Re: OT - Government bailouts, buyout and guaranteed loans

On Sep 19, 1:35 pm, "Robert Ladd" <rla...@xxxxxxx> wrote:
The economic manipulations being done and contemplated would be quite
hilarious, if it wasn't so sad.  I wish I could sit back and watch this as
an observer rather than as a participant.  Then I, no, not just I, we could
have a good laugh, but alas we're all being thrown under this huge economic
bus in this debacle.

The bailouts, buyouts, and guarantees that the government is making and
plans to be making will not be coming from some slush fund or insurance
reserves that were set aside years ago for today's eventuality.  The
government DOES NOT HAVE THIS MONEY sitting around to be making these
transactions.

THEY WILL BORROW THIS MONEY FROM US.  You might ask, "Do you mean 'US' the
taxpayers?".  And I would have to answer, "Sorry, no that would be too
dangerous to their career paths."   No, they don't do it through taxes,
because they would have to take that away from us in terms of hard cash and
we would object to that much too strenuously.  We would see our pay stubs
each time we get paid.  We see our 1040 forms when we calculate our taxes.
We would rebel.  Much like our forefathers did over 200 years ago.

Then how are they going to get the money?  The FED will conjure the money
out of thin air.  They will counterfeit the money.   This counterfeit money
won't be in physical one hundred dollar bills.  But it will be created just
the same.  The money will be in the form of electronic blips that will race
across the phone lines and the internet, bank wire transfers and such.  They
will use this magic money to back the companies that have taken more risk
than they should have, and those that shouldn't have been created in the
first place.

So then the next logical question is, "So the government is going to create
the money.  That's good, if the government creates it I won't have to pay
anything, why should that be a problem?"

Well, sorry to say, you will have to pay for it.  It won't be reflected on
you pay stub, it won't be shown as a line on your Income Tax returns, it
won't come out of your credit card or the dollars out of your wallet, but it
most certainly will disappear from the money you have.

You will pay it as a hidden tax, and everyone that has a dollar in their
hand, pocket, under a mattress, in a cookie jar, or in the bank will pay
that tax on every dollar they own or that passes through their hands.  From
the time you get a dollar until you release it, the government created
inflation will chip away at that dollar and if you didn't spend it before
you went to bed at night, the next morning it will automatically be worth
less goods and services than the night before.

For a family of 4, with Mom and Dad working and bringing home $1500 month..
Paying the rent, groceries, gasoline to get back and forth to work or bus
fare, some food, medical expenses, some heat in the winter, forget about air
conditioning in the summer, clothes for the kids to go to school.  Those
people below the poverty level won't have to pay that tax, right?

WRONG, THOSE ARE THE ONES HURT THE MOST.  They and the retired people living
on a fixed income from social security, an annuity, retirement account from
when they were working, disabled veterans that fought in wars and have to
find jobs from their wheelchairs, or that they can perform with one arm,
whether the wars were righteous or not, all are being taxed.  And the tax is
at the same rate to them as it is to everyone else up the scale of earnings.

Inflation caused by these bailouts, buyouts and guarantees is an insidious
tax that eats away at our economy like a termite infestation that we can't
see, and after a while, who knows how long, suddenly our economic house
crashes down into a pile of dust.  More than likely though it will be less
sudden.  Maybe the porch falls off first, and we patch part of it up and
then the floors start to sag.  Hey, we'll just stay out of those rooms.  But
at some point the house become uninhabitable.

And the worst part of it is we're being told that these are things that have
to be done, FOR OUR OWN GOOD.  They tell us that Fannie Mae and Freddie Mac
buyouts were necessary, again FOR OUR OWN GOOD.

They tell us this and they get the MSM to repeat it.  And when it's fed to
us over and over again, many of us start repeating it as if it's a fact.
IT'S NOT A FACT.  IT'S A FUCKING LIE.

The government didn't need to set Fannie Mae and Freddie Mac into business.
When the government starts getting involved in affairs that should be left
to the private sector they *** IT UP.   And when their *** UPS start
coming back to haunt them they simply use their ability to impose that
hidden tax on us to pay it off.  And they tell us they have to do it, again
FOR OUR OWN GOOD.

Companies that are backed by the government, or that know the government
will step in and help them have no "MORAL HAZARD".  They don't have to be
concerned if they take more risk than they should because it will all be
taken care of by those people that support the government.  Those taxpayers,
right?   NO.  YOU'RE NOT LISTENING.

Those bailouts are being financed by everyone that has a dollar to their
name.  They are being financed by those little old retired people, that
soldier working at a job with one arm, the family of 4 that won't be able to
afford the medicine to get Mom back to work quickly or they'll have to raid
the dumpster behind the bakery for a few scraps to get by, and by all the
rest of us too.

AND HERE COMES THE FUCKING FLAME.

I see so many on this group that BUY INTO the propaganda that these buyouts,
bailouts and guaranteed loans are all necessary and good for us, and that we
would be better than if we let them fail, and I WANT TO SCREAM AT YOU
FUCKING IDIOTS.

When these entities fail, then let it happen.  WE THE PEOPLE shouldn't be
bailing them out.  There will be plenty of private sector companies that
gladly step in and perform the functions as long as the Government isn't
stepping in and protecting and subsidizing their competitors.

Every time I see one of you DUMB FUCKS proclaim that it was necessary to
bail out one of these mismanaged, corrupt entities because "we can't let
them fail", I just want to grab the front of your shirt and slap you silly.

I'm so FUCKING FED UP.

Robert Ladd

Robert:

Please don't count me among the DUMB FUCKS you're castigating. I
agree with about 99 percent of what you've said.

You're right about the "hidden tax" (inflation) that is on the way.
Bill Gross, the celebrated mutual fund manager who runs Pimco, said as
much 30 minutes ago on CNBC. As it becomes increasingly evident that
we just don't have the money to cover all these bad debts and toxic
financial instruments, the Treasury will have to start borrowing on an
unprecedented scale. Interest rates will have to go up. (Does
anybody really believe that China and the Saudi's are going to buy and
finance all this debt at negative interest rates? Give me a break!)
You are correct that politicians will not vote to raise taxes in order
to bail out "rich people and Wall Street bankers," so we'll pay for
this via the hidden tax - inflation. Get ready to watch gold go over
$2,000.00 per ounce - at a minimum. We may not look like the Weimar
republic in 1924, but your paper money is going to lose purchasing
power - that's a guarantee.

You know, it's almost funny, but I bet Lenin and Marx are slapping
each other on the back right now and laughing with glee as they
joyfully remind each other: "See, I told you the United States would
eventually become a socialist country!" The ultimate irony is that
China and Russia are moving toward free market capitalism at the same
time that we're rushing toward socialism. And all this happenned
under our first "MBA President ..."

Alan C. Lawhon
Huntsville, Alabama
.