Our Threatened Freedom

Are We In a Banking Crisis

Professor: Dr. R.J. Rushdoony

Subject: Political Studies

Lesson: 162-169

Genre: Conversation

Track: 162

Dictation Name: Vol. M - Part 06 - Are We In a Banking Crisis

Location/Venue: Unknown

Year: 1980’s – 1990’s

[Dr. Rushdoony] Are we in a banking crisis? This is R.J. Rushdoony with a report on our threatened freedom.

Recently, Congressman Ron 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 one trillion dollars. According to Congressman Paul, and I quote, “This debt must be liquidated, and this can be done in only 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 in debtor countries. It would involve a massive intervention by the Federal Reserve and the destruction of our money through the continued depreciation of the US 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.” Unquote.

But this is not all. Other debts bring the worldwide debt total to an estimate of over ten trillion dollars, and the annual interest on that debt comes to over one trillion dollars at the rate of an average 10% interest. This means that the world economy, as well as the world tax structures, has a major problem simply meeting interest payments, apart from any payment on principle. More and more nations are increasingly unable to pay their debts. If you have savings account, the money loaned out to deadbeat nations may be your money, and their failure to pay could endanger your bank and your deposits. The evidence is clear that we do have a world banking crisis. Behind that crisis stands the ugly fact of debt. Since World War 2, 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 oppressive. 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, a self-imposed slavery. Are we ready to be a free and responsible people? Being debt-free is an important aspect of freedom.

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