Farrakhan on Ron Paul & Exposing the Federal Reserve and International Bankers

Europe’s Sovereign Debt Crisis and Germany’s Historic Economic Conundrum

I have been giving the global economic crisis a considerable amount of thought. If you have been reading my essay’s on this blog for any considerable length of time, you are aware of my predictions as early as 2007, with respect to how the US, Greek, French, Spanish, and Italian economies would falter as a function of unsustainable fractional banking practices of central and private banks, poorly formulated and conceived economic political policy, the incessant propensity to employ Keynesian economic philosophy to provide the fasade of short-term solutions to providing economic growth, and how these problems are not due to a liquidity issue but rather a massive debt contraction in which printing and disseminating additional paper money only makes things worse (quantitative easing).

The predicament that Germany finds itself in is unique and historically explains why they have taken the position they have. Many western nations including the US and its major European counterparts have been giving Germany the business for not want to bailout nations heavily burden by debt in which their citizens receive big pension pay outs so that they can retire before age 50 and live club-med life styles.

Since the times of Bismarck, Germany has been considered a threat to the rest of Europe. : This both economically and militarily. Ever since Prussia defeated France in the war of 1870-71, this has been the case. Even after the war, Germany did not really rebound economically until 1895. By the time they did, around 20 years later the First World War had started and in-between that time the British government, among others was taking a page from Napoleon and the US Civil War to destroy German economic growth via an extensive counterfeiting operation.

Unlike the European nations who are in dire economic straits and begging for Germany to take on their massive debt burden, they remember how the Allies dictated the harsh terms in the armistice signed at Compiegne, France. The reparations imposed as a function of the Treaty of Versailles led to hyperinflation in 1923 which only got worse when the depression hit the world in 1929 which resulted in massive deflation. The treaty resulted in Germany giving up an eight of its territory which equaled near 7 million people, all of its international investments and it colonies outside of Europe. Leaving the nation with close to 150 billion Marks in debt.

Neither the European Union nor the US has a Dr. Hjalmar Schact to assist them in this present crisis. It was Schact who revived the 1920s Weimar Republic of Germany from post WW 1 hyperinflation. A period before then which saw a currency exchange rate of 1 trillion Marks for 1 US dollar. German as well as the rest of Europe knows this recent fix is short term and is equal to using dental floss to splint a compound fractured leg. Just today banks in Britain still acknowledge that the euro zone crisis was the biggest threat to the UK's banking system. This is why Germany is reluctant to assist in the massive Euro zone bailout in which they would assume most of the exposure. German foreign minister Guido Westerwelle has rejected the notion that the debt deal agreed in Brussels recently could be renegotiated to give Greece more generous terms while he was speaking in Istanbul.

This is why the World’s central banks (led by the US Federal Reserve) reduced rates to prop up the broken legged Euro zone economy once again. “The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank (ECB), the United States Federal Reserve and the Swiss National Bank on Wednesday announced a coordinated attempt to provide liquidity support to the global financial system to avert further global financial distress.”

The Federal Reserve, in a morning press release, said that it will take measures to provide easier access for European banks that hold dollar-denominated currencies for dollar loans to U.S. currency. This translates simple into Washington politicians from Obama to the Congress made easy millions by buying stocks knowing they were to bail out some countries in Europe.

The bottomline truth about today's Federal Reserve-led coordinated effort by developed worlds' central banks to ease the liquidity problems of European banks is this: It doesn't change anything. European leaders still have the same tough decision to make. Either impose even stricter austerity measures on Europe's struggling nations or force Germany and other stronger European nations to come forward with an even bigger bailout, or, of course, kiss the Euro good-bye. Germany keeps all of this in perspective and in the back of their collective unconscious, they have to remember the Treaty of WW 1 and the hardships of hyper-inflation suffered them and after WW 2. Thus it is no wonder they are hesitant to help the very nations who destroyed their economy. The parliament remembers because they suggest that German participation in bailout process violates limits of acceptable integration within the EU, interfering in sovereign affairs of other member states. This even if Angela Merkel and the German courts do not. The reality is that no matter the German court ruling, its decision has little to do with saving the euro in the long term. The state of Europe will eventually show it’s jaundiced and gangrene infected economic limbs and do as all bacterial infected cells do, and Germany will survive waiting in the wind while the rest of Europe remains helpless.

If I can recall of this history, surely the Germans can and the rest of Europe. But as to the Us Federal Reserve and President Obama, I doubt it and this really scares me about the economic prospect for Americans long-term future, one in which we are trying to create with short-term and temporary fixes.

Shame on You, Washington Politicians

My America is land of the free and home of the brave. But this is only in theory. The actual truth is that the bravest folk in our great nation are those who think, read, who are of the middle and lower classes have no insurance or jobs and tend to be in the military. Yes this is the back bone of our great nation and all of the rest seem to be holding on milking other for their ride.

Take for example our politicians. All I can say is “shame on you.” You cannot do the work of the people and tend to only do what is best for your wealthy associates regardless of party affiliation for the simple truth in policy, action, and money there is no distinction between any politicians in Washington. Last I heard Obama was just as bellicose as Dick Cheney and has dropped more bombs from drones than Donald Rumsfeld ever did.

What if any, additional evidence do we need to see that our political system is completely broken? These super committee fools couldn’t even come up with at least $1.2 trillion in deficit cuts over the next decade in a two month period. Meanwhile back at the ranch, the U.S. national debt has passed the $15 trillion dollar mark and we are facing trillion dollar deficits – can you say national financial disaster. Now we are going to have automatically triggered budget cuts of $1.2 trillion in starting in 2013. And we will have to wait and see because mathematically, we may not have even this many in cuts since they include almost $170 million in savings projected to occur as a function of reduced interest cost on our national debt.

Yep folks, shame on them, they are too weak, ductile and fleecy to roll up their sleeves and do some actual work. They are not brave enough to do what needs to be done and should be ashamed since our men and women fighting over seas in wars they did not ask for are the epitome of bravery.

But what can we expect, my America is a nation that gives a single mother more time in federal prison for lying on her food stamp application than anyone involved in the Wall Street mortgage fraud, sub-prime lending or complex paper schemes that help produce Americas and the worlds debt based conundrums. Last week, U.S. District Judge Henry Wingate sentenced Anita McLemore, 47, the mother of two teenage children, to three years in prison. The mother of two pleaded guilty in July to one count of submitting a false claim to the U.S. Department of Agriculture Temporary Assistance and Food Stamps program.

Ms. McLemore, received $4,367 in benefits. This in comparison to six defendants in two related mortgage fraud cases involving fraudulent loans totaling about $5.8 million received sentences ranging from house arrest to 30 months in prison. In addition to the three-year sentence, Wingate fined McLemore $250 and placed her on supervised release for three years after serving her sentence.

These fools obviously do not get it, from Obama to the Congress, they do not have a clue; they cannot see that as a nation, there is a very good chance that we will suffer another major credit downgrade on U.S. debt. And if this happens, a large proportion of the financial transactions that occur worldwide would not be able to happen if that takes place. No one with the exception of Ron Paul (this is a must see video of Dr. Paul in 11/19/11). He would end the Federal Reserve and starts issuing debt-free money, and move to cut our budget deficits. All these folks on TV want to do is fix a broken system, without out acknowledging that it became broke in 1913, prior to the passage of the Federal Reserve Act, the national debt was only about $2.9 billion.

We are in the last days of the Euro and the Union possibly and we are no better as a nation. According to U.S. Representative Betty Sutton, America has lost an average of 15 manufacturing facilities a day over the last 10 years and last year alone, as a nation we lost an average of 23 manufacturing facilities a day . Data reported by the Economic Policy Institute, notes that our economy loses more than 9000 jobs for every $1 billion of goods that are imported from overseas.

And what do we have to show for it? A dysfunctional Supper Committee, a dysfunctional Congress and a dysfunction White House Administration. I am sorry but shame on all of you Washington, DC politicians. We are suffering, we see the problems, but you don’t and will not listen to us. But why should they? The average net worth for a member of Congress is now approximately 3.8 million dollars and more than 50 percent of the members of the U.S. Congress are millionaires.