As I write this, I realize that much can change this week with regards to the Feds final plans and Congressional approval to rescue the banking industry. So what I am about to say is based upon what is currently being proposed. I also realize that what I am about to say will be only understood by a handful of people who understand the economics of this country. My disclaimer is that I am not an economist but someone who grew up under a constitutional form of government.
What is being proposed by the Federal government is socialism, spelled with a big S. Webster New World Dictionary defines socialism as following: 1. any of various theories or systems of the ownership and operation of the means of production and distribution by society or the community rather than by private individuals, with all members of society or the community sharing in the work and the products; 2. the stage of society, in Marxist doctrine, coming between the capitalist stage and the communist stage, in which private ownership of the means of production and distribution has been eliminated.
Our federal government is about to "nationalize" the mortgage market, the insurance, the financial institutions, and soon, the big 3 automakers, to the tune of $700 billion dollars, and as one economist said, the true cost is closer to one trillion dollars.
What does $700 billion or one trillion really look like? I was listening to Chuck Swindoll on the radio in my car this past week when he had another businessman explain to him the difference between one million dollars and one billion dollars. The businessman said if you had a single three foot stack of tightly bound one hundred dollar bills that would be what a million dollars look like.
On the other hand, a double stack of one hundred dollar bills tightly bound as tall as the Empire State Building would equal one billion. If this is true representation, we can say that $700 billion is doubled stacked one dollar bills 700 times taller than the Empire State Building.
Now where does all this money come from? It will come through increased taxes or by monetizing the economy, viz., start up the printing presses, which will produce inflation.
If the current proposal passes Congress, it creates a "Czar" position for Henry Paulson which gives him power that, according to the language in this proposal, is" non-reviewable by any court or any administrative agency." Paulson will have more power than our president that no one can challenge.
I keep asking the question but I cannot get an answer, "Where in our constitution does the government have the authority to do what is about to happen?"
There is talk about the Fed forming a Resolution Trust to liquidate all the bad loans these banks have accumulate. I suppose as a real estate auctioneer, I should be excited about this but I can't, not at the expense it will have on our country. And now, we are hearing talk about our government bailing out foreign banks as well because these banks have lent money to Americans.
When will all this insanity end? Not until you and I speak out and say enough is enough.
Comments(0)