Home Economics – From My Perspective

Setting the Stage

From the time of our revolutionary war against England, through two world wars and numerous “police actions” we have successfully grown our economy and paid our debts. Then came recession in 2008.

Some believe without TARP and “bail outs” the economy would have shaken out and restarted an upward trend. But, over the last three and a half years, under Democrat control of the White House and Senate, the United States of America accrued more debt than the sum of all debt under all previous presidents from George Washington to George Bush (44). Our national debt is of such astronomical magnitude that, apart from a miracle, we probably can never pay it off.

Clearly, our ship of state plies uncharted waters. Signs on the horizon suggest stormy waters ahead. The European Union appears to be collapsing and China’s economy has come to a standstill, appearing to be in a state of collapse as well.

As Kenneth Schortgen writes in The Daily Economist, five years into the home foreclosure crisis, the first wave of home foreclosures, we learn that 2,300,000 children lost their homes. In the next, he says, 3,000,000 will likewise lose theirs.

In an interview by Business Insider, Peter Schiff, author of Crash Proof, tells Henry Blodget “the real crash is yet to come”. Listen to the entire interview via link below.

Click on image above to view Business Insider interview with Peter Schiff

False Bottom from Foggy Bottom

Why hasn’t the crash already come down on us? What’s holding it back?

So much of our national economy rests on the housing industry, whether construction, renovation or rentals. Whatever the type of residential property, little of it is owned outright; mortgaged properties are the rule, not the exception.

An article today from DSNews.com reports one third of all homeowners are “under water”, indicating these 15,700,000 homes were purchased above real market value. How can this happen? Answer: GSE – Government Sponsored Enterprise bonds. FHA, Fannie Mae, Freddie Mac, VA, HUD – all these entities create an unnatural, a synthetic “floor” under the housing industry, by guaranteeing home loans to unqualified buyers.

Presumably, the Obama administration thinks it can prevent a collossal recession by propping up the market by reducing principle (our money), guaranteeing loans to unqualified buyers (our money), stimulating phony “green” industries (remember Solyndra?).

“Iron Lady” Margaret Thatcher once said, “…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.” We indeed have a financial mess on our hands and the federal government is broke.

What To Do?

First of all, don’t panic. Second, educate yourself. Keep in mind we created more

Chinese Symbol for Crisis
Danger + Opportunity

millionaires during the Great Depression than at any other time in our history.

Mentally and emotionally prepare yourself for change. Now that the European Union is collapsing, America is again the largest economy in the world. Opportunity abounds among 313,000,000 people.

Most important of all, learn what it was that made this the greatest nation in the history of the earth. This nation was founded on Biblical principles by people who ardently studied the Bible and were keenly aware of their history under a monarchy.

At the Constitutional Convention of 1787, elected representatives labored weeks to improve a weak confederacy of states. Following five fruitless weeks, 81 year old Benjamin Franklin reminded those men of our genesis and how God had miraculously delivered us from the mightiest nation the world had ever known.

“…To that kind providence we owe this happy opportunity of consulting in peace on the means of establishing our future national felicity. And have we now forgotten that powerful friend? or do we imagine that we no longer need his assistance? I have lived, Sir, a long time, and the longer I live, the more convincing proofs I see of this truth- that God Governs in the affairs of men. And if a sparrow cannot fall to the ground without his notice, is it probable that an empire can rise without his aid?”

Subsequent to his oratory, the Continental Congress turned to the Creator for wisdom and out of that spiritual revival came forth our present-day federation of states, our Constitution.

Resources:

Miracles don’t happen when you need them; they happen when you expect them.

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