Our Threatened Freedom

Are We In A Banking Crisis? (03:27)

R.J. Rushdoony

Transcript:

R.J. Rushdoony: 00:01 Are we in a banking crisis? This is R.J. Rushdoony with a report on our threatened freedom. Recently, Congressman Rand Paul of Texas reported on the international banking crisis. He called attention to the fact that the world debt is expanding steadily and rapidly. Third world and communist states owe Western nations and banks nearly $1 trillion.

R.J. Rushdoony: 00:28 According to Congressman Paul, and I quote, “This debt must be liquidated, and this can only be done in two ways: by countries defaulting or by the debt being paid off with inflated dollars. The former approach requires the bankers to suffer the consequences of their actions. The latter method forces the American people to bear the cost for bailing out the banks and debtor countries. It would involve a massive intervention by the Federal Reserve and the destruction of our money through the continued depreciation of the U.S. dollar. The mechanism is already in place for a further expansion of money and credit in order to sustain the system for a while longer. This means that long term inflation will persist and get much worse.”

R.J. Rushdoony: 01:25 This is not all. Other debts bring the worldwide debt total to an estimate of over $10 trillion, and the annual interest on that debt comes to over $1 trillion at the rate of an average 10% interest. This means that the world economy as well as the world tax structures have a major problem simply meeting interest payments apart from any payment on principal. More and more nations are increasingly unable to pay their debts. If you have a savings account, the money loaned out to debt-deep nations may be your money and their failure to pay could endanger your bank and your deposits.

R.J. Rushdoony: 02:14 The evidence is clear that we do have a world banking crisis. Behind that crisis stands the ugly fact of debt. Since World War II, men and nations have gone into long term and heavy debt as though tomorrow would never come. Now as the economy falters, the burden of debt grows heavier and more pressing. The economic and banking crisis will not be solved by economic measures alone. We definitely do need a return to the gold standard and to sound banking practices. Both however presuppose a mentality opposed to long term and ready debt. A debt ridden people are not a self reliant and free people. Debt is a form of slavery and worst of all, of self imposed slavery. Are we ready to be a free and responsible people? Being debt free is an important aspect of freedom.

R.J. Rushdoony: 03:22 This has been R.J. Rushdoony with a report on our threatened freedom.