If you watch the news on television yesterday chances are you already know that we are in a serious financial situation right now. The Philippine Stock Exchange is down for 3 days in a row because of the U.S. debt downgrade. As the U.S. dollar’s value sink so will it have a huge impact in the global economy and today China, the fastest growing economy wants to replace the dollar as the universal currency. For us to understand why we are experiencing this financial crisis we should look back at history to know how it started.
According to Robert Kiyosaki, the author of the best selling personal finance book of all time Rich Dad Poor Dad, the “Ultra Rich” people are actually the ones who own the biggest banks in the world and these people are the ones responsible for creating the Federal Reserve. The Federal Reserve is a facility that lends trillions of dollars, yens, pesos, euros and other foreign currencies and it has been a great tool to manipulate the government and put their sneaky little hands in our pockets. This facility is not actually Federal nor does it have any reserve money in fact it’s not even a bank. The Federal Reserve is a big facility licensed to print money at will. Throughout the ages it had been printing tons and tons of money.
Now you may ask how printing trillions of money became one of the sources of the financial crisis, right? Again, looking back at our history we find that in 1971 President Nixon severed the ties between gold and the dollar without the approval of the senate congress. The dollar was very valuable because it is backed up by gold during those days and when the ties were severed the value of dollar decreased. The Federal Reserve now has power to print money at will. Governments can borrow trillions of dollars and as that happens debt increases and the big banks became the medium for the government to pay the Federal Reserve. Like I said earlier the owners of the Fed are the owners of the biggest banks in the world which means the government has to pay a huge amount of interest from their debt.
As the credit piles up so does the interest. Governments pay the country’s debt through taxes and the more we borrow the higher the taxes. Our government officials knows only how to spent money and its easier for them to spend it because quite frankly, it’s not theirs. The government has been a great smokescreen for the ultra rich to legally steal from the people. As they become richer the poor class becomes poorer and the middle class become fewer. As long as the Fed keeps pumping money out of thin air, debt will be accessible and increase in time and as that happens taxes go up, prices go up, investors lose and sooner or later our retirement funds will not be able to cover us.