America is an economic Titanic.

The Titanic – By Dr. Paul Rux

The following is a response by Dr. Rux on the recent housing mortage meltdown to one of his business ethics students.

1) The federal government is the original gangster. It printed money to inflate the amount of available credit in order to create a false sense of prosperity so Bush and the other gangsters could win election.

In the old days, people gave out "free beer" to potential voters to bribe them. In this case, they gave out "free credit" to create a sense of economic well-being for electoral reasons.

The "free credit" comes from printing money, which is going to set of a hyperinflation that will ruin what is left of our economy.

There was no oversight of this, because the banksters who control the political gangsters did not want oversight, limits to their economic terrorism. It is the government, not our government.

2) The banksters, in turn, used this "free credit" to sucker persons whose eyes were bigger than their pocketbooks to purchase real estate. It also caused a bubble in commercial real estate, which is going to be the next jolt to the economy when this bubble blows up in the near future.

The banksters loaned money without regard to the ability of the sucker customer to repay; the sucker customers gladly used the money to live beyond their means. Now this crowd is asking you and me to pay for this with bailouts - and the eventual hyperinflation that will result from the bailouts. Nobody bails out you or me.

3) The banksters, moreover, took the mortgages created with "free credit" and sold them to foreign banksters. The foreign banksters did not know, or want to know, or care - that these mortgages would melt down in time.

Now, the foreign banksters are facing ruin too - and their countries with them. It is the old human weakness: get something for nothing. There is no such thing, unless you are a bankster or gangster. Foreign countries are going to hate us for this damage.

4) Creating "free credit" might pass the ethical smell test if it resulted in the creation of infrastructures that actually produced tangible items - cars, TVs, furniture, etc.

All of this credit however went into speculation, paper gambling, if you like, and has not created one factory to provide ongoing jobs for our people. It was wasted. I repeat. It was wasted totally.
What does not happen is as important as what does happen. This applies also to wild printing of fake money to create artificial prosperity for election cycles.

In short, the "free credit" created no jobs. Instead it created a huge financial bubble which is now exploding - at the expense of the little folks. As the Chinese Taoists teach, only bubbles burst.

5) Where are we now? You mention saving money. However, as the government continues to print more and more fake money to pay off the crime families that control it, we are going to experience "hyper-inflation”. Prices will skyrocket! We are at the start, not end, of this trend.

We are going to repeat history and face runaway inflation, as did Germany after World War I, when the government there printed money to pay its war debts. This of course raises a parallel question today. How do we pay for the wars in Iraq and Afghanistan, soon to expand again?

The answer is: print fake money. The result will be that any savings you have in American dollars will erode, evaporate because of the hyperinflation that printing fake money will cause.

This is why people are turning to tangibles like gold instead of fake paper money. Think three times about how you will save wealth. There is a difference between wealth, tangibles, and money, which is a paper promise to give you something of tangible value in the final analysis.

6) The result of this process is economic terrorism. When you destroy jobs, factories, family incomes, etc. the result is no different than bombing those facilities and people.

Bailouts will not save us. They will only create more fake money, which in turn, will ignite hyperinflation, runaway prices. Note the ongoing price rises in our stores for a reality check. The bailouts are an illusion, political public relations. They will do nothing for us average folks.

America is like the Titanic. It is sinking.

The rich folks have their financial lifeboats to escape - the loot. The rest of us are locked into steerage, below decks, as happened to the poor passengers when the Titanic sank. We have no lifeboats, and we are going to go down with the ship. We are paying for the bankster terrorism.

The waves will soon wash over the economic decks. When they do, watch out.