SOLVING OUR NATION’S CREDIT ADDICTION

By Domenick Maglio PhD Neo Traditionalist

“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance” Cicero, 55 BC.

History repeats itself although the officialdom has not learned its lessons. Alan Greenspan, former long-term head of the Federal Reserve, consistently assured the American people that the 5-year housing boom would not negatively affect the national economy. On October 23, 2008, instead of taking responsibility for not stopping fraud and reckless financial practices, he stated in front of the House Oversight Committee that the present “melt-down” had revealed a flaw in a lifetime of economic thinking and left him in a state of “shocked disbelief.” He had to know the housing bubble, like the “Dot.Com” bubble would eventually burst.

What goes up must come down except for powerful government elites. Arrogantly our nation’s elites through the privately owned corporation, the Federal Reserve, are attempting to alter the natural laws of economics. Ben Bernake, presently the head of the Federal Reserve, told Congress on October 19, 2008 that another multi billion-dollar stimulus package will be needed. This statement gave a blessing to throwing more of the taxpayer’s dollars into propping up an out-of-control speculative boom.

The elite financial gurus of our nation insist we need to loosen credit so people can buy houses, autos and other large purchases so we can keep the economy humming. Increasing the money supply lowers the value of each dollar. Anyone who recently traveled to Europe knows the dollar has fallen to 65% of its value compared to the Euro. Eventually if we continue without cutting back on our spending we will be like the German Weinberg republic where a person needed a wheelbarrow full of money to buy a loaf of bread.

Most Americans have been pragmatic not delusional citizens. They understood that there are economic downturn periods. When times are prosperous they know they had to save and live within their means.

Times have changed in balancing our budget. Americans have the lowest percentage of savings and the highest level of bankruptcy in our history. With the constant barrage of no money down, buy on credit, spend, spend, spend, we have jumped on the bandwagon of living for today and forget about tomorrow’s obligations.

 “Credit addiction” has not only invaded the common sense of many citizens, through the consumerism propaganda campaign, but government/corporate elites appear to also have become addicted to spending money they do not have. Through the immoral exchange of kickbacks for corporate welfare congressmen sold out their sacred responsibility of balancing the budget.

As with any addiction you reach a pivotal point where you choose to face painful withdrawal or you choose to suffer an agonizing death. Many of our citizens and now our governmental representatives have to decide to stop kidding ourselves and begin the difficult task of living within our budgets or suffer personal or national disaster. Not many sane Americans want to be a slave to a personal or national addiction.

Our government and corporate elites have to admit they are addicted to “loose money” and bailouts. By acknowledging they created and sustained a false “boom market” can they begin the process of righting this artificial economy. Passing laws, backed by our treasury to give credit to people and now corporations, who cannot pay them back is fertile ground for corruption and another Great Depression.

Alan Greenspan can do our nation a great service by admitting the housing boom was largely his fault and not a flaw of the free market economy. He turned a blind eye to Fannie Mae, Freddie Mac and CEO shenanigans and kept the interest rate of borrowing money at unprecedented lows that spurred on reckless lending. His policy as well as that of his protégé, Ben Bernake, was to continually increase liquidity: the money supply, by printing more money, which lowered the value of our currency.

By not allowing the free market system to work we are compounding, not solving the problem. The bitter medicine is to let the free market set home prices no matter how low they fall and determine solvency of corporations no matter the political influence or the size of the corporation. No industry or international company is too big to fail.

As the truth of the loose morals and money debacle surfaces, these elites who perpetuate this pillage of our economic system will be forced to step down from their non-elected positions of power and our corrupt politicians need to be voted out of office.

Only by exposing the real culprits and their destructive policies can our economy’s credit addiction be held in check for the benefit of all responsible Americans.

Dr. Maglio is the author of Invasion Within and Essential Parenting.  He is a psychotherapist and the owner/director of Wider Horizons School.

Visit: www.drmaglio.com.