Breaking News: Senator Vitter Cosponsor Senate Bill S.604

We Must Stop Them Before They Bankrupt Us

If you had a financial adviser that spent your family into generational debt, you would fire him. Maybe you would even take him to court for malpractice. We are inculcated with the belief that the Federal Reserve is one of the great linchpins of our free market economic system and that the people’s representatives in Congress can be trusted to “manage the economy”.

Judge the System by Its Results

We believe that you judge a tree by its fruit. Regardless of what those on the left and right say, our current system has spent us into generational debt and we stand here on the brink of national financial ruin.

It is “Our Time to Stand”

It is time for men of good conscience to say “enough”! It is time for each of us to do our part to restore integrity and economic solidity to our country. It is time to roll back the bureaucratic meddling and restore an honest money system.

Some Hard Economic Facts

• Annual deficits of $1 trillion for the next several years.
• Our national debt is $11 trillion … and counting.
• Our unfunded liabilities amount to $99.2 trillion.
• The Fed “created” and injected $12.8 trillion into the US economy.
• Why not audit the Fed?
• Why does Bernanke refuse to tell Congress where $2 trillion went?

$1 Trillion Annual Budget Deficits

Some economists say that deficits don’t matter; that they the sign of a healthy economy. David Walker, former Comptroller General of the Government Accountability Office (GAO) made it clear that deficits do matter in this testimony before the House of Representatives. In fact, David Walker felt so strongly that government finances were out of control, that he resigned his position to head a foundation aimed at bringing government spending under control.

One of the problems with government finances, is that the numbers are so huge that they almost make no sense to the average person. How much is a trillion dollars? Well, here is Glenn Beck’s view. That $1 trillion is almost 10% of GDP. To put this in the context of household finances, let’s assume that you run a household that has an income of $100,000. If you ran your finances like the government, you would borrow $10,000/year to pay for your lifestyle. This money is borrowed at principle and interest and you must pay it back. As time goes by, your debt payments will consume your entire income!

This is what the government is doing with our public finances. It is outrageous, immoral and destined to impoverish our children for generations. Our generation is the one that must make a stand.

National Debt is $11 Trillion … and Counting

Our national debt is now approaching the GDP of the entire country.

Comparing this to the household finances, our person that earns $100,000, spends $110,000 annually and borrows $10,000 every year to finance his spending, now has racked up a debt of $100,000! Only in his case, it is his debt; either unsecured or collateralized. In the governments case, the debt is secured: Against the labor of us, our families and generations of children yet to be born.

Unfunded Liabilities of $99.2 Trillion

So, what is an unfunded liability? An unfunded liability is a promise to pay in the future, money for which the means has not been allocated. In other words, an unfunded liability is based on hoping the money shows up! Maybe if the unfunded liabilities were small, this would be OK. But what are they?

Richard Fisher is the President and CEO of the Federal Reserve Bank of Dallas. He gave a speech titled, “Storms on the Horizon” in which he details the current unfunded liabilities of the United States government. Richard Fisher calculates these liabilities at $99.2 trillion!

In other words, the United States government has promises to pay, for which no funds have been allocated and which amount to nine times what the entire country produces in one year. In the case of “average Joe”, our $100,000 a year man, he has current debts of $100,000, is accumulating more debt at $10,000/year and he has made promises to pay of $900,000! Do you think “average Joe” is insolvent? Do you think our government is insolvent?

The Government and the Fed “Created” or Injected $12.8 Trillion into the US Economy

The so called “financial rescue” has almost cost the entire annual wealth of the nation! According to Bloomberg, this is now at $12.8 trillion. So, let’s put this another way: To save our economy, we’ve spent our economy! This is madness. Where is all the money going? Who is going to pay? Well, the last part we know: You, me, and generations of our children. Are they protecting the economy for you and me, or are they protecting the system that allows them to tax and spend with impunity?

To Audit, or Not to Audit the Fed?

So, we have a non-governmental organization that “participates” in government functions and has the power to just “create money” and spend it where it sees fit (see below). Of course, we’re talking about the Federal Reserve. I bet an organization with that power comes under some close scrutiny, right? Wrong. Congress does not even have the right to audit the Federal Reserve, unless the Federal Reserve agrees!

The Federal Reserve has never been audited, and the appearance of the Fed Chairman before the government banking committees is nothing more than a formality. Representative Ron Paul, TX has introduced H.R. 1207 which changes the rules, allowing Congress to audit the Fed, without the Fed’s permission. Please, urge your representative to support this bill. What is the Fed trying to hide?

Why Does Bernanke Refuse to Tell Congress Where He Spent $2 Trillion?

Do you also realize that banks create money when they lend it? They don’t have it, they create it out of thin air! This is the Dallas Federal Reserve bank describing the process (scroll down the page when you link to the document).

So, now you know that the Fed simply “creates” money, I bet you would like to know where it spent $2.2 trillion dollars it created? So would the Senate, but Bernanke doesn’t think he needs to answer:

Amazing! Think about this: We have a private institution that can create that which all others must work for (money), spend it on whatever it feels like and then refuses to tell the American people where it spent the money. If you had the ability to create money, would you not use it to further your interests and agenda? Could you buy influence? Could you grant yourself money and power? Are you still wondering why the banks keep getting bailed out?

Maybe, just maybe, we have the best Congress money can buy? You be the judge.