Posted by: nhfalcon | October 3, 2008

I Need A Little Help Here

I am not a politician. Nor am I an economist or a political scientist. I don’t know that I’d even call myself a historian. I’m an aspiring social studies teacher, but that’s about it. As such, I’m always trying to broaden my horizons, learn new things, and get questions answered.

My current question is about this whole $700 billion bailout that just got approved (after much modification). Correct me if I’m wrong, but basically many of the major players in the financial industry handled their businesses at best foolishly, at worst corruptly, resulting in their businesses for all intents and purposes bankrupt. These businesses going out of business would have been devastating to much of the general public because these businesses handled, among other things, home loans and stock market investments. If they had failed, a lot of people would have either been out of a lot of money and / or possibly even their homes. As such, many players at the top level of our government felt this bailout bill was a good idea.

Many did not.

My question is, why not? I mean, I understand the principle: these morons are in the position they’re in because they’re either idiots and / or sleazebags, so why are my tax dollars going to bail them out of the mess they put themselves in? I get that. But when I see how the bill has been modified in order to get passage from the Senate and (after a second try) from the House, I think I see some good things…

* – $150 billion in tax breaks to individuals and businesses

* – increasing bank deposits covered by the FDIC from $100,000 to $250,000

* – increasing mental health coverage

* – incentives for the use of renewable energy sources (part of the aforementioned tax breaks)

* – 7.6 billion in disaster aid

* – relief from the alternative minimum tax

* – aid for schools

* – hell, just the fact that Republicans and Democrats are voting with their own individual damn minds rather than along their party lines is encouraging to me!

Let me emphasize that “I think I see some good things.” I’m not sure. Are these things good, or is my naivete showing through?

Any help would be much appreciated. Thank you.

Oh, and please, folks, let’s play nice here. I’m well aware that politics tends to get tempers up, so try to make sure you think before you type, ok? 🙂

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Responses

  1. Hi Erik,

    First of all I want to thank you for inviting me to your site and giving me an opportunity to share some information with you. As a candidate for the Maine State house and as an activist with the Campaign for Liberty, I have studied our economic problems quite extensively. I am going to share some links with you to help me explain. Most people think they understand where money comes from but if you knew the truth it would make you sick. Before you read any further, please watch this video

    http://video.google.com/videoplay?docid=-9050474362583451279
    http://moneyasdebt.net

    If the link is not live, please copy and paste it into your browser window.

    The Federal Reserve Bank is not government agency. The Fed is a private corporate bank and most of its stock owners are foreigners who could care less about us Americans. The Fed has never in its 95 years of existance been audited. The Fed has in its history never done one thing its stated purpose said it was suppose to do. Instead it has done the complete opposite. To understand how damaging the Fed has been to ours and other countries economies, go to google video and look up the full version of America: Freedom to Fascism, by Aaron Russo and watch it. If you live in Portland, ME, it will be showing all this month on our public access channel.

    In 1913 with the passing of the Federal Reserve Act, Congress gave its constitutional power to create money to this private bank. Our founding fathers have many quotes warning us of the danger of central banks and paper money, but President Wilson who was funded into office by bankers helped get this bill passed into law.

    In a nutshell, when our government wants money, they print out bonds and sell them to the Fed. The Fed, then hits a button and prints money out of nothing to buy the bonds. The bank does not own this money, but it does charge interest on the money it prints out and loans to other banks. It also charges interest to us whenever our government borrows money from it. Because our government backs all these loans from the Fed, if a loan defaults –and many of them do–the taxpayer (us) pays for it. Our government also has an invested interest in 40% of all the loans made out to third world countries through the World Bank and the International Monetary Funds (IMF) Since almost all third world countries have dictators, those loans always default and the American taxpayer is responsible for the 40% of the principal and the interest owed.

    These huge corporate banks and financial institutions Morgan Chase (owned by the JP Morgan and Rockefeller families) and Goldman Sachs own 50% of all the derivatives in the world. The Rockefellers, JP Morgan, and minions of the Rothchilds (of Europe) were the men who tricked our congress and the american people in order to create the Federal Reserve. They are the richest of the rich or the elite of the world. If their banks fail, its a drop in the bucket to their wallets. They are the people our elected servants on Pennsylvania Ave listen to instead of us. They are our hidden government.

    Secretary Paulson used to work for Goldman Sachs. The $850 Billion bailout package the Senate passed on Wednesday and the House passed yesterday not only was filled with pork as you pointed out Erik in your post, it had a stipulation that instead of congress handling this bailout and all future bailouts, that power would now go to Paulson and to the Chairman of the Federal Reserve Board.
    Buried in that 450 page piece of legislation was stated that foreign banks would be bailed out as well and the American taxpayer would be responsible for covering the bailouts. So not only are you and I and our children reponsible for this and all other bailouts, our great-great grandchildren will still be paying for it. While we were all focused on this legislation, over $2 trillion was loaned out to other companies that needed capital.

    Even with these bailouts, nothing was done to change the policies that allowed these financial institutions to create this mess in the first place. They will still foreclose on homes and they will still speculate in the market driving up the prices of oil, food and other commodities. Now un-elected officials will be able to decide if a bank will be nationalized or bailed out. Printing all this money is destroying the dollar. We have trillions of dollars in debt owned by China, India and other countries, who when they stop believing our money has any value will call in their loans.

    We were headed towards a depression regardless of the bailout. The housing bubble needs to burst but they keep making it bigger. The more they delay the inevitable the worse it is going to be and the longer it will take to recover from it. They are actually doing the same thing they did in the 1930’s to prop up the economy after the crash and that depression lasted 15 years. If they just left it alone and let the market take care of itself, we might be able to recover in a year or two.

    That is why it was important not to pass this legislation.

    For more info on the FED read “The Creature From Jekyl Island” by G. Edward Giffin. Get it at http://www.realityzone.com

    To fix this problem we first need to get rid of the FED and have congress go back to creating our money. Forgot to tell you our money is not backed by gold. We need money backed by something of value. We need to get out of the UN because they are a global government. Only then can we begin to restore our economy and our country.

    On November 4 when you go to the polls vote the bastards out. You know who they are since they all voted in favor of the criminal bankers. In my eyes this is treason. After you do your own research you will think so too.

  2. “A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself.

    For the traitor appears not a traitor; he speaks in accents familiar to his victims and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murder is less to fear.”

    Cicero Marcus Tullius
    106-43 BC

  3. I’m so shell-shocked by all of this that I don’t know WHAT to think anymore. Besides, I’m an English teacher who’s not afraid to admit that she sucks at math and doesn’t understand the workings of an economy, anyway. Aren’t we just making it all up? What makes this little piece of something worth more than that little piece of something? I just don’t get it. Sorry – not helpful, I know, but I’ve really got nothing here.

  4. This whole boondoggle is summed up by: “Hey, us rich people have to stick together. Let’s pull the wool over the taxpayers’ eyes and tell them the sky is falling. Let’s use a figure, say, $700,000,000,000 sort of like with the big dig. It’ll cost trillions, but, you know, an O.J. trial or something will distract the Great Unwashed by then.”

    Something like that.

    Oh, the $250,000 insurance limit by FDIC. What a laugh! They’ve always paid every penny, regardless of the limit of coverage, so the sort-of-wealthy up to the really rich never lost a penny.

    Sickening.

  5. Chili, nothing is worth anything unless we all agree that it is so. Diamonds, gold, platinum, are only valuable because we say they are. So it’s a societal construct and we’re at a point along the continuum of what started way back when someone traded some mammoth meat for a quail…or something.

  6. Erik,

    I understand all this at about the same level as you (and Far Less than Donna), but I also heard a very telling statistic.

    The money being spent by the Government (our tax dollars) to bail out the crooks who caused this whole mess would be the equivalent of giving every taxpayer (husbands,wives, and part-time working teenage/20-something kids living with their parents) a 300,000 dollar check. I’d rather take the money than the bailout.


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