The Bailout

The Bailout

This is your pension

Will this $700bn bailout work? No and why should it, the last one didn't. It's the current U.S. administration's last ditch attempt to raid the cookie jar and treat their Wall Street buddies before the election next month.

And let's be clear about this. The U.S. government is not giving anyone any money–because they don't have any money. All they can do is print more.

And the rules of macroeconomics tell us that 'printing money' = 'inflation'. The dollar's purchasing power diminishes when the currency market is flooded. Those who get the money first get the current market value, those who get it later on (i.e. Joe Sixpack as wages) get the lower value. It's a simple inflation tax.

Soon the U.S. may even be looking at a total collapse of the dollar, food hoarding and price controls. This will of course assist in the creation of the PNAC's totalitarian state() . Congressmen had already been threatened with martial law if the bill didn't pass.

In addition, the bailout sends a clear message to those Americans with dodgy sub-prime mortgages: Stop repaying your loans.

The U.S. government will then buy these bad investments from the badly-run mortgage houses and the tenants will be given a soft landing–a phone call in a year or two offering reduced payment terms or temporary mortgage relief.

So the knock-on effects of this 'bailout' will spiral into the trillions. And for what? To maintain a broken free market system, which actually based on corporate welfare and cronyism, and to continue a spendthrift culture of mindless consumption and waste.

Contrast this with the oft-quoted estimated investment of only €30bn a year to permanently eliminate world hunger.

When the depression comes what can you do? Batten down the hatches and buy gold bullion.

[Listen to Peter Schiff on Lew Rockwell.]

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Endnotes:
  1. Naomi Wolf's take on this MUST be heard. [back ↩]