reply to post by Rockpuck
If this was engineered it's been in the works for over a decade. What would be the motive?
I posted the other day on this subject. It seems to me that the main reasons for deliberately sinking the economy would be the same old motivators
that politicians and bureaucrats have always loved. Money and Power.
I think that it is possible that the bureaucrats in DC recognized that our taxation levels are very near the optimum level. So, it would be very
difficult to increase revenues by raising taxes. So, the Federal Budget funds that drive all programs are stagnated around 2.5 Trillion per year.
On the other hand, the US economy is the largest and richest on earth. Our GNP is around 40 Trillion per year, now that is a much bigger pool of money
to play with. If the US Government could gain access to a majority of the economic drivers, (ie banks, investment houses, major industries) then they
could control the entire economy(Power) and tap into the wealth.(Money)
So, how could this be done?
First, they passed laws requiring the financial institutions to make sub-prime loans. Loans that they knew would drive up the number of defaults.
Sooner or later, this would cause a lending crisis. They could actually predict when this crisis might occure.
Second, once the lending crisis was in full swing, they knew that the financial institutions would call on the government to cover the losses. These
were Federal Guaranteed Loans after all.
Third, they knew that the lending institutions would tighten their lending practices after the crisis began. This would put pressure on the money
supply at the Federal Reserve Bank. So, money would become tighter. This tight money policy would put pressure on businesses large and small. These
businesses rely on short term loans to cover slow periods or payroll shortfalls.
Fourth, this next point is the lynch pin. At the critical moment, the US Government goes to the Federal Reserve Bank and borrows 2 Trillion dollars.
This has the effect of drying up the money supply that would have been available to the banks. The banks can't get short term money, so they can't
make short term loans. So, this deepens the credit crisis.
The second effect is that it gives the US Government ready cash that they can use to "come to the rescue". A rescue that was made necessary by their
borrowing of 2 Trillion dollars.
Did you wonder where the government suddenly got the money to squander in the "Bailout Bill"? Well, they borrowed it, from the Federal Reserve Bank.
This is the smoking gun that this whole thing was engineered. They borrowed the money in July, months before things got really dicey.
Fifth, they now have the cash to "bailout the economy". With the economy crashing, everyone is demanding that the government "do something". So
who can blame them for "doing something"?
So, the government now cherry picks the very best banks, investment houses, insurance companies, and corporations to bailout. They don't just give
these institutions money, they demand a controlling interest in return.
In one bold move, the government takes control of the US Economy and their "shares" in these companies will pay dividends for years to come. So now
the government has the very best of both worlds. They can collect taxes from the citizens and corporations, just like they always did, but they can
also supplement that revenue with dividends from the industries that they now control.
If this isn't bad enough, let me ruin your day a little further.
The US Government is the largest customer for many of the institutions that they now control. When it comes time for the government to award contracts
for this or that. Who do you think is going to get those contracts? You guessed it, the corporations that the government has a controlling interest
in, that's who. So much for competition and the bidding process.
Also, it used to be that when Congress wanted to implement some new control over business, they would have to pass a bill and get the President to
sign it. Well, they don't need to do that anymore. Now Congress can send their representative directly to the board meetings and dictate their new
policy. No law required. This is ultimate power.
One last thing. Let's say that you are a manager or an exec with one of these controlled corporations. What happens to you if you are a member of the
wrong political party? What happens if you step out of line? What happens if you give the wrong campaign contribution? That's right, you're now
Keep your eyes open folks, this is going to get stranger and stranger. This is new territory for the US and I don't think that any of us can predict
where this will go.