UNCLE SAM'S BAILOUT PLAN IS JUST MONETARY MORPHINE
By Paul Proctor
September 24, 2008
In a May 7th, 2008 article titled, Paulson Sees Credit Crisis Waning, the Wall Street Journal reported the following:
Treasury Secretary Henry Paulson said U.S. financial markets are emerging from the credit crunch and that "the worst is likely to be behind us," marking possibly the most optimistic comments yet from the Bush administration on the financial crisis.
And, in another report posted on the Yahoo Finance page that same day by Aaron Task, in part, titled, 'The Worst Is Behind Us', it was revealed that Paulson wasn't alone in his "optimistic" assessment of the economy. Merrill Lynch's chairman & CEO, John Thain allegedly agreed with him. In fact, the article states that, at the time, there was "near unanimity of opinion on Wall Street" that the "worst of the credit crisis is over."
You remember Merrill Lynch, don't you? That's one of the former top five investment banks in the country that Bank of America is purchasing for 50 billion dollars - as if they could afford it. No word yet on whether Thain has had an official change of heart.
But, in spite of these and other reassurances we were given earlier in the year, ABC News is now reporting the following in an article titled, Angst Returns to Wall St.: Stocks Dive, Oil Soars:
After a brief spell of elation, angst has returned to Wall Street.
Financial markets' initial relief over a $700 billion U.S. government bailout plan has given way to concerns the rescue package may cost too much, drive up inflation, swell the already-bloated deficit and hurt the ailing economy.
On Monday, investors sold off stocks, sent oil prices to their biggest one-day gain and dumped the dollar.
In response to the economic calamity that began unfolding last spring, I wrote an article for NewsWithViews.com, posted March 26th, 2008, titled, The Worst Is Yet To Come, warning readers that a disinformation campaign would soon be launched to deceive them, saying:
Though the economic pain is starting to spread far and wide, I believe we have a long way to go before finding bottom.
In the near term, I suspect there will be a lot of talk that the worst is all behind us and that things are starting to look better in certain segments of the economy. This kind of propaganda is likely to be repeated over and over again on the evening news to try and prop up consumer confidence in the face of rising prices, declining demand and plummeting profits.
I followed that article three months later with another titled It's Not An Oil Problem!, that proved my propaganda predictions accurate and included a response to dramatically rising gasoline prices that many had mistaken for, among other things, a supply & demand problem, saying:
�it is not an oil problem we're facing - it is a money problem. But, those in charge of the money don't want you to know that. They want you to aim your angst at everyone else involved from gas station owners, to commodities speculators, to radical environmentalists to big oil companies to OPEC - anyone and everyone but the fractional reserve lenders who relentlessly devalue your dollars and mine by printing and circulating too many of them.
On Monday, the price of oil jumped $25 a barrel - the most ever in a single day - closing up $16+ to $120 a barrel - even though gasoline prices have been largely holding steady and even dropping in some areas.
Those with eyes fixed on supply and demand couldn't make any sense of it - especially after, only days ago, the price of oil had dropped. But that was before a $700 billion economic rescue plan was announced to help fund the enormous debt killing the mortgage industry.
You see, that money has to come from someone, somewhere. Though most of us know the burden will end up being laid on the backs of average Americans in the form of future taxes, I must reiterate that someone must loan it to us first. That someone is going to be the Federal Reserve via the U.S. Treasury.
Where do they get the money, you may ask?
They print it in whatever quantity they want out of thin air, with nothing of value to back it up, and then pass it out as needed to temporarily and artificially keep the economy afloat. When they do this, which they have been doing now for decades, guess what happens? The value of the dollar plummets - now reportedly worth about 2 cents of what it was was when the Federal Reserve Act was passed back in 1913.
Just take a look at the government's current federal poverty levels for individuals and families in America now, posted on the Health & Human Services page, 2008 HHS Poverty Guidelines. People with the earnings displayed there would have been considered wealthy in the first half of the 20th century.
So, what happened?
Did goods and services become increasingly more valuable and thus more expensive over the years?
Nope - the dollar was devalued year after year, and is continuing to be devalued at an ever-faster rate.
Of course, OPEC knows this; and so when they hear that the Fed's printing presses are rolling at high speed and the government is throwing money at everyone and everything in sight, they realize it's time to jack up the price of their oil again because the dollar we buy it with is diving - which of course, they did as soon as the bailout plan was announced.
What does this mean for our future?
The government calls it "hyperinflation" as if the cost of goods and services were going up - as if it were OUR greed and insatiable appetite for more that was driving prices through the roof.
I call it a hyper-deflation of the dollar because that's what it really is - a secret and ever-growing tax on Americans that quietly robs us of our purchasing power by decreasing the value of every dollar earned, saved, invested and spent.
I've said it before and I'll say it again: The Worst Is Yet To Come.
Prepare for hard times friends and ignore all of the governmental promises, programs and quick fixes they keep injecting into the economy in the form of federal loans and bailouts to try and cheer us up and keep the illusion alive.
It's just monetary morphine given to hold down the screaming and temporarily ease the pain of a dying economy while they whisper in our ears that everything's going to be OK.
So, where do we turn for help?
Reuters is reporting that some on Wall Street are turning to religion.
Of course, religion never saved anyone - neither can a god spelled "Gov"; but in and through this unfolding crisis, hopefully many will lose their faith in creation and all its riches and turn to the Creator instead.
Whatever happens, Jesus Christ remains our only hope for the future. He may not save our economy or even our country, but He will save those who call upon the name of the Lord. (Romans 10:13)
"In the beginning was the Word, and the Word was with God, and the Word was God. The same was in the beginning with God. All things were made by him; and without him was not any thing made that was made. In him was life; and the life was the light of men." - John 1:1-4