Monday, February 23, 2009

John Adams on the present crisis

“All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.” - John Adams

Do you understand how this works, Mr. Obama, when you write a sub-prime mortgage with China on our children's future? We no longer owe our debt just to ourselves, we also owe it to the whole world—much of it (approx. 8%) to China.

Beijing could easily trigger a dollar crash of massive proportions. China is estimated to hold over $700 billion in U.S. Federal dollar assets (not to mention what they hold from private debts). In comparison, the total number of dollars in circulation (as measured by M1) is $1.3 trillion. If China were to start dumping its dollars, U.S. interest rates would spike, inflation would soar, the housing market would get pummeled, and the economy would likely plunge into a serious recession.

Why continue the previous administration's disastrous policy?

America’s situation could have easily been avoided by living within its means and following simple, commonsense practices like avoiding debt to foreign powers, which obviously have their own best interests at heart.

God warned the ancient nation of Israel about the folly of foreign debt, and what the eventual outcome would be. Read it for yourself in Deuteronomy 15. God specifically told the people of Israel that if they wanted to prosper, they could lend to other nations but not borrow from them (verse 6).

As wise King Solomon noted, “The rich rule over the poor, but the borrower is slave to the lender” (Proverbs 22:7).

Our first black president is well on his way to reinstituting slavery in this country - though of a sort that is quickly recognized as such.

America being held economically hostage by a country that is still largely Third World shows just how precarious the U.S.’s economic position is...and how tendentious our liberties will be in the coming decades unless we return to principles of true conservatism (not the stuff that Bush II tried to soft-sell).

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