However my conclusions are different. Since 1982, over thirty years, the interest rates of long term debt have been decreasing. The primary source of these falling interest rates has been the open market operations of the Federal Reserve. The big banks and the big corporations share ownership to a very large degree. These big business interests wield extraordinary political influence. These four facts are the foundation of everything that is wrong with the economy.
When interest rates are falling the value of long term debt is rising. This means that the liabilities of small and medium size enterprises (SMEs) have been increasing year on year over this entire period. For the most part these companies do not use mark to market accounting. This means that they have been paying dividends on phantom profits and destroying their capital base. The end result is that they file for bankruptcy, the liquidators are called in and their assets are sold off to the big corporate competition.
During this same period the private equity firms have been enjoying unprecedented success in buying up SMEs loading them with debt and selling them on to one another until the music stops, the liquidators are called in and the SME assets are sold off to the big corporate competition. The end result of all this chicanery has been the consolidation of every industry into fewer and fewer hands on a global scale.
The Federal Reserve has said that it is fighting deflation when the opposite is true, it has been causing deflation in the SME sector with its falling interest rate policy. One may view this as unforeseen consequences or it may be intended for the purpose for which it has been used, industrial consolidation. In either case there is only one possible way to change the trajectory of the economy.
The present monetary scheme based on the Federal Reserve System must be ended and sound money introduced with competing currencies as put forward by Dr. Ron Paul. All special interest pleading must be ended and all regulatory privileges enshrined in Federal agencies must be abolished. Absent these two changes the current situation will continue and the result will be what the owners of the big banks and big corporations have been aiming at for the past one hundred years...total control of the global economy for their own benefit.
"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)
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