People look at this topic in a linear manner when it is far more dynamic than anyone can imagine. For example, the concept of the Republic failing from internal political means speaks nothing to the trans nationalization which is taking place at an alarming rate. Furthermore it does not take into account that this system was designed to be used by people of good moral fiber and the words of our founding fathers stated this fact in many places. This is a far cry from the Carter years, today we have a communist as president. The ideology of the nation is changing within the school system from grade school to college levels in a way most do not understand.
Furthermore, and I believe the most immediate threat is the economy. Many people do not even understand what is taking place. There are so many angles alone within the moves being made economically that it is beyond the ability for any single person to fully comprehend. We see bond sales to foreign government being repurchased by our government just days later and banks preferring to lend to the federal government rather than small business, we have a major problem. Lets not forget that this housing crisis is not even over. As of Jan 2010 a new round of foreclosures will begin which Fannie and Freddie plan on backing and lets not forget that more than 90% of home loans now going through are purchased by Freddie and Fannie. Also when we take into account that when the government stepped into the economy we lost any fail safe that we had. With unfunded liabilities being the worst nightmare ever imagined, a currency crisis which we are quickly headed to will destroy us.
Once the government lent money to the banks they decided to hold this money on their books. While some have decided to "repay" this money, in truth its not repaid. Most banks have sold many of their holdings to the government to cover this debt so further intrusion by the government into the banking sector has taken place. When all of this money gains velocity from going from the banks books out into the public sector, the game is over. This must happen at some point, it simply does not disappear. The government is in a catch 22. Any attempt to recover this money would have to take place via raised interest rates. Yet if they raise rates they also will find this will accelerate the currency crisis for the government also owes so much money they would in the end be borrowing to repay interest alone. Yet without raising rates inflation will continue beyond control and international rates on lending to the USA would go up therefore forcing the national rates to increase.
There is no way out.
In my mind, its not a matter of if, but time. Some time lines I have heard quoted by economists given as to the beginning of the final collapse of our economy is two to five years. To any attempt made by the people to affect our future politically is in practical terms, futile. When the currency collapses we have two choices. Do as Germany did and use land as backing for a new currency and this alone opens a whole new can of worms especially since Fannie and Freddie own so much and confiscation of land becomes imminent. The other option is to defer our debt and nation to the UN forming the largest global alliance in world history, that is, if they will have us for they too will have their own problems to deal with.
From where I sit, based upon my understanding and education of the political climate and the economic climate, we are preparing for what could be the last days of our Republic. I never try to become one of the tin foil hat people, but when mathematics dictates that failure is imminent, how can one argue? If the problems were only political I would say our chance of survival is high. Yet when coupled with the economic issues that still have yet to be played out and those that have not even arrived yet, I see no hope whatsoever.
