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There are two common approaches to economic theory: Keynesian and Austrian. What we are experiencing in our current economic crisis is the failure of the Keynesian approach. The foundation of our economy did not start out using the Keynesian model but was more structured after the Austrian approach. Any debt our country incurred (especially the early to mid 1900’s) was primarily used to become more productive as in building factories which made us a goods producing nation. We made most of the world’s goods and exported vast quantities to other countries and quickly became the world’s largest creditor nation. ¬†Unfortunately, we are only an empty shell of what we used to be. We have chased countless businesses out of the country due to excessive regulation and taxation. The past several decades we have gone into debt to keep Wall Street afloat and to blow various economic bubbles in an attempt to keep a failing economy from imploding. Some of these bubbles included the “Dot.com”, “Real estate/ sub-prime”, and finally, the worst bubble of all, the “bail-out/stimulus/quantitative easing” bubble. This bubble is destroying our currency.

In Larry Burkett’s book, “The Coming Economic Earthquake” written in the early to mid 90’s, he expressed a major concern that I believe is unfolding right now. He describes “monetizing the national debt” which has been given the clever name “QE1” and “QE2” I obtained permission by the publisher to post the following excerpt from the book. Click the presentation below to read his prophetic words….

>> Pages 154-161 from “The Coming Economic Earthquake”