Unemployment is low, inflation is low, wages are rising, this economy is on the move!

“Unemployment is low, inflation is low, wages are rising, this economy is on the move! (crowd cheers)” – President Bush on the State of the Economy 2007

The more I learn about Fractional Reserve Banking, Federal Reserve policies, inflation, and economics in general, the more I see how easy the present banking collapse was to predict. I have found a number of blogs that were sounding the alarm more than a year ago. Read the words above and ask yourself if the man that said them actually believed what he was saying? I can’t believe he did. The BBC put together two short 20 minute programs on the current banking collapse which is both informative and interesting to listen to. If you want a good overview of some of the issues this is a good place to start.

BBC Debt Threat: Credit Monster Part 1, Any Escape Part 2

Here are some questions to think about as talk of recession looms.

  • Why do economic stimulus packages always require the govt. to spend more money? Where does the money come from? Aren’t we are already spending money we don’t have (budget deficit)? How is spending money we don’t have good? If it is good why not double or triple the current spending proposals, won’t that be better?
  • Why is the president visiting Saudi Arabia?
  • Why does Wall Street always want the interest rate lower? If this is so good for the economy why not drop it to zero?
  • Name the last Republican president that had a balanced budget or shrank the size of govt.
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