As Wall Street cheers yet another bailout, I don’t know whether to curl into the fetal position and cry or grab my pitchfork and torch and rush the Capital steps. Our Capitalistic society just died today. Once FDR ushered in the New Deal, the Republic started its downward spiral. Today we saw that spiral stop at the bottom of the pit. I used to be a perfectly sane person who thought conspiracy theorists were all a bunch of wackos living in their mother’s basements. A few years ago though, I started noticing some disquieting things about our government. I started studying our history and wondering where the ideas of the Founding Fathers went. I started to believe that it really was possible that some secret group of people was sitting in a smoky room somewhere planning the demise of America and the birth of Utopia. That is really the only way I can explain what has happened not only with the destruction of the Constitution, but with the fall of our economy. This was either a masterful plan or an ineptitude of such levels the human mind cannot even fathom it.
So today a somber President Bush – who is watching any legacy he might have had crumble – came out and announced that the government has decided to roll the dice with our money because they had no other choice. He announced a government intervention of the type that this country has never seen, not even in the Depression. A new agency will most likely be formed in the early parts of next week after Congress puts their stamp of approval on this thing. And this new agency’s purpose will be to absorb at least a half trillion (we know it will be far more) dollars in worthless mortgages and other bad debts. And the rolling of the dice is that the government hopes some smuck country or bank will buy these bad debts. At least during the S & L Crisis there was some kind of value to the debt whereas there is no value here. The only reason another country would want to touch this is to get more control over us. Here comes China – does everybody have their red flag?
Even money market accounts which are trusted as sure investments have been threatened. And how is that possible when they are FDIC insured? Because the FDIC is now a joke. They don’t have the money. If we all pulled our money right now, there wouldn’t be close to enough to cover our deposits. There is currently thought to be three trillion dollars in currency in circulation right now. When one considers that our debt is at 75 trillion, well that fetal position image is coming to mind, right?
Barack Obama commented that we are all in this together. I’m assuming he was talking about Washington and his political cohorts that since the creation of the Federal Reserve have been working for such a day as today. I also heard something else hilarious on the radio. Obama ran an ad to get young people to log onto some “Change” website to register to vote. Throughout the ad, young people were making comments about why they want to vote. One of these morons said he registered because “he wants to make sure social security is there when he retires”. Bwah ha ha! I want to smoke whatever he is because that’s some good s*&#!
Henry Paulson, the Treasury Secretary had this to say, “I am convinced that this bold approach will cost American families far less than the alternative _ a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion. The financial security of all Americans … depends on our ability to restore our financial institutions to a sound footing.” Sound footing, eh? As long as these guys ignore the simplest concepts of the economy like don’t spend more than you make, they will never be secure. I honestly am fearful about where this leaves our country. I’ve been banging the warning gong for sometime – I just hoped it would happen after my lifetime. And so now our economy is starting to take the shape of some socialistic entity. The government will own a ton of real estate (and with eminent domain they can take anything else they want), they own 80% of AIG and they will be the holder of these bad debts through this new program making them the big bank, even more so than the Federal Reserve. More government, more government, more government…
I do have a ray of sunshine on the horizon though. I picked up tickets today to go see Sarah Palin on Sunday here in The Villages, Florida. I will be packing paper and a camera and will give a full report. I might even post a picture of my mug from the event.