By Paul Proctor
March 26, 2009 NewsWithViews.com
It was reported recently that two of the world's superpowers, Russia and China, have called for a new global currency. I believe they're doing this because they know that the U.S. is printing huge amounts of dollars to pay on its own massive debts – debts that other countries, like China, have been financing for years by purchasing U.S. Treasury Bonds. They understand something that most Americans do not – that the more paper money you print, the less it's worth – and now, we're printing it as fast as we can.
The U.S. owes China alone over a trillion dollars. And, that's just one of many countries that we owe money to – countries that have also been buying our bonds.
You see, when you buy a bond, you're lending money and charging interest to the issuer of that bond to be paid upon maturity. If you buy a U. S. Treasury bond, you're lending the U.S. government money for them to spend as they see fit.
When you think of bonds, think of bondage.
Well, for years now, other countries have been buying our bonds so we could in turn buy all of their made-overseas stuff. They were essentially lending their biggest customer the money we needed to buy from them.
But, now that we're not buying nearly as much from anyone anymore, resulting in millions of workers being laid off overseas as foreign factories close down, those countries are not buying as many of our Treasury bonds anymore either. In other words, they're not lending us nearly as much money as they once did.
So now, to get America's bills paid, The Federal Reserve is purchasing those U.S. Treasury bonds other countries used to buy – and to do that, a lot more dollars have to be printed to buy them – and I mean a lot more, because, as nearly everyone knows by now, our debts are quite extraordinary and growing fast.
Well, who controls the printing of money?
You guessed it – the same folks who are lending it to us by purchasing our bonds – a very secret and very private institution called The Federal Reserve. I'll bet you thought they belonged to Uncle Sam, didn't you? No, Uncle Sam belongs to them because, as the Bible teaches, “the borrower is servant to the lender” and the lender here is The Federal Reserve.
For those who have a hard time understanding how all this affects the average person, let me put it as simply as I know how: It means that the price of everything you and I buy is going to start going up and up as The Federal Reserve has more and more money printed over the coming months and years until even the basic necessities of life here become unaffordable – or until the U.S. government steps in and starts initiating price controls, which frankly, is just more socialism.
When prices go up, it's called “inflation.” And, if prices go up really high and really fast, it's called “hyperinflation.” I prefer to call it what it really is: the deflation of the dollar. In other words, the goods and services we purchase day-to-day are not really increasing in value as much as the dollars we use to buy them with are decreasing in value.
They're decreasing in value because The Federal Reserve has entirely too many of them printed to lend out. Again, the more there is of something, including money, the less it's worth.
This sleight-of-hand system, used by The Federal Reserve for decades, makes consumers blame producers, manufacturers, distributors and retailers for rising prices, when they should be blaming those who print all of that money for Congress to waste (I mean spend) – money that is not given to the U.S. government by The Federal Reserve, you understand, but is in fact loaned. And guess who makes the payments on those loans and pays all of the interest on those piles of paper money created out of nothing?
That's right – you and I do – in the form of new and higher taxes.
So, every time a new “stimulus” package is announced, recognize it for what it really is: another huge loan to the American taxpayer to benefit somebody else with payments and interest you and I and our children and grandchildren after us (as taxpayers) will be responsible for paying back to that little private bank called The Federal Reserve.
Would you say the name is a little deceptive?
Over time, the American taxpayer gradually goes broke, even with money in the bank, and becomes the slave of a financial system built upon debt that he or she has absolutely no control over and can never repay.
You see, the loan can never be repaid in full because only the principal is created and loaned out by The Federal Government. You and I, the taxpayer, have to somehow come up with the interest. The Federal Government doesn't print interest – only the principal – which means the taxpayer has to keep borrowing principal to repay interest that was never created to begin with.
Breathtaking, isn’t it?
Now, Russia and China are calling for a new global currency because they know what's coming: The dollar's collapse into absolute worthlessness. Good grief, it's barely worth 4 cents now compared to what it was when The Federal Reserve Act was passed back in 1913. So, frankly, it doesn't have that far to fall; but fall it will, because The Federal Reserve is now mass-producing dollars to lend to the U.S. government to pay its bills – which will all have to be paid back with interest (that was never created) to the very same people who made the money out of nothing but ink and paper and then lent it to us.
Brilliant, don't you think?
Now, it's becoming painfully clear towatchman@usa.com other countries, who have been footing our bills via U.S. Treasury bonds, that some other currency needs to be created as soon as possible to replace the dollar they've been forced to use (as the world's reserve currency) before it collapses completely and leaves everyone around the world scrambling.
How this will actually play out over the next few years is anyone's guess. Some believe regional currencies will emerge, like the controversial “Amero” which would purportedly serve the needs of Mexico, Canada and the U.S. in preparation for a world currency later, while others suggest the accelerating global financial crisis will compel the issuance of a world currency straightaway.
In the meantime, here are some questions for you to consider as all this unfolds in the coming days:
1. What's going to happen to the dollars you have in the bank?
2. Will those dollars be exchangeable for the new currency, whatever it is?
3. If they are exchangeable, will they be worth what the new currency is worth or a lot less?
This is the fiscal future we face, my friends – a future of financial uncertainty.
In spite of these disturbing events, let's remember that ultimately, our fate is not in the hands of corrupt politicians and greedy bankers who are only men themselves, but rather in the hands of the Lord Jesus Christ who Himself was betrayed for 30 pieces of silver and hung on a cross 2000 years ago to pay an enormous debt that you and I could not, so that we might enjoy the eternal treasures of a kingdom not of this world.
But, even if we lose it all here, by trusting Him as both Lord and Saviour, we stand to gain so much more hereafter.
Do not lay up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But lay up for yourselves treasures in heaven, where neither moth nor rust destroy and where thieves do not break in and steal – Matthew 6:19-20.
Used with permission. © 2009 Paul Proctor - All Rights Reserved
About the Author
Paul Proctor, a rural resident of the Volunteer state and seasoned veteran of the country music industry, retired from show business in the late 1990s to dedicate himself to addressing important social issues from a distinctly biblical perspective. As a freelance writer and regular columnist for NewsWithViews.com, he extols the wisdom and truths of scripture through commentary and insight on cultural trends and current events. His articles appear regularly on a variety of news and opinion sites across the internet and in print. E-Mail: watchman@usa.com
