$1 Trillion Financial Industry Bailout
There are plans for a $1 trillion Federal government bailout of the financial industry. A lot of those shaky subprime mortgage bonds will be directly purchased by the Federal government. The Federal government will pay a lot more than current market value for these bonds, propping up the price. This will improve the balance sheet of many large banks, so they may continue issuing loans for other purposes. With debt-based money, everyone is dependent on large banks to keep making loans so that the money supply doesn't crash in hyperdeflation.
The bailout won't be paid via a tax hike. It will be paid by increasing the national debt. The cost of the bailout will be paid by inflation.
A $1 trillion bailout will increase the size of the national debt by 10% and the size of the money supply by more than 10%.
Instead of paying $1 trillion to the financial industry, $3000 could be directly given to each American instead. It would have the same overall effect on the economy. The bailout is exactly the same as if $3000 were stolen from every American and given to a handful of financial industry insiders.
When deficit spending is paid by inflation, it's not as outrageous as if it's paid by a tax hike. The overall effect is the same.
Anybody who knew about this bailout ahead of time could have profited immensely. They could have bought the shaky subprime mortgage bonds before the bailout was announced. Now, they can sell those bonds back to the Federal government for a nice profit. As usual, politically connected insiders profit at the expense of everyone else. Only politically connected insiders may do this, because they need to make sure the bonds they bought qualify for the bailout.
Due to a defective monetary system and the Compound Interest Paradox, the Federal government has *NO CHOICE* but to bail out the financial industry. If there were no bailout, then the entire monetary system would unravel as large banks are forced into bankruptcy and they're unable to issue new loans to keep the money supply up.
This is hyped as a "100 year event", but such a bailout was also necessary in the Savings and Loan crisis in the 1980s. The rules of the monetary system guarantee that such a bailout is periodically needed.
The profits of large "too big to fail" banks are guaranteed by the rules of the monetary system. Most of these profits are paid to insiders as salaries and bonuses. An individual cannot get a slice of this subsidy by purchasing shares of financial corporations. Only insiders may loot and pillage, backed by the full power of the State. Even if a non-insider bought a controlling interest in a large bank, a non-insider wouldn't be able to loot and pillage. Most large banks have "poison pill" protections in place, protecting management from a hostile takeover.
The only way to avoid subsidizing financial industry profits is to boycott the Federal Reserve and avoid paying income taxes. If you voluntarily use Federal Reserve Notes as money or voluntarily pay income taxes, then you're a slave.
FSK's Guide to Reality



