As I flip through today’s propaganda I see a story that looms larger than the rest. The ‘non political’ Federal Reserve is once again chiming in on COVID aid. The head of the Chicago branch of the Fed went on the news to talk about COVID aid over the weekend. It was interesting that this story only quotes the man once talking about ‘public confidence’. Public confidence is the only thing that holds our currency together and has been since Nixon ‘opened China’. What a tricky Dick move that turned out to be.
You never can tell if the ‘news’ in America is telling the truth anymore. But the one quote was enough for them to go on before they start ‘newssplaining’ the man’s opinion. It appears he is concerned with state and local governments receiving aid to cover aid. They have been required to pick up the tab for part of the Federal aid and just like the federal government, local governments are bringing in fewer tax dollars than normal. This is reason the Federal Reserve needs to be involved in aid packages.
You see without the Federal Reserve, there would be less money in emergencies, not more. But the Fed is happy to jump in and buy assets as they crash time and time again. Especially since the Fed doesn’t have to have any real money to buy them with. Not a bad way to accumulate wealth while keeping the banking system afloat. State and local government budgets are of vital importance to the Fed and the financial system because the states and cities run on debt. If local governments run out of money, they begin defaulting on bonds.
In the world of finance, bonds are the center of attention. Bonds are the primary source of government’s excess funds. Bonds pay for the deficit spending that allows politicians to buy votes from people with their own money even when the government is broke. But the government does have to make the payments with tax dollars and in a major recession like this one, there is deep cut in tax dollars. The entire bond market is at risk and so the Federal reserve pushes the federal government to overspend with bonds of its own. All provided by the Fed itself.
The other major idea dropped in this story is the helicopter drop, though they don’t want to call it that. This is something that happens near the end stages of a currency. Before the almighty dollar is forced to bow the knee, the Fed wants to give out money to everyone. We are in a national liquidity crunch because regular people are struggling to pay their own debts.
The Fed is pushing for relief to make sure people have food and pay rent. This isn’t just to keep people from rioting in the streets. People are already rioting in the streets. This is to keep the banking system functioning. If people can’t pay bills and eat, they will eat. This will leave creditors out to dry and collapse the credit system. This happened in 2008 in the mortgage market as well as some markets most people never encounter. But now it’s coming in the student loans, the car loans, the mortgages, and every area of personal finance. If personal finances go then corporate finances go.
So what we are looking at, is the collapse of everything at once. We are looking at a 4 trillion dollar deficit this year and the plan is to dump trillions more in aid to grease the economic gears. Shutting down for COVID was a really bad plan for those who want to survive as a nation. States, cities, businesses, individuals, the federal government, banks and literally everyone is in a crunch all at once. The Fed has a checkbook which requires no money to buy things. They are buying up the bond markets and stock markets and putting cash in people’s pockets and they want to do more.
Is more a good plan? Well no but neither is having a Great Depression in the middle of a communist uprising, a pandemic and a Brazilian whalenado. No matter how well laid our plans are, the borrower is always slave to the lender. It’s in the Bible. We can pretend that all the tricky math and dozens of backup systems can swoop in and save the day but eventually you hit a wall. The world can’t afford its debt and the only solution anyone can come up with is more debt to get us out of debt. I guess the Joe Biden 2008 plan of borrowing our way out of debt was as smart as his current campaign.
As the Fed drops money into the system you may get some of it as we did a couple of months ago. This next aid plan that they are pushing for may be bigger and ongoing. If so, it is time to pay off everything. In fact, it is time to go the full Dave Ramsey right now even if you don’t get another helicopter drop of cash. God is about to bless His people financially. Not for the fun wealth, but to set us free from debt slavery. To free us for His plan and purpose for our lives. God is sending a great revival and it has already sprung up across the nation. As we see the financial system fail, we will receive His help and we will be the people who are enabled to help others. So get unshackled from the world of debt and build something in this season that will enable you to be a shelter in the storm for others as they run to the God for safety.
May you receive business ideas and follow through with building them! May you own the place where you live! May you not be fooled by the allure of wealth but walk in the glory of faith in Christ Jesus! I pray that you would receive full payoff for every debt that you owe and that you would use it as intended! I pray that you will build in this season and not fall back, build a life that reveals Jesus to the world! May you become the Righteousness of Christ and the Love of God in Christ Jesus our Lord! May you walk in the faith that provides for all needs and shines God’s love outward and may God bless all y’all.