Wednesday, January 27, 2010

Economics is more a religion than a science

The "Bailing" out of the bankers did not work other than to create more debt on the deeply red balance sheet of the US treasury and the idea that capping the federal budget is going to make any dent to oppose all the free money that reckless bankers received is the height of futility.

Bankers did not lend money. In fact they contracted the lending of money give or take a few banks that whose leadership is no longer among us.

Now the idea is to raise the interest rate on the amount of money that they bankers received from tax payers to encourage them to keep it with the Fed in order to prevent inflation from roaring is also another misguided step that borders on Bailout Heist Part 2 levels.

Not only have the American People been insulted in a shameful way once, but now their perceived lack of intelligence is the excuse for this next ruse.

Bankers are already not lending. Giving them a greater return from the FED at the expense of more deficit interest rates is ridiculous.

Raising taxes on the citizens in favor of tax dodging corporations is also pointless if it is done to help the citizens.

It can only hurt the citizens. The United States is not a Democracy nor should it be a Socialist Democracy. It is a Constitutional Republic that can be disbanded if the constituent states are overrun by an out of control Government that is spending like a drunken sailor.

All the silly bailouts have done nothing but provide a record year in Bonus money for the criminals who were most responsible for the mess to begin with.

And now the talk of giving banks more money to prevent inflation is a disgusting way of robbing people again with the same money they already lost in the Great Banker Heist.

Instead of giving money to the highly levered insolvent creditors, giving the trillions in money to the debtors instead would have actually stimulated the economy via an actually functional multiplier effect which would have lessened the need for the trillions and would have only needed less than 1 trillion.

But that would actually stabilize the economy and when you have powers that want to kill it pretending to save it, this won't fly.

Followers of the religion that is economics should watch this guy's lecture. It might enlighten some of you who do not put in credit into the equation:

The only inflation that has happened since the credit bubble crash and subsequent bailout is an inflation in Government Debt, deficits, health care and energy costs.

We get it. We are consuming the world at a rate that dwarfs the size of our citizenry compared to the rest of the world and the old world moneyed Europeans are a bit jealous and afraid that we'll consume their part also.

So Please stop pretending that you want to fix our economy. We know that you are doing everything in your power to destroy it, whether we like it or not.

No comments: