Downgrade More Expensive?

In the face of S&P’s downgrade, why do we care?

The political factions and media tell us, we’ll pay more on credit and debt. Will we based on the actual cost of money for the banks? Today, major banks pay little or nothing for money. The Federal Reserve has the rate at .25 %. Don’t we all wish we could get money at that rate. We could invest in T-Bills at 2+% and enjoy a nice return for nothing. That is if we had a few billion. Otherwise the 2% gets eaten up in the transaction costs we peons incur. But, the larger issues remains, why will we pay more if the banks do not pay more?

With the looming double dip recession, we know the Federal Reserve wants to print money. We also know the average person now understands the down side to inflation. Congress has no appetite for taking on the American public with elections looming, so quantitative easing will probably stay in the box. At least, the public version of Federal Reserve action will. Behind the scenes they can at least try to ease the pain of another recession. But, like their last two efforts,

“will it matter?”

The last efforts to change the course of history failed. Which brings me to the point of this article. If we are to see a new vision for America, we must be willing to see new options. Maybe, some of the options are not new, but, they have grown out of vogue, so to speak. Saving has found it’s way back into our vocabulary. Maybe, the gold standard has no place as the value has become so “out there.” Silver might be an option, or have you thought of copper? An old idea might be reborn based on price of the metal being affordable for the common man.

Metals in Our Future

A metals based currency would wreck our relationship with the Federal Reserve. Which might not be a bad thing. If we are moving forward, leaving outdated models behind makes sense, right? Reducing the size of central government might give us more freedom at the local level and as individuals to barter, and trade without federal intrusion. No, this is not an effort to go back to medieval times, but rather open the discussion to alternative thoughts.

A new American dream needs to begin with an open mind. We cannot drag along the status quo. Which might be frightening to some and exciting to others. Before you run off to start a commune in the Oregon mountains,

“that has been tried.”

No, we need to see possibilities of a society where localities decide what works for them. As the U.S. loses international power, we will face new challenges. Thinking inside the box offers us little beyond, more debt, more government and more decay. And, do not play to have Johnny or Sally become a high tech genius as the saving grace. International competition and pricing puts our tech industry on the verge of being less competitive.

I am not the voice of reason, truth, or the future. My goal- start the brain thinking about possibilities beyond now. We can revitalize the U.S., but not through government programs. We can see a new American Dream. And, that is the only option, because Opie and the Fonz are too old to take us forward.

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