Financial Socialism

You've all heard by now that Henry Paulson is going to fix everything, by repeating the tried and true methods, and techniques, that got us into this mess in the first place. The plan is of course, to make the government the one stop source for easy credit. The government is going to loan money cheap to people who can't repay it.

After blowing a series of bubbles, the Fed and the banks have created another disaster in the making.

Not bailing out the banks will ruin our financial system.

But bailing out our financial system will destroy the dollar.

Henry Paulson intends to blow a new bubble. He said so. He told us previously that he is working to keep wages low, and spur the economy by increasing debt.

Without a rise in wages, people won't be able to repay the new loans that will be dispensed in the next bubble, funded by taxpayers.

And the next bubble has to be bigger than the last, or there won't be a temporary recovery.

Our debt is at $54 trillion. It is growing at 7.25% This means that it doubles faster than every ten years, if we do nothing but maintain it.

Now that means that the interest on the debt also doubles in less than ten years.

To keep up, wages must double in less than ten years, so that tax revenue can double in less than ten years.

If this doesn't happen, then the dollar devalues by half every ten years if nothing else changes. But with us on the Peak Oil Plateau, the dollar will devalue much faster, as the price of oil goes up due to demand and a flood of infinite dollars.

Now the US Government is going to grow the debt significantly faster. the US Government is going to finance the biggest bubble yet, on low interest loans, backed by the US taxpayer.

We may well see the dollar lose half of it's value every three years.

This will kill jobs. It will kill wages. It will drive the price of real estate back into the stratosphere, and bring it crashing down again.

And don't get fooled into thinking this is to save the homeowners. The Chinese and Arabs bought these mortgage packages. Now they are now holding on to worthless paper. The US Government will buy these back at face value, thus making sure that they don't lose any money in the deal. The US taxpayer will eat the losses.

When this is done, no bank will be able to compete with the US Gov on mortgages. They'll still offer them, but they'll be reselling government loans.

The Finance Industry will no longer be a Capitalistic Entity but a fully Socialist one. The government will have complete control over who can borrow, and for what they can borrow.

The Government is going to strike a blow deep into the heart of our economy with this move. It will kill jobs. It will drive wages lower. It will create a system whereby people must borrow to live. And the government will decide what you are worth.

The Hillbilly Reports