Forget back-door socialism: this was right through the front door. The consequences would have been dreadful and very scary. It was to be the first of many bailouts, since of course it cannot and would not work. Bad debts can’t be made good by legislation. This means that more money would be necessary, as the middle class was sucked dry by the vampire state for years to come. Deeper and deeper economic depression — a repeat of the ’30s — was certain. Best to put a stop to this now. FULL ARTICLE
Source link: http://archive.mises.org/8648/the-near-death-of-the-state/
The (Near) Death of the State
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Thanks for this intelligent article. Hopefully not a voice in the wilderness.
The bailout legislation is a litmus test: am I for or against liberty? Am I living my principles or compromising them? Not surprisingly, the true defenders of the free market and liberty stood tall without blinking an eye. For me, it was a teaching opportunity for my son. I got turned on to Hayek and Austrian school of economics during college (while taking a course in Marx/Marxism taught by a die-hard Marxist which sparked a philosophical watershed), so now I have another opportunity to explain why the socialist system is a failure.
I’m just holding my breath waiting for the politicians and their media mouthpieces to start shrieking that the federal government needs to prop up the price of oil…
In England, we remember wise King Canute who sat before the rising tide and bade it to stop, to show his courtiers that he could not change reality. No matter that he is often mis-represented as an arrogant fool who tried to stop the tide, the message is the same. No amount of royal or federal (the British Royal Family are a lot cheaper than the Feds, and more engaging) will alter the fact that there are debts that need to be dealt with. The Feds’ choice is ultimately to replace the “American” dollar with something that has parity the Zimbabwean dollar or not. A to Z.
Fans of “The Hitchhikers Guide to the Galaxy” by the late Douglas Adams will remember the Golgafrinchans who arrive on Earth and need to build an economy. They declare leaves to be their currency and find they have an inflation problem, so they mount a massive deforestation campaign to reduce the number of leaves and hence inflation. Now we see the opposite approach in the USA, with the same outcome.
Farewell US dollar, we’ll be seeing a lot more of you now.
Alas, they are coming back! And, McCain, who might turn out to be our Manchurian Candidate, has opted to do the bi-partisan dance. And, of course, a lot of senators will fall into line.
Even though the US Constitution says that all appropriations begins in the HOUSE … I guess the vote that failed is called “Well, that’s the HOUSE,” and now the Senate can play.
On Wednesday, when the ramming begins again it should be noted that the cry will still be “meltdown!”
And, what’s being melted down is our Constitution! By the worst president we’ve ever had. By the real lack of choice available to voters on 11/4. And, by the bribes the banks can toss into the pockets of the legislators.
While, yes. American taxpayers will be asked to “bail out” the toxic loans at the HIGHEST PRICE! While the market place wouldn’t be that generous. And, the senators? They think the public’s very stupid. Besides? What can the People really do? Keep voting in new bodies? All of them stink.
Oh. And, I do expect that after Thursday night, should Palin pull off a resounding success in the debate; the game plan is for Biden to “bop out.” And, Hillary to take the veep slot.
How can America be saved, now?
Unfortunately the traitors in the senate will move forward with “forcing” the house to deliver this destructive measure to the president. I hope for all our sakes that the results of the failed vote on Monday will convince enough congressmen to vote their conscience that it will make a difference but I hold very little hope.
Yes the bailout bill and all the bailout efforts to date will delay the correction and cause a longer, deeper recession/depression but I honestly believe that is the intent of the Fed, the Treasury and the power brokers behind the throne. Push the country into a depression, cause hyperinflation as a means to win a war agaibst freedom and the middle class. How else can you explain it, simple greed? simple stupidity? In my view it is simply treasonous.
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