In terms of human suffering, the answer is obvious... NOBODY!!! Needless to say, our hearts and prayers go out to everyone whose lives are torn asunder from these horrific catastrophes. This article is not intended to divert our attention from their needs. Instead, it looks at alternative ways to restore their lives and their communities economically.
Even before the torrential rains of Hurricane Harvey subsided, the SBA was sending out emails urging impacted home owners and businesses to apply for loans.
Each time a devastating storm reeks its havoc, the government wants to take a mortgage on land, homes or business assets which forces victims to pay them interest, or the government will guarantee bank loans so that banks can collect interest without exposure. Keep in mind that a loan is an asset to a lender and a depository account is a liability. This should answer any questions you might have about disaster recovery options. Just follow the money.
Think about it. Direct SBA disaster loans literally plug into the artery system of the community and drain off its blood for years, if not decades after a natural disaster.
AGAIN, LET’S FOLLOW THE MONEY. To fund a disaster loan, the government credits the recipient account which results in a digital entry that bears interest. In essence, every SBA loan become another form of government tax. As you will soon see, it’s an unnecessary tax.
The burden of interest gets attached to each disaster loan because in America, all money is borrowed into circulation. The federal government gave away its authority to create money with the passage of The Federal Reserve Act in 1913. As a result, the government borrows the money it needs to mitigate a natural disaster instead of printing it into existence which would be far more logical.
Today, a majority of Americans are buried under a mountain of needless debt because our government fell under the control of a central bank and this absurd system gets more absurd after every natural disaster.
When you spend a $100.00 "bill" you are spending bank credit that came into circulation when you, or someone else borrowed money. This system is doomed because everyone borrows the principal but no one borrows the interest when the loan is created. This creates a system of perpetual borrowing that eventually renders a debt based currency worthless, while concentrating the control of massive amounts of wealth in the hands of few powerful people and the government. Natural disasters accelerate and concentrate borrowing which only drags the economy further out of balance.
Take a look (below) at a traditional $100 dollar "bill". This familiar series was issued for many years in America. The green stamp and the words "Federal Reserve Note" confirm that it’s a bill we owe that originated as interest bearing debt that we pretend is money.
A far superior way to handle the funding of disaster recovery and currency issuance in general, is to print UNITED STATES NOTES into circulation through the Treasury Department and avoid the Federal Reserve System. Then, our government could simply grant interest free money to disaster victims who will immediately spend it into circulation locally WITHOUT INCREASING THE PUBLIC DEBT, thus improving the economy and the asset base of the stricken area rather than creating more perpetual interest and debt. This can be done without increasing the public debt by a single dollar.
Take a look at a $100.00 “United States Note”. US Notes carry a red stamp and the words “United States Note” above the words “THE UNITED STATES OF AMERICA”.
Just the mention of using America’s “people's currency” to help families and businesses after natural disasters sends shivers up the spines of central banks around the world.
Will the impact of the two worst natural disasters hitting America back to back be enough of a wake up call? Miracles happen.
The President should declare a national state of emergency and begin spending the "people’s currency" into circulation in disaster areas before Hurricane Irma stretches the current debt system further beyond it’s limits.
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