I’ve attended a few performances by David Copperfield and he has performed the unbelievable. Before my very own eyes a group of thirty people vanished into thin air. Where did they go? I watched the unbelievable made real right in front of me. How could this be an illusion created to fool me into belief? I ask you… HOW?
David Copperfield and Harry Houdini would probably be a better pair to run the government at this point. At least they would give us a good show. The current officials in office make my gut wrench. We have migrated from the land of the free to nationalization of private property in the name of free markets. Whoa… okay let’s get something straight. WE DO NOT HAVE FREE MARKETS… NOT EVEN CLOSE
If we actually had a system that represented free markets the Federal Reserve (a PRIVATE bank made up of member banks that are also PRIVATE) would not exist, we would still be on the gold standard, and the government wouldn’t even consider a bailout of the taxpayer’s funding, and the United States Treasury would not be proposing this amazing relief package for those who are mainly responsible for getting us into this mess.
So, I mentioned two masters of illusion… Why? What is being pulled off at the moment is happening in front of our eyes and for some like me is atrocious. However, for others they think it is essential to the integrity of financial markets, financial institutions, and YOUR house. The entire bailout is being purported as a bailout for the helpless homeowner, the saver, the middle class.
The problem is that nobody knows how much any of this debt is actually worth. Say the government buys $700,000,000,000,000.00 worth of debt at $0.20 on the dollar, which is great discount. If that debt is in reality worth less than that we have a problem. When will these notes be paid back, and in what form are the notes?
Chris Martenson managed to grab part of an article that later disappeared from Bloomberg that said:
“The Treasury’s thinking is to make it as big and wide as possible so they have the flexibility to act if need be,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors, which manages about $108 billion. “There have been losses on a whole range of U.S. debts and as the economy deteriorates in response to the housing slump those losses could escalate.”
Treasury officials now propose buying what they term troubled assets, without specifying the type, according to a document obtained by Bloomberg News and confirmed by a congressional aide.
This effectively means any type of debt. Let’s take a moment to see what forms of debt exist:
- Credit Card DEBT
- Mortgage DEBT
- Automobile DEBT
- Bond DEBT
………. and the list goes on ………….
So, we have the United States government wanting to take on all this debt in the name of saving the financial markets. Let’s just take the debt from the banks to clear up their balance sheets so they don’t have to write it off, which would cause them to have to increase their reserves because their assets are now below the minimum. We could lower that further, but it has already been lowered to 3% of total assets. That means they most likely loaned out the other 97%.
As the Fed creates money our dollar is worth less and less. Where is the Federal Government going to come up with $700 Billion dollars? They will create it from nothing, which the Federal Reserve is great at doing. Inflation will not solve the problem, only exacerbate it. Newt Gingrich opposes it, and admits that if he is wrong in not supporting it that it is the lesser of two evils.
If this bill passes please say goodbye to the dollar as we know it. Foreigners might finally reach the breaking point to where they are afraid to purchase dollars and realize that buying them to keep their currency less expensive is futile.
