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October 3, 2008
October 2, 2008
Financial Crisis: So much for tirades against American greed
--Peer Steinbruck, German finance minister
Less than a week later, Peer Steinbruck is eating his words as he now states that Europe is "staring into the abyss."
The creation of the Euro, our media-Scribes warned American, would dislodge the almighty dollar from its status as the world's reserve status.
Ironically, the Euro may indeed be in greater trouble than our dollar.
While our fiat money has a mechanism built in with our Federal Reserve to "expand" the money supply (i.e., print more dollars), the Euro has no such central authority. Their banks are now exposed even more than we are and they have no mechanism in place to deal with the situation.
Sadly, when our Treasury Secretary Henry Paulson bails out foreign European banks, he is placing the American taxpayer in charge of bailing out a lot of Western Civilization.
Even this American help is too little.
Already, the governments of Ireland and Greece are going on record of fully supporting all bank deposits in order to prevent bank runs on their institutions. If this is allowed, that would mean that Ireland and Greece get to print the lions share of the Euro currency monopoly money. Other European countries, especially Germany, are not going to stand for that.
German citizens are not going to bail out Southern Europeans. They never wanted to be in the Euro in the first place. They only agreed to the Euro because otherwise they would not have received approval of their East and West Germany reunification. With a successful reunification, Germany may pull out of the Euro anytime it looks to explode. --as in now.
Truth is that all of Western Civilization is in a pickle.
The real credit bubble happened when Arab oil money and Chinese manufacturing money started flowing back to America and Europe as investments to our deficit spending. We did not have products to sell them, so we sold them our assets. More than likely, the source of the money loaned to you to purchase your home came from Saudi Arabia or China.
As with any "supply and demand" situation, the Arabs and Chinese had more supply (our money) that we had demand (assets to buy up). Therefor, they started bidding up asset prices like our mortgages; thereby, creating a bubble.
Seeing the underlying financial standard of the dollar and the Euro depreciate with the bubble bursting and with all this subsequent frenzy of fresh printing-press money, they may very well give up on us and float their own currency.
As stated in my article about the ARC currency, this very plan has been in the works since this summer. The Euro and Dollar could not withstand a gold and oil based ARC standard (Arab-Russia-China) backed by Russia, China and the Arab League.
America has lost her Independence to the Arab oil suppliers and to the Chinese manufactures. Europe is likewise dependant upon Russian oil and gas. Their plan would most likely work to our detriment.
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The Christian Solution © was released March 15, 2008