Sunday, September 28, 2008

Another POV

So now we're set to give banks $700 billion. In exchange, we're getting paper not worth the $700 billion. But we do not have any savings account with $700 billion, so we will pay interest on that. To whom? If I understand things right, to the Federal Reserve, which is a private corporation the board of which is composed by the bankers receiving the $700 billion.

Sounds bad, right? And even if I was wrong and it is some other third party receiving the interest on the $700 billion, one thing is for sure. We simply cannot pay ourselves back, because we did not have any of that money to begin with.

Really. In this context, I go around and read quotes such as the following.

"We sent a message to Wall Street - the party is over"

"People have to know that this isn't about a bailout of Wall Street. It's a buy-in so we can turn our economy around"

"Nobody wants to have to support this bill, but it's a bill that we believe will avert the crisis that's out there"

"We begin with a very important task, a task to stabilize the markets, to protect all Americans - and do it in a way that protects the taxpayer to the maximum extent possible"

Is it me, or these quotes have nothing to do with the situation? Exactly who is calling the shots here? Let me quickly go over something. The people that owe money do exactly what the people that lent the money tell them to do. And it is us who owe tons of money. $700 billion is nothing compared to the national debt, so sorry, it is not us who get to say what happens.

No my friend. To me, these quotes above sound like what government types in Argentina would say. I know. I used to hear them all the time, and saw the consequences first hand. So, given that we know what happened to them...

... oh...

Land of the brave, sure. But the free? I do not think so.

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