Can you feel it? The feeling of Fear is sweeping across the Country.
Anxiety has consumed millions of people in America. Everyone appears to be pinching pennies and getting rid of the habits of reckless spending.
It has become extremely difficult to get a loan from the bank, even with A Credit. The bankers are getting prepared for a massive economic downturn.
Those who are considered sophisticated investors are pulling their money out of hedge funds; they are dumping their mutual funds and moving their money to safety.
It is very interesting to see the established media beginning to shout loudly about the dangers that are lurking.
CNN Money, the New York Times, the Wall Street Journal, USA Today, and hundreds of other newspapers and media around the world are all asking: Are we sinking into a depression? How bad will it be?
And without any deviation they all look to Washington for the answer.
That’s why General Motors is going to Washington in an attempt to get money to stay in business.
That’s why you are starting to see dozens of major cities and states requesting money from the government too.
It seems like everyone in going to Washington to get the next federal bailout.
Here’s a hard truth to swallow:
Washington can’t save the world. As much as we want to give Washington the power of God, it is not God. Sorry about that.
I know that me be hard believe but lets just look at Washington’s own words:
Based on the report from Federal Reserve’s Flow of Funds, there are $52 trillion in interest-bearing debts in the U.S.
The U.S. Government Accountability Office and other governmental sources gives an estimate of nearly $60 trillion in debts and obligation for Social Security, Medicare and other pensions are just now starting to get in gear.
That’s $112 TRILLION in debts and obligations.
This is why when I hear all of the pundits saying, “If Washington can avoid the mistakes it made in the 1930s … and nip this crisis in the bud … Great Depression II will never happen.”
They don’t even want to factor in the fact that just the humungous debt in America is far greater than it was at the beginning of the Great Depression.
And I haven’t even mentioned the gigantic derivatives market that exceeds $500 Trillion, which is at the core of losses we see the banks being hit with.
My point here is that the Debt Crisis, which they say is the cause of the economy’s decline, is just too big for Washington to control.
The real big question is WHO is going to finance of this?
It is clear with all that has already happened in the economy that Washington cannot — and will not — fund the bailouts with higher taxes.
And it is equally as clear that the government will not be making major cuts in government expenditures.
Washington will do what they always have done; they will try to finance this folly by borrowing the money.
Just last week, the U.S. Treasury department announced that it is borrowing $550 billion dollars in the fourth quarter that is more than the entire deficit of fiscal year 2008.
And look at this, one of the banks that they are giving Billions to, Goldman Sachs, also stated last week that the upcoming borrowing needs of the U.S. Treasury will be a shocking $2 trillion — to finance the bailouts, to finance the existing deficit and to refund debts coming due. That’s four times the size of the entire deficit.
This will only make the crisis worse.
Let’s wrap this up. The bottom line is it’s ridiculous to believe that Washington can save every failing individual, company, country and government on this planet.
It’s naive of us to believe that manipulating the currency, writing new laws, changing the banking structure will be able to stop the force of billions of people who purchase goods and services from pulling back.
Nor can Washington stop millions of investors who are desperate to sell from selling.
Washington cannot repel the Law of Gravity nor can it win the battle with the Law of Economics.
So act promptly to preserve your wealth and savings.
Bro. Bedford
http://www.howtobeablackentrepreneur.com
Posted By: Bro Bedford
Monday, November 17th 2008 at 5:00PM
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