Why the EU Monetary System is collapsing!
The Most Incompetent News Coverage Since the Lead-up to G. W. Bush's Invasion Of Iraq!
We are presently experiencing the greatest lack of competent news coverage by our main stream news agencies since President George W. Bush successfully used a pack of lies to "morally justify" his invasion of Iraq (which, by the way, caused the violent deaths of FAR more Americans than were killed by Osama Bin Laden's 9/11 attack). This time the issue is what our main stream news agencies have NOT been telling their audiences regarding the true CAUSES of the debt crises in the EU and the US. You don't need a slide rule, calculator, or computer to figure this out. It is a problem with debt-based monetary systems that has been known for centuries. Most of the US money supply of US Dollars is created as bank debt. When a bank creates a $1,000 loan, it creates $1,000 (in most cases "out of thin air") and then over time collects, say for example, $1,100 in principle and interest. But where did that extra $100 (which that bank did NOT add to our nation's money supply) come from? How was that $100 gap in our nation's money supply filled? In many cases, that gap has been filled by the borrowers of the original loan who took out further loans in order to fill that gap, but that only perpetuates the interest gap problem. Ultimately, the accumulating interest gaps in our money supply have been filled by our national government's "deficit spending." But the EU (and its member nations) don't have the authority to use "deficit spending" to effectively fill the rapidly growing interest gaps in their euro money supply. THAT is why the EU monetary system is now in the process of collapsing! EVERY EURO THAT HAS BEEN USED TO PAY FOR INTEREST ON PAID-OFF LOANS IS ONE EURO MORE THAN THE TOTAL NUMBER OF EUROS THAT THE EU BANKS CREATED WHEN MAKING THOSE LOANS! The whole EU monetary system is now depending on the "life support" of low interest loans provided by the US Federal Reserve. Although the Fed's cheap loans may help to fill a portion of the EU's accumulation of interest gaps for a while, they are still just loans, which means that they will have to be repaid soon. So those loans are only perpetuating the problem, thereby allowing the overall problem to grow even worse.
Now, because our main stream news agencies have been utterly failing to educate their audiences about such otherwise obvious matters, our Senate is now seriously considering passing a "Balanced Budget Amendment" which would eliminate our own government's ability to fill those accumulating interest gaps in our own money supply, thereby destroying our own economy just as surely as the EU monetary system is now destroying the EU economy.
Fortunately, Congressman Kucinich has submitted H.R. 2990, "The National Emergency Employment Defense Act" (a.k.a. "The NEED Act") which will not only solve that interest gap problem, it will also jump-start our economy with massive infrastructure projects (WITHOUT adding to our "national debt"), and over time it will completely remove the tax burden of a "national debt" that our children and grandchildren will otherwise have to pay.
So, are YOU going to simply stand by and watch as our government commits economic suicide by enacting a "Balance Budget Amendment" while our main stream news agencies continue to ignore (or censor) the only REALISTIC solution for our economic problems (H.R. 2990) which is presently being considered by Congress?
www.onesalt.com (one grain of salt)
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Last modified on Sunday, December 11, 2011