The first TV ads have been launched by the Obama campaign to generate support for the 2012 election. It is estimated that the cost of his re-election bid could be somewhere between $750 million and $1 billion dollars. That is a lot of money. Especially for a country that is in such a stressful economic situation. I’m sure the right-wing talk shows will be all over how Obama is using the much needed dollars of the American tax payer to support his TV ads and bus tours. I am also sure that they will not dare mention the budget of the military or get down to the real reason why this country is in such a financial crisis in the first place, the monetary policies of the Fed.
You see, all this talk of the debt ceiling has conjured up patchwork solutions that deal with fiscal policy, how much our government taxes and spends. Our government spends more money than it brings in. In order to fix this problem you need to bring in more money by raising taxes, or spend less money by cutting programs like social security. The reason our country is in debt is not because of fiscal policy, but because of monetary policy, which deals with borrowing and lending. The U.S. government borrows money from a private bank called the Fed. Our government is then expected to pay back the money it borrowed, plus additional money due to the interest that is part of every loan from the Fed. The problem is that the government doesn’t have the money to pay back the loan, so they have to borrow more money. The Fed then prints more money for the government to borrow, and the cycle continues. The ability to print money and control interests rates usurps the power of any democratically elected government. No matter how well the three branches of government check and balance each other, all three have failed to check and balance the fourth branch, the Fed, because technically it is not even part of our government.
My hope is this: The outrageous amounts of money that are planned on being spent in the 2012 election will reaffirm what people already know, we don’t live in a truly democratic society. How can every child dream of being president if they need a billion dollars to compete with other nominees? Combined with a revitalized OWS movement, serious discussions about monetary policies will lead to radical reforms of the financial institutions that have exploited the citizens of this country since 1913.
P.S.-I am not a Ron Paul supporter….but he does have some interesting things to say on the subject. Check out this video.