ECONOMIC BAILOUTS, Golden Parachutes: Can you smell the socialism cooking?
Posted October 7th, 2008 by KPatrick
On Sept. 18, 2008, the Fed announced an unprecedented $180 billion booster to world markets, plus $85 billion to nationalize Freddie, Fannie, and others possibly to come. This is after it's $300 Billion in the past few years to stimulate markets. If you are wondering why your wallet seems a bit lighter, this might be why. As economic turmoil looms on the horizon, what does our supposedly conservative President have to say on the matter? Is it something about free markets? Not quite:
"...Government intervention is not only warranted, it is essential," --- George W. Bush
Bush, the man who ran on a 'humble foreign policy' in 2000, a self-professed ‘Compassionate Conservative’ said that the bailout would require "significant amount of taxpayer dollars." Treasury Secretary Paulson announced that it would amount to "hundreds of billions.” We now know about where that number is.
The week of Sept. 21st saw Congress close to accepting Secretary Paulson's Bailout deal which would amount to over $700 billion! Add on to that a War (Iraq and Afghanistan) which costs the American Taxpayer $17 million every hour; our economy is sad shape. However, our government would have you think that something illusive is to blame; not government intervention, central planning, or corporatism: buying and selling out public employees like it's on Wall St. all to get taxpayer-funded subsidies.
After nationalizing two major home mortgage institutions, plus the bailout of AIG, which insures about 50 percent of insurance policies; what sort of economic shifts can we see next?
"This is a pivotal moment for America's economy," Bush said; and is he ever right!
The Russian government forced its markets to close on Sept 18th to attempt to deal with the economic flux. Markets in Europe, and Central Banks across the world are also trying to figure out ways to intervene. The problem may lie in their solutions, however. As the Central Banks of the World manipulate and intervene in the economy, they create the boom-and-bust cycle, causing the bubbles like we saw in the housing markets. Printing off money whenever one needs it is not sound fiscal policy. One might think that World War I and modern Zimbabwe would have taught us that.
Washington also had to reign in Wall Street to prevent massive sell-offs of stocks.
So where does this leave us? The Fed is printing off hundreds of billions of dollars that the US economy just does not have (effectively robbing the populous); and that puts We the People in a tough spot, indeed.
In an unusual turn the Senate made amendments to the Bill, even though it had failed the House that week. The House then passed it by a significant margin. One Senator from California said that she had received over 91,000 emails and phone calls about the Bailout. More than 85,000 were against it. But she said she knew better. She would vote against her constituents, and vote yes on this massive Bailout; which now reached over $850 billion! This includes $100 billion in the President's discretionary budget with no oversight...
This was nothing short of the Economic version of the Patriot Act in which Secretary Paulson made a massive power grab. The DOW fell below 10,000 for the first time in four years, and the markets saw 5% to 7% drops on several different days in several countries on more at least 2 continents. This bailout will not stop the recession, they will just buy us a few weeks before the Depression (at some cost), and make it all the more severe.
This commentator's advice: plant a garden and buy some silver...
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This is an article written for The Mountaineer Jeffersonian, and is copyrighted to that publisher and this author. (C) 2008
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