Funny Money (Paulson a reverse Robin Hood)

[marmar]

from HuffPost:




David McWilliams
Funny Money
Posted April 2, 2008 | 03:03 PM (EST)





When an institution of government decides that it is alright to privatize profits on the way up but nationalize subsequent losses on the way down, you know that something deeply undemocratic is playing out. The ideas that have been ventilated this week by Hank Paulson, supported incidentally by the major presidential candidates, are nothing short of a reverse "Robin Hood" scenario where the poor are being robbed to pay for the rich, so that the rich need not pay for their own mistakes.

Many of us non-Americans, looking at this carry on from Europe, are amazed at how few American commentators are questioning the idea of a massive bailout for the housing -- and by extension -- banking sector. But then again, maybe we don't quite appreciate that in a services society, there isn't much more going on than a banking sector financing and extending cheap loans, and a population happy to use their houses as large ATM machines.

Now that this scam has been exposed as little more than a giant Ponzi scheme, how long before the rest of the world refuses to buy U.S. government stock, because holding dollars is one of the quickest way to loose money? Because the Fed continues to print dollars, the dollar, and thus the wealth of the average American, is being embezzled away by the state. This constant erosion of American's wealth went into overdrive in recent days as the Fed accelerated the debasement of the dollar by throwing money at the banking system.

Pretty soon, foreigners are going to reach the end of their patience with this game. They/we will rightly conclude that it might be okay for the U.S. government to rob its own people, it is after all a democracy, but they are not going to rob us anymore. (Those who doubt that countries in long-term decline do not debase their currency to mask their financial feebleness just have to consider the descent of Sterling as Britain ceded global power to the U.S. after WWII). .....(more)

The complete piece is at: http://www.huffingtonpost.com/david-mcwilliams/funny-money_b_94689.html

[Hydra]

1. We're flushed for the benefit of people like Cheney

And nobody can be bothered to do anything about it.

Bail out some banks? "Sure, we have money for that!"

Help some poor people? "Screw them! It's their fault they're poor!"

How long are we gonna support socialism for the rich and not for ourselves???

[marmar]

2. "How long are we gonna support socialism for the rich and not for ourselves???"

Amen. ....And average people who are being screwed by this system will defend it with all their might.....It's like abused spouse syndrome.