State Capitalism Comes to America

State Capitalism Comes to America

www.alternet.org

With George Bush's approval, Treasury Secretary Henry Paulson has tripped across a line of historic dimension. Two less likely agents of change we have seldom seen, but in executing the financial putsch on Fannie Mae and Freddie Mac, they have taken America to a new place.

Other nations have been there. In the early decades of the twentieth century Italy went there when Benito Mussolini initiated his version of state capitalism. He was followed in Germany by Adolf Hitler and national socialism. Both were able to bring about a significant increase in prosperity, however repugnant their other teachings and practices.

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Slowly but surely, the march to fascism continues unabated. Indeed, it is encouraged and cheered on by the citizens as they see their large banking institutions teeter on the brink of collapse. They want government to step in not realizing that the result is a state controlled economy. The author even compares America to fascist Italy and Nazi Germany.

But, is state capitalism a good thing? I say, let the chips fall where they may. And that I hope I am not the chips.

www.alternet.org
(visit the link for the full news article)

Daddy Bush began what Baby Bush finishes..... The "Savings and Loan Bailout" was one of the most dismal days in US trickle down economics.

Either way we are destined to fail.

They couldnt make it work in the private sector and with the government running BILLIONS in debt eatch day, I would say that its only holding back what must come.

The concept behind a pipe bomb is a simple one. When the bomb is set off, the incendiary device in it creates huge pressure due to the heat and gases produced. At some point, this pressure exceeds the ability of the container to contain it, and it explodes. The stronger the container, the more violent the explosion. Pour gasoline on the ground and ignite it, and it will burn rapidly. Put it in an enclosed cylinder or a pipe, and it will ignite with explosive force.

Such is the economy. We're holding the container together with patches to prevent the explosion that is coming. The longer we hold it, the more pressure will build and the worse the resulting explosion will be.

TheRedneck

reply to post by TheComte


First of all when you are dealing with a private lender its like playing blackjack with a broke dealer who could loose his bank and the game is over compairing with a gov owned financial institution as a dealer of a cassino who could loose to all the players and still never go broke and that's what gives the market stablility


In the old traditional 19 and 20th century when the government had surplus over the rest of the world, the gold reserve was valuable enough to secure federal banks, but in todays economy and with the government in trillions in deficit and an unproductive consumer and lazy nation when the tax based gains are declining there is no óther solutions to save the future of the. Nation before we wake up and see the Asian, arabic and European companies took over every existing company here.

I was predicting this long ago and now its happening and its for good of the future of our nation
The other fact is that non of the two institutions could have grown and survived withought the govenment insuring much of their loans paid to the borrowers.

We'll see more of such cases in the future and it'll give the govenment the ability to have a better control on the global markets.

Cyrus

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