Howard_T

Debt Deflation, Money Creation and the Aftermath

The situations of the Weimar Republic in the 1920s and of the USA in the 2000s are not dissimilar. Germany was saddled with an enormous war debt and a shattered economy. Rather than forgive all or part of the debt, the allies insisted on full repayment. Germany had no ability to borrow, and thus taxed whatever it could. Inflation ran rampant and personal savings disappeared. The US did what it could to loan money to Germany, but it wasn't enough. In the US today, we are running ourselves deeply into debt, our creditors nations will soon be in a position where they can do no more to help, and we will be forced into the hyperinflation of the Weimar Republic.

In 1930s Germany, the discontented found a demagogue on a soap box. Through violence on the streets, he was able to pack the legislature, and forced through a series of acts that allowed him to become the dictator.

I do not compare anyone in the current or former administrations to this monster, but I caution all of us who stand by and allow the Constitution to be trampled upon by those who are supposed to be upholding it. We have a glib and well-meaning chief executive who cannot or will not see through the actions of those who wish to seize control of our government. It is up to us to remove those who sell us out for the sake of political pandering. We must start now to prepare for November of 2010. If your representative or senator has taken a firm position against the current orgy of borrowing and spending, then do all you can to keep him or her in office. If, on the other hand, he or she has caved in to the special interests in order to forward some pet project and thus gain votes, find another candidate and do all in your power to elect him or her. It is not too late, but unless we do something soon, we are doomed to an economy run not for profit or efficiency but for the good of those with political clout.