There are a lot of stories making their rounds in the Internet email loops about a possible bank holiday and subsequent devaluation of the dollar. It is just common sense that one cannot spend 1,000 times more than he has in his checkbook and not have severe consequences. And that is the case with our federal government. I have heard over and over again liberal spenders in Congress saying that "you have to spend money to make money." While this adage is true when investing in a "for profit" venture with an expected return on investment, there is no such plan in place for any of the government socialization programs offered by this current Administration.
The man who occupies the Oval Office (OOO) sent his best economists and financial representatives behind closed door meetings with Chinese officials to convince the country who holds about a trillion dollars of US debt that the US will not let deficits or inflation jeopardize the value of Chinese investments. Problem is, there is not a successful economic model that would support running deficits at the rate of trillions of dollars that would not cause inflation or would cause the value of investments to increase. The US and China released a joint statement that the US would lower its deficit to what they called "sustainable" levels in four years.
The question is, however, how in the world can one expect to lower the deficit in four years to a mere fraction of what it will be when all the government spending is institutionalized? Keep in mind that huge government bureaucracies are being set in place, requiring more money. The ability of corporations and private citizens to sustain the type of tax increases it will take under this Administration's economic philosophy doesn't exist. It would be impossible. Except that America be "remade" into a total socialist economy dependent upon government control, there is no ability by the American people to pay for what has taken place in the last nine months, let alone to sustain it.
Hence there are the fear emails circulating the Internet. Some people foresee that economic disaster is waiting in ambush. And they are more right than wrong. This Administration could very well be destroying the free market system, knowing that people will have no place to turn except to the government - a government that will institute socialism. The question of what to do looms. We must be vocal. We must exercise our ballot options. We must arise to a revolutionary activity level. And we must pray and act out of righteousness rather than fear. 2 Timothy 1:7 says,
"For God has not given us the spirit of fear; but of power, and of love and of a sound mind."Time to pray. Time to act.
US STOCKS-Wall St drops as orders data, China spur caution - Reuters
Dollar Values Plunge Worldwide - The New American
Outsider: America the debtor loses ground to lender China - Vernon County Broadcaster
China economy growing again while US limps - KVIA.com