Wake Up! Wake Up!
So many Americans are struggling to survive in the current money system. What most don’t realize is that it is not their own personal finances that need changing, but the economic system itself. In Running on Empty, Peter Peterson, former Secretary of Commerce and Chair of the Federal Reserve Bank, wrote that “America may well be headed for a financial meltdown. In Jan. 2004 … the IMF took direct aim at the U.S., warning the world that we are careening toward insolvency. They point to a huge and growing imbalance between what the federal government has promised to pay in future benefits and what it can reasonably expect to collect in future taxes. Its long-term deficit now exceeds 500% of GNP. Closing that gap, the IMF calculated, ‘would require an immediate and permanent 60% hike in the federal income tax or a 50% cut in Social Security and Medicare benefits.’” In his assessment, Paul Volcker, former chair of the Federal Reserve, warned that the U.S. faces a 75% chance of a crisis by 2009. Continue reading