A Piece of Bread Could Buy a Bag of Gold

For several months now I have been contemplating the U.S. and world economies.  Being a historian, I am very much aware of the hard times that revolved around the Great Depression from 1929 until the start of World War II.  It appears that we are in similar circumstances today.  Many factories are moving to Mexico and other places for cheaper labor.  Large businesses are closing their doors and leaving employees jobless.  Many people are caught with high debt with no way to get out–except to file for bankruptcy (which hurts our society as a whole when someone files bankruptcy).  Homes are being foreclosed, and people don’t have gas money, etc.

When I took history and economics in high school and college, it was pounded into me that war is always good for the economy.  I always saw this as hogwash (and I still do).  We are currently in a war, albeit a small-scale war compared to World War I or World War II, and even Vietnam and some others.  For one thing now the U.S. has an all-volunteer army, so the military force is smaller.  In the past, we had the draft, and people were forced to comply with the draft, unless they were conscientious objectors.  So there were more people serving in the military.

But the reason I see a war NOT being good for the economy is because during World War II and other times there were tons of money going to help the war cause (money that could have been used here at home).  The money used in a war does not yield noticeable results in terms of long-term economy or buildings, etc.  It only goes to enforce law and order (and sanity) in parts of the world.  Wars can create jobs that were not there before, but even so, the money to pay the employees has to come from somewhere.  Does the government print more money to be able to pay laborers who help with building fighter aircraft (i.e. Rosie the Riveter, etc.)?  Anymore, since our money is not backed by the gold in Fort Knox, it seems that is what the U.S. government does.  That is not good.  It only balloons the Federal debt problem.  Whatever “fix” a war effort may bring to the economy can only be a temporary fix.  Not the real thing.

In Southwest Missouri, where I live, we have lower gas prices than many places (but our cost of living as a whole is also lower).  We have lots of residents who are considered in the poverty level.  Another factor in the gas prices is that I am thinking that Missouri has less taxes on gas than other states do.  The second week of January 2008 we had a bad ice storm that lasted a couple of days (the worst part of it).  My place of employment was closed for two days, and many schools (including Springfield Public Schools) were closed.

I was still able to get out in my car, and I remember that gas at that time was $2.69 a gallon.  But I had a strong feeling that the economy was on a bad swing that would yield high prices (gas, food, and other commodities) as well as downsizing and cuts in jobs in many places, etc.  Not too long after this, the U.S. government saw the handwriting on the wall as well, so President Bush signed a special stimulus package into law.  And beginning the end of April, many citizens received an extra stipend of money from the government to help “stimulate” the economy.  However, I think the economy is so bad, that the extra monies will not change things very much (but you can bet this will quickly increase the Federal debt which is out of control).  The higher gas prices are pushing ALL the prices higher, because so many of the goods in the U.S. are shipped across state lines via semi-trucks.  And they need lots of gas to transport the goods.  And along with the higher prices on gas and commodities, inflation, and unemployment are climbing.

Now, today, the gas prices in Springfield hit $3.69 a gallon (and gas is higher in other cities and especially other states).  It has only been 4 months since I observed gas at $2.69 a gallon.  It has gone up in price one whole dollar in just 4 months’ time.  That is a 27% increase in price in just 4 months.  What is this world coming to?  And I don’t see any end to this rise in gas (and other) prices.  In the past gas prices in the U.S. have see-sawed up and down, but now it seems they are just climbing a little bit every few days.  This is a very bad sign and inflation at its worst.

This reminds me of a song I learned back in the 1970s that was intended to wake people up to the rapture and the soon coming of Christ. The song is called “I Wish We’d All Been Ready!”

Here is the first verse:

Life was filled with guns and wars, everyone was trampled on the floor
I wish we’d all been ready
Children died the days grew cold, a piece of bread could buy a bag of gold
I wish we’d all been ready
There’s no time to change your mind, the Son has come and you’ve been left behind.

I firmly believe that the world is fast approaching the end of time as we know it. Terrible things are set to fall upon mankind (at the hands of evil men who want to control the world, etc.). Also, “natural” calamities such as tornadoes, earthquakes, tsunamis, hurricanes, volcanic eruptions, as well as droughts, floods, etc. are abounding. These are all signs of the end of time, when Jesus will come back to earth to judge people and take those who love and serve Him to heaven. Are you ready???

It won’t be long until a piece of bread really will cost the price of a bag of gold.

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