HyperInflating Our Way To Prosperity
Gov't rushing to finish huge financial rescue plan
This is incredible! The Government is going to transfer all of the finance industries toxic junk which even includes AAA securities, to the taxpayer, using a massive injection of newly borrowed funds.
Officials are saying that this could cost a half a billion dollars. Yet, we've been hearing numbers in the finance sector that the real exposure is in the hundreds of trillions of dollars.
As this new money enters the markets, it will drive the price of everything up. This will slow the economy further, necessitating further bailouts.
We're swirling the bowl. Bernanke and Paulson are trying to grab the rim each time they go around. The water level is dropping. Each time around it's further and further out of reach.
They both say that putting 'We The Taxpayer' on the hook for these liabilities is the best thing for us. That this will give us a clean smooth running financial system that can start making loans again, to power the economy.
In other words, they're trying to push start an economy that's out of gas.
After this bailout, after the toxic loans have been removed from the banks and made the responsibility of the public, what will the banks have left? The destructive cycle that we are experiencing will repeat, because the root causes are being perpetuated. Worse, they are being escalated as an attempt to cure the economy.
The easy loans, the easy money, are causing the runaway inflation that is killing our economy. Now the government plans to dramatically increase the supply of easy money for the banks, so that they can generate more easy money.
How can this cycle not continue to repeat? No one in a position of authority is clamoring to end the policies that drive this cycle.
Our financial system and government have bloated themselves way beyond the means of our nation's economy to support them. The metaphor of the bubble is apt, as these institutions are made up mostly of air. There's no economic framework to hold together at this scale. Yet we find ourselves in a mad race to force feed their expansion.
Our nation has been shedding jobs at a rapid pace of late. This has had the predictable effect of reducing demand for gasoline, thus lowering prices. But stocks remain short and we're entering winter, when heating oil usage will go up. Coupled with the massive dollar devaluation that Bush, Paulson and Bernanke are spearheading, we should see fuel prices rising dramatically after the election.
Rising prices will run more loans into the red, necessitating more bailouts, further devaluing the dollar...
Perestroika is will be here for the next administration. Get ready.
Once again, 'The Modern Mystic' publishes another video, arguing what I've been here typing.
"And we go round and round and round, in the circle game." - Joni Mitchell
Did you demand any answers?
The who and the what and the reason why?
Did you ever question the setup?
Did you stand aside and let 'em choose while you took second best?
Did you let 'em skim the cream off and give to you the rest?
Did you settle for the shoddy and did you think it right
To let 'em rob you right and left and never make a fight,
never make a fight, never make a fight?
Ewan McColl - Ballad of Accounting