Surprise, Surprise, Surprise!

What a clear picture that is emerging. Falling crude oil prices are resulting in deflation. What does that mean to the average American? Your dollar goes farther! I’ve been saying for months that crude prices were directly related to the demise of a boisterous economy.

Now this is just speculation mind you, but I bet it’s breaking news before long. And it’s really quite simple. The banks over the last couple of years were heavily vested in energy stocks and speculated in energy exploration. In order to justify the huge investments made in exploration, more money was invested in oil futures. Every investment house in the nation was encouraging the purchase of some investment in energy, whether it were Exxon/Mobil or crude futures or funds with heavy ties to energy. Banks also speculated more in questionable mortgages. They had to spend their profits somewhere.

What the banks hadn’t anticipated was that the price per gallon at the pump would affect consumers the way that it did, nor did they imagine that companies would be affected in the production of goods, or the transportation of goods. Consumers were hit hard, not only by increased fuel prices, but increased prices on everything. In just the last 2 ½ years, a gallon of milk increased an average of 50%. Air Travel increased from 20% to 50%. Everything increased in price. So the cost of energy caused this massive inflation. Consumers who were allowed to buy in on seemingly easily obtained discounted mortgages, got hammered with substantially higher costs on everything. Interest rates increased so did adjustable rate mortgages. With the higher cost of virtually everything, then the dramatic decrease in demand, due to high prices, layoffs began to occur. Doom and Gloom were in the headlines. Spend, Borrow and Spend days were over. Banks raised consumer interest rates, in some cases beyond the allowed usury laws of many states. Defaults on mortgages were just around the corner. The very thing that banks penalize consumers for was common practice in the banking and investment industries. It’s okay for them as long as we pay the bill. Supposedly energy demand is down, this is somewhat of a fallacy. While consumer demand for fuel for personal transportation is down. The percentage is miniscule. Over all

Now the leverage game of the banks is over. Fractional reserve banking (easy money for banks) is over for the present. They can’t borrow it if they don’t have it. Banks need money to survive and they want us to foot the bill. Well the American people need money to survive and we are damn tired of footing the bill. Let these bastards fail. If were any average American, that American would be forced into bankruptcy and would have to start all over.

The U.S. Economy will recover on its own. As prices fall, demand for goods will increase. The dollar will be worth more, not only for our own goods, but abroad. Companies will re-tool, hire new employees further stimulating the economy. Homes will be bought and sold. Interest rates will rise to a fair level, the banks that were smart and survived will prosper, money will be lent. The economy will rebound more sound that it was or ever has been in recent memory.

My friend and professional journalist Imran Anwar has a sound quick start solution. You should check it out at:



Bottom line, the American people are the ones in need of the bailout. We need protection from the glutonous banks that have preyed upon the American people with deceptive practices. We need protection from our own government who has no problem mortgaging our futures to bailout their major campaign contributors. Obama has his work cut out for him. Hopefully, he will listen to mainstream America and will make a change.

Kevin Glenn