Monday, September 08, 2008

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


At 8:33 AM, Blogger an average patriot said...

Man I think I'm hyperventilating! I was thinking about you and me and all this earlier when I was putting mine together on checkmate America.
It really sucks to watch and know what is happening and how bad this is going to be and not only are we powerless but most call us conspiracy theorists while the real conspiracy of destroying our America and this so called new order just continue!
You know, I have said it so many times that we are being purposely bankrupt because a new monetary system is coming in with the NAU or that is the plan. This is new developing too rapidly to track and will be coming to a head soon.
Wease by the way, that was very good. Why can't people see it? I feel so bad telling my wife the truth as she is dealing with a couple dying parents and wants to think everything is great and I am some kind of an idiot. AAARRRGGGHHH!!!

At 10:19 AM, Blogger Brother Tim said...

This is the inevidable result of fiat currency. The house of cards is coming down. The new currency will not remedy the situation, Jim, as that will be fiat also. We will soon get back to commodity based currency------we have to. Do you realize that a silver dime that could buy a loaf of bread 50 years ago, can still, by it's precious metal content (worth about a dollar) buy a loaf of bread today.

At 11:14 AM, Blogger Hillbilly said...

Hey weaseldog, thanks for embedding my video.
This banking bunch makes me sick to my stomach.

At 4:06 PM, Blogger Edgar Alpo said...

nice that foreigners own the usa gubmint to such an extent that they get increased yields risk free while the taxpayer picks up the bill for the entire financial system losses. Socialism for the uber-wealthy, crony capitalism for the gubmint, ruthless fascism for the rest of us.

At 11:20 AM, Blogger an average patriot said...

Did you see that Bush blames Congress for this mess too? WTF?

At 1:22 AM, Anonymous Mike G said...

This is the largest government intervention into the "free market" in at least fifty plus years but good luck hearing a peep out of the free market fantasizers on the right because there isn't a Right versus Left narrative to regurgitate. You see, the formula is usually free markets for thee but not for me.

At 3:44 AM, Blogger Mike said...

Theft. Nothing but straight out, shamelessly transparent theft.

Another chapter in the late 20th/early 21st century story of the greatest forced transfer of wealth in world history.

At 9:24 AM, Blogger Weaseldog said...

Welcome back Mike. :)


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