What's your opinion on the bailout? ( Archived) (20)

---inflationary

And that's not the worst of it. The money doesn't even exist.
It's not like there is all this taxpayer money lying around waiting to be wasted. The banks actually create the money in the form of a loan that has to be paid back by the government with interest. Every dollar of bailout erodes the value of all the other dollars in the world because no new wealth is created. The existing wealth is just spread out over more dollars.

What is really happening is that the wealth of the entire dollar economy is being siphoned off and given to bankers (who caused all the trouble in the first place).

It's not at all a measure to shore up the economy. It's a feeding frenzy to take every last bit of value out of the economy before it collapses.

Atlas Shrugging!

A brief synopsis of the US situation.

For decades, deficit spending emptied the US treasury and acrued a massive US debt.

As the debt got bigger and bigger, other countries had to support the dollar by buying US treasury bonds because their own reserves were in dollars, and (under US pressure) OPEC countries demanded dollars as payment.

Eventually the inflationary pressure of all that outstanding debt became so great that other countries lost confidence in the US ability to ever pay its debts.

Countries began to diversify their reserve funds, selling dollars and buying Euros, Yen, gold, etc.

In the spring of 2008, Iran opened an oil bourse where OPEC countries could sell oil for Euros instead of dollars. That opened the floodgate. There was no reason for other countries to support the dollar anymore.

Dollar debt was no longer a good investment. Mortgage institutions went broke. The banks (who had wasted enormous profits in the past) were now losing money on their outstanding loans because of inflation. The bailout saved them from going broke immediately, but it only worsens the overall situation, robbing the populace to pay the bankers.

Meanwhile the government is militarizing its domestic police capacity (and building yet more FEMA camps) in preparation for the chaos soon to come.

Exactly

That's just the thing. As situations get worse and worse, instead of waking up to reality, most people actually buy into the delusion even more than before. Because they can't bear to face the reality that they have been taken for everything they have and that they are about to lose it all. It's so much more pleasant to imagine that things will turn around and the economy will recover. It's at that point that entire nations are willing to throw their support behind some slick talking dictator who promises to solve the problem if he can get unlimited control.
And of course the media and all the "experts" will be singing his praises.