In quite times of somber remembrance of a not so distant past a kaleidoscope of memories cascades ever so slowly through my conscious thoughts. It seems that in each decade of my life I am constantly jolted back to a reality of purpose through events I really had no control over. My father went through periods reminiscent to my own realm of reality today. When the crash of 1929 hit and ignited the Great Depression a very striking set of circumstances which led to the crash contributed to the financial meltdown that reoccurred in 2008, some 80 years latter. What followed after the first crash of `29 was a decade of economic and financial hardship unparallel in our nations history. After a decade of woe and misery for millions of Americans what followed was World War II. Which today bare a very striking and uncanny resemblance to the set of circumstances that have unfolded yet again. The only difference is that back then when the financial catastrophe hit followed by a decade long depression, which by the way, had a very real influence in igniting the greatest global conflict in the history of the world. Now, in 2001 after a blatant deliberate attack on the United States similar yet different to the attack on Pearl Harbor in 1941 set in motion our armed forces to be sent again, in harms way. This time to combat forces and insurgents bent on carrying our their most violent atrocities against America. A most arduous task. So began the War On Terror.
So often in history sets of circumstances which lead to events that unfold repeat themselves only with different variations. Like the realm of influence that preceded the stock market crash of 1929 again raised their ugly head again, in leading up to the financial mortgage crisis in 2008. Similar yet different both with devastating results for millions of Americans. We have to remember today that the monetary system in the world is based on faith, honor, and trust. Monies are no longer backed up by tangible assets. Remember when the gold standard was replaced? Well! now the currencies all over the world involve trust that national governments will act responsible and actually pay their debts.
The United States largest banks, financial institutions, and wall street are still facing an acute crises that started back in 1999. The world’s central banks did put nearly 1/2 trillion dollars into the US economic system in trying to stabilize it, but irrevocable damage had already been done. This past debacle on raising the debt ceiling contributed to the plain and simple fact that the United States not only financially is in very deep water but our own elected officials continually miss the boat in finding ways to keep this country not only afloat but high and dry.
America’s economic system was once the envy of the world, but now we are perceived with contempt and suspension. This continuing sub-prime mortgage crises is only the tip of the iceberg in the US economy. Trust in America is quickly disappearing. Why? Because we single handily brought the international financial system to almost insolvency by passing off fraud- ridden sub-prime debt on unsuspecting economies. This is what transpired in 2008.
Any time a possible recession looms interest rates are slashed. This is what happened in 2000 and again in the beginning of 2007. Consequently mortgage rates fell and more people were able to get loans. This resulted in higher home prices and the whole system fed upon itself. But as home prices rose banks needed to develop more ways of recruiting more home buyers. That brought the easy sub-prime mortgage scheme. This whole system was based on low interest rates. What happens when interest rates rose? Well banks knew the risk in holding all of the overvalued sup-prime mortgages so they looked to foreign financial institutions to sell their mortgages by marketing them as a safe investment. American banks convinced { Here is why trust is vital in the financial world} investment rating agencies like Mood’s and Standard & Poor’s to give the mortgage securities higher valuations than regular sub-prime rates would normally receive. { This is fraud brought on by the US banking industry. } The whole world now realized that the United States thirst for quick and easy profit created a world wide economic disaster.
Now the problem is how to restore our credibility and regain the trust of the international community. One of the answers is to create an international regulatory system that monitors and challenges any national regulatory agency. This can be easily accomplished thru the World Bank and the United Nations. The other step is for the US Congress to pass National Economic Reform. In that way the rest of the world will witness what an united America can do to restore and regain economic security and bring about national security as well.
So far the only discussion on preventing another financial catastrophe like this mortgage crisis of 2008 is the creation of an international regulatory system. What is important to remember is that in both instances attitudes that prevailed in the 1920’s and from 1999 thru 2008 did indeed spark a feeding frenzy of greedy passions of man. Now all that is left is a nation of poverty not seen since the 1930’s. The Republican response has always been most “Scrooge” like in their rhetoric and what ever legislation that has and is coming out of their dominance in legislatures in practically every state house and at our nations capital. The Presidents recent Jobs Act is a step in the right direction but is continually assaulted by the Republicans who can’t yet figure out just how to get things right. When this nation has the highest poverty rate in our history, unemployment rates skyrocketing, where veteran teachers with higher degrees being forced to choose poverty here in the United States or being employed in foreign countries are all part of the equation that the United States is being led down a most destructive path. This question comes a most inopportune time” If the United States is so wealthy as a nation why is it that so many millions can’t afford to live here anymore?
The time for direct action is at hand. No longer can the Republicans keep keeping the majority of Americans from fulfilling any semblance of the American Dream and no longer can the American populace become enamored and beguiled by the politics of today especially by the leaders of the Republican party. To fulfill the promise of a better future we all have to fully understand what has caused history to repeat itself in causing so much misery in each period whether it was in the 1930’s or today. Failure to grasp the realities that have undermined the hopes and dreams of so many Americans is an open invitation for history to repeat itself, yet again.
It is very strikingly familiar the way events that my father went through to the realities that parallel the events of this past decade only in reverse. From December 7th 1941 and September 11th 2001 both ignited a global assault against tyranny and terror. What came before December 7th and what came after September 11th brought about events almost parallel in degree of financial devastation rendering the United States almost completely helpless in coping with either catastrophe. Had it not been for the resolve of FDR and subsequent legislation the United States today would be most paralyzed in coping with the disaster at hand. Similar yet different in circumstances leading up to both crisis only in the 1930’s had their been a more unified response in providing much needed reforms to thrust the United States out of the depression. Our only hope today is that leaders combine their efforts in reforming the policies, laws, and mandates that contributed to this periods Depression. To falicitate economic recovery and to put an end to the War On Terror “National Economic Reform” must be implemented. The United States can not and must not allow history to repeat itself, yet again.