Gary North has written an important and, frankly, frightening analysis and explanation of the current economic crisis, paying special attention to the banking crisis. The article appears on the Lew Rockwell website and is entitled Ben Bernanke’s Wild Ride (and Ours). North bases his article and his argument on a video presentation, which is in reality an ad on Youtube for an alternative view financial advice blog.
The video demonstrates the absolutely awesome (in the true sense of the word) growth in borrowing from the Federal Reserve during economic crises of the past and present. For those who prefer to belittle North for being a scaremonger on the Y2K “crisis” please note the Y2K precautionary borrowing in the year 2000 on the video. Gary North wasn’t the only one scared
There were many of us who had a hand in IT systems at the time who also thought that Y2K was potentially disastrous. Ask any IT/computer professional recruiting specialist, if you can find one that is, about what business was like during the 1998-2001 period and what it’s like now. Billions were spent to make sure that Y2K didn’t happen. The Y2K borrowing peak is to the current peak(s) as a pebble is to a mountain.
Here’s the video- brace yourselves.
The bottom line in North’s article is that he thinks (and he has a very sharp eye on economics) that we are in for an extremely long, deep and disastrous round of inflation; think in terms of Weimar Germany, Argentina and Zimbabwe. Yes, that bad. And not just here. Around the world.
Through a biblical economic lens, and yes the Bible teaches about economics at length, the world has adopted a system which it cannot sustain. Fractional reserve banking which creates money from nothing, fiat currencies backed by nothing but “consumer confidence (read FAITH, thus making the dollar into an idol)” easy credit and bailouts are harbingers of looming disaster, just as promised in the Old Testament.
How did the American economic system, not to mention the world’s get in this condition? The answer to that question is complex but decipherable. We will do our part to help explain it by reviewing some books you should think about reading. We will start by doing a series of reviews of Dr. Thomas DiLorenzo’s Hamilton’s Curse, which explains the fatal flaws of the central banking system and explains how deficit spending for “internal improvements” which some have labeled “Hamilton’s blessing” have helped lead to the present situation.