Every Friday the LA Progressive features a comment that was particularly noteworthy. This week we are featuring a comment submitted by Ivan as part of the many response to Robert Reich’s “The Stimulus: How to Create Jobs Without Them All Going to Skilled Professionals and White Male Construction Workers.” Ivan writes:
“The two interlinked problems in America are first; that we borrowed so much money from other countries to finance insane irresponsible and irrational consumption while not producing anything nearly so valuable to sell and we just consumed it; and second, that we allowed corporate/financial multinationals to engineer the largest fraud ever perpetrated on Earth (derivative financial instruments and “packaged debt” that fraudulently indebted our entire nation and the planet to the point where the creditors now see that we aren’t good for paying back the debts and that we will likely not be good for it in any near future).
The people who developed these derivatives essentially printed up funny paper and sold it to rubes and greedy Ponzi scheme enthusiasts knowing it would all blow up later because it was ridiculously untenable when you looked at the real numbers and any good banker knew that. They knew that in the end everyone would nonetheless have to cover for the fraud because the fraud was so huge and global that whenever it collapsed the Chinese could repossess the United States for pennies on the Yuan, but the bankers/frauds knew we would never allow that, but rather go to war to prevent it, thereby essentially planning on ‘killing the creditor” if push came to shove.
The minute they sold that funny paper to someone else, they got nice hard green dollars that someone had to work and be productive to earn – i.e. they got everyone’s REAL money in exchange for worthless funny paper – fraud, plain and simple. We then allowed…no, not “allowed”…we PAID the perps another $700 billion to completely get away with this insanely huge fraud, not scott free (no offense to Scottish people), but with a gall-darned windfall bonus of $ billions!! This is utter madness and a total public disconnect from reality. TV and newspapers are selling it to the dumbed-down public and everybody seems to be falling for it AGAIN! H.L. Mencken was SOOOOOO RIGHT!
This is American economic stupidity at its zenith.
WE NEED TO LET THESE INSTITUTIONS TOTALLY FAIL AND WE NEED TO ALLOW THE NATURAL AND PROPER PRICE DEFLATION THAT WILL RE-BALANCE THE MARKETPLACE!! If we follow the fraudulent pundits’ bad advice and borrow more in an extremely stupid fantasy of “stimulating” and “not allowing deflation”, all of that newly borrowed money will wipe out all the short term gains it produces through even more radicalized inflation. Remember: inflation means everyone thinks your money is worth less than yesterday so they raise their prices. Borrowing trillions will make your money worth even less AND IT STILL HAS TO BE PAID BACK LONG AFTER YOU HAVE LOST YOUR PURCHASING POWER.
Again, deflation MUST happen to re-balance the markets because our money is radically falsely inflated by debt-financed expansion – there is little real value behind it because everyone who’s smart knows it mostly represents unpayable debt. Really when you think about it clearly, deflation WILL happen no matter what – the only question is do we get it over with fast and healthy by allowing the crashes, or unhealthily drag it out for decades with stag-flation and dead productivity. We cowardly put it on our children by borrowing insanely more when we’re not good for what we already owe. And Americans fancy themselves such tough guys.
Dummies! If you swallow any bailouts at all, and their attendant hyper-inflation and moral jeopardy, you will simply be further reducing everyone’s confidence that you’re good for paying it back, and in fact you really WILL BE less able to pay it back, which means that IT REALLY HURTS YOU, AND IT DOESN”T HELP YOU AT ALL. The only person who more debt helps is the lender, (up until the borrower defaults, as essentially just happened with the U.S., and even then they engineered a windfall for themselves for their failure – more fraud).
Ask Thomas Jefferson: it is an ancient tried-and-true banker’s scheme to, through managed inflation and deflation, buy out all your real wealth at pennies on the dollar – it is monetary slavery. It would behoove every American to start learning how the scam works if you want your children to live in anything resembling traditional American liberty. We must allow prices to deflate to their proper natural levels!! Don’t listen to the bankers on TV – THEY ARE NOT ACTING IN YOUR INTEREST. They are acting in their own interest, NOT YOURS, and Reich for all his seeming liberalism is really one of them. Don’t be a chump.
Not allowing all these companies who went for the Ponzi scheme to fail, as they should when they knowingly made insanely anti-social fraudulent decisions about how to fleece the wealth of productive people (with the government’s cynical encouragement) through a totally non-productive global financial scam instruments, made America’s moral jeopardy TOTAL and totally undermined all real productive behavior and worse yet, the rule of law and human decency itself. A bailout/stimulus of any kind is truly the worst thing we could do – it very powerfully rewards the totally irresponsible and the criminal and severely punishes good people who are responsible hard-working honest and thrifty…and their children…and their children’s children. And it lets the perps off with a windfall encouraging future crime.
The insane expansion of our already confidence-killing national debt with all these Treasury bond issues that will make up the “stimulus” (even if it goes to warm fuzzy infrastructure repair and “green” jobs) will do nothing but dig us in deeper! These frauds are trying to prop-up the gigantic fraud they just perpetrated BY CONTRACTING A NEW PACKAGE OF EVEN MORE INSANE DEBT!
How dumb does one have to be not to see that, if the crux of the problem was that you got in way over your head with unpayable debts, CONTRACTING MORE DEBT AND ARTIFICIALLY PREVENTING DEFLATION CANNOT BUT PROLONG AND WORSEN THE PROBLEM. America isn’t good for what they already borrowed. We are essentially greenmailing the world into expanding the untenable insanity so that the perps (big business) can avoid being called to account for their insane fraudulent and deeply irresponsible economic scam.
NO STIMULUS! NO BAILOUTS!
WE MUST TAKE THE CONSEQUENCES OF HAVING STUPIDLY – POLITICALLY AND LEGISLATIVELY – ALLOWED THEIR FRAUD OR WE WILL NEVER LEARN TO BE VIGILANT AGAINST THIS KIND OF GLOBAL CRIME AND WE WILL NEVER LEARN TO DEFEND OURSELVES AS A SOCIETY AGAINST PLANETARY FINANCIAL FRAUDS.
THAT WOULD BE JUST FINE WITH THE CHINESE BANKERS WHO WILL BUY THE PROPERTY YOU WORKED A LIFETIME TO OWN AT PENNIES ON THE DOLLAR. WE MUST DEMAND THE RE-INSTITUTION THE CYNICALLY REPEALED LAWS THAT HAD PROTECTED US AGAINST GIGANTIC FINANCIAL FRAUD EVER SINCE THE LAST DEPRESSION!
MORE HIGH-LEVEL ANTI-FRAUD REGULATION AND ENFORCEMENT – NOT IMMORAL BAILOUTS AND INSANE DEBT-FINANCED CHEATER’S “STIMULUS” THAT CANNOT BENEFIT US! INSTITUTE SEVERE REGULATION ON ALL FINANCIAL DERIVATIVES! THINK MAN! THEIR STORY TRULY DOESN’T ADD UP.Click here for reuse options!
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