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View Full Version : BJ Lawson dissecting BO address




DirtMcGirt
02-27-2009, 11:11 PM
http://www.unitedliberty.org/articles/recovery-through-debt-slavery



Obama’s address Tuesday evening contained a fascinating lesson in economics and monetary policy for the American public. Let’s review:

" So the recovery plan we passed is the first step in getting our economy back on track. But it is just the first step. Because even if we manage this plan flawlessly, there will be no real recovery unless we clean up the credit crisis that has severely weakened our financial system.

I want to speak plainly and candidly about this issue tonight, because every American should know that it directly affects you and your family’s well-being. You should also know that the money you’ve deposited in banks across the country is safe; your insurance is secure; and you can rely on the continued operation of our financial system. That is not the source of concern.

The concern is that if we do not re-start lending in this country, our recovery will be choked off before it even begins.

You see, the flow of credit is the lifeblood of our economy. The ability to get a loan is how you finance the purchase of everything from a home to a car to a college education; how stores stock their shelves, farms buy equipment, and businesses make payroll.

But credit has stopped flowing the way it should. Too many bad loans from the housing crisis have made their way onto the books of too many banks. With so much debt and so little confidence, these banks are now fearful of lending out any more money to households, to businesses, or to each other. When there is no lending, families can’t afford to buy homes or cars. So businesses are forced to make layoffs. Our economy suffers even more, and credit dries up even further.

That is why this administration is moving swiftly and aggressively to break this destructive cycle, restore confidence, and re-start lending."

I’ve highlighted several words above: credit, debt, loan, and lending. Note how words credit and lending are used with positive connotations… and how the word debt is only used once, with a negative connotation.

Here’s the irony — the words are synonymous, they’re just on opposite sides of the same transaction. For every lender there is a borrower, and an extension of credit requires that someone go into debt — thus committing to pay back the borrowed money, with interest.

As explained in this article from last July, our money is debt. Does it make sense that our “economic growth” requires our taking on new debt at an accelerating rate to prevent defaults from exponentially-growing compound interest?

If the above paragraph doesn’t resonate, please view Chris Martenson’s excellent Crash Course. The root of our problem isn’t partisan politics — it’s high school math that is lost on our economists and central bankers.

In other words, Obama’s speech is written from the perspective of the banks, not the people. Let’s rewrite Obama’s speech from the people’s perspective, who also lack confidence:

So the recovery plan we passed is the first step in getting our economy back on track. But it is just the first step. Because even if we manage this plan flawlessly, there will be no real recovery unless we clean up the debt crisis that has severely weakened our financial system.

I want to speak plainly and candidly about this issue tonight, because every American should know that it directly affects you and your family’s well-being. You should also know that the money you’ve deposited in banks across the country is safe; your insurance is secure; and you can rely on the continued operation of our financial system. That is not the source of concern.

The concern is that if we do not re-start borrowing in this country, our recovery will be choked off before it even begins.

You see, new debt is the lifeblood of our economy. The ability and willingness to borrow is how you finance the purchase of everything from a home to a car to a college education; how stores stock their shelves, farms buy equipment, and businesses make payroll.

But people have stopped borrowing the way they should. The Federal Reserve’s easy credit resulted in people borrowing too much money to pay artificially high prices for housing, and now we’re losing over a half million jobs per month. With so much debt and so little confidence, people are now fearful of borrowing more money. When there is no borrowing, families can’t afford to buy homes or cars. So businesses are forced to make layoffs. Our economy suffers even more, and credit dries up even further.

That is why this administration is moving swiftly and aggressively to break this destructive cycle, restore confidence, and re-start borrowing.

Obama has mastered bank-centric newspeak. Isn’t it odd that the President of the United States cannot conceive of saving money to buy a home, car, or college education? Isn’t it strange that we’re dependent on the “lifeblood” of new debt to stock shelves, buy farm equipment, and make payroll?

Please, take a moment to educate a friend on the unsustainable nature of our debt-based money system. Economic recovery cannot be accomplished by tightening the chains of debt slavery.