural forces that tend to provide you with whatever thoughts you attach strong emotions to – positive or negative.
This is clearly something you want to avoid doing, so stop being afraid of the economy.
It is important for you and your family to CANCEL any negative thoughts about the economy. Personally, I simply yell "Cancel!" and imagine a large red diagonal line going through any image I don't want. The more you and others do that, and focus your attention on the positive changes you do want, the more likely we will all reap the benefits of this positive focus and intention.