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Bush regime rewards incompetent
and dysfunctional corporations
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by Mr. Chuckles, Unknown News May 3, 2008
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"Heat the tar, Jim-Bob. I'll provide the feathers!
And tell Joe-Jim to hold the train, we got him some
customers coming! Them fellers from Washington is
goin' home today..." | |
This week the Federal Reserve opened up its lending to
accept any AAA-rated debt, including bundles student
loans, car loans, etc.
Doug Noland describes this nationalization of
bad/illiquid debt as "validating" existing debt
"structures".
What does that even mean?
It means that the government is fully committed to
financially supporting corporations that have "failed
the test of marketplace viability".
In other words, incompetent and dysfunctional
corporations are being loaned vast sums of money in
order that they can continue in business. Or, to put it
another way, failures are rewarded handsomely by the
Bush regime.
*** *** ***
Part of the Fed's rationale (along with other agents of the Federal
Government) for abandoning capitalist
principles is that these hunormous fuck-up artists would
otherwise be
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The outrage is that "The System" is based on
fraud, and is a form of theft from the American people.
The wealthiest people and corpora-
tions are given "Get out
of jail free cards" and magic "Heads I win, tails you lose"
coins.
They borrow from the government at 2% and lend to
the people at 6%, and if -- even then! -- they manage to
fuck up and lose money, the government stands at the
ready to take taxpayer money and bail them out.
This is
precisely Wealth Redistribu-
tion, but from the
poor to the rich, like an evil Robin Hood.
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forced to sell their illiquid bonds in the
free market. They would not only be required to publicly
confess their enormous mistakes, but the fire sales
of distressed debt would drive down all other similar
debt packages. And all of the other corrupt idiots would
be out of business.
This rationale has a kernel of truth: forced
liquidations create great bargains! Willing buyers would
step forward to buy, and these buyers would be the
smarter, wiser, more competent business people -- who
didn't fall for the recent Ponzi schemes. People who
wanted to buy homes but wisely decided to wait would be
able to afford to do so. The system would cauterize to
infected wounds and heal itself, returning to grow even
stronger under new, wiser management.
*** *** ***
If you're rolling your eyes and groaning as this
Capitalist Dogma is spewed on your computer screen, just
hold on for a bit. Consider:
Think about distressed student debt loan packages. Why
should national policy "validate" student loan bonds as
a concept? Their very existence, and easy access
to government guaranteed loans, created the situation
where for many years tuition costs rose faster than the
inflation rate. Instead of making college affordable the
exact opposite has occurred. Instead of investing in
student education our government is investing in student
loan corporate carpetbaggers!
Similar arguments can be made against "validating" the
existing debt structures of credit card debt, medical
debt, automobile debt, etc. These systems are
dysfunctional in that they create vicious circles:
prices rise because the government supports easy
lending, which maintains a
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high demand for these services even though they have become generally
unaffordable to the average person!! Instead of national
policies supporting wealth creation via old fashioned
Production, our system has devolved into a gigantic
wealth extraction enterprise!
*** *** ***
The outrage is that "The System" is based on
fraud, and is a form of theft from the American people.
The wealthiest people and corporations are given "Get out
of jail free cards" and magic "Heads I win, tails you lose"
coins. They borrow from the government at 2% and lend to
the people at 6%, and if -- even then! -- they manage to
fuck up and lose money, the government stands at the
ready to take taxpayer
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money and bail them out. This is
precisely Wealth Redistribution, but from the
poor to the rich, like an evil Robin Hood.
*** *** ***
Back in the old days, the really old days of Hunter-Gatherers, when the tribe managed to kill a mastodon
everyone in the tribe gorged on the meat. Everyone ate
well during the good times.
Later, when agriculture was invented/discovered, it
became possible to stockpile food so that even during
the bad times everyone ate.
Then Democracy was invented ... and the Kings and Queens
never worked again ... even to this day. ... And later, in 1971, Nixon moved the U.S. from the
gold standard to a pure, paper
currency backed by
nothing but promises to pay. Since then the
purchasing power of a dollar has decreased to a nickel.
And why is that?
Devolution. Inbreeding. Parasitism.
Take, for example, the Bush regime's signature policy,
that the estate tax be permanently repealed. This means
that the wealthy families will be perpetually rich and
never be required to work, ever (or to learn or grow.)
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Imagine a country with countless Paris Hiltons -- millionaires never tested by reality, never forced to dig deep and excel, never offered any incentive to improve.
Which is pretty much what we have today: an upper class of wealthy bunglers who have too much time on their hands and want to run for office.
Like George W. Bush, our inbred, water-brained, devo chuckle-monkey president.
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Imagine a country with countless Paris Hiltons -- millionaires never
tested by reality, never forced to dig deep and excel,
never offered any incentive to improve.
Which is pretty much what we have today: an upper class of wealthy bunglers who have too much time on their hands and want to run for office. Like George W. Bush, our inbred, water-brained, devo chuckle-monkey president. How did we get him? It is as if his father screwed a chimpanzee when the circus came to town! If not for the wealth and power of the Bush-Walker clan, Curious George W. would probably have ended up as an alcoholic, cokehead con-artist used-car salesman with a sub-prime mortgage in foreclosure.
The only good news in all of this is that The System is
not only devolving, it is destroying itself. The big
question remaining is whether we will replace it
with something good and decent.
Will we live up to our
dreams, or will we devolve with our present day masters,
and create a never-ending nightmare?
© by the author.
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