$700 BILLION BAILOUT PASSED Obama & McCain's Support Betrays U.S. Citizens by James Jaeger
As of today, both houses of Congress have now passed the $700 billion bailout bill (aka, "rescue plan" if you are an apologist of the rape-and-pillage system).
Since both would-be presidential candidates, Barack Obama and John McCain, strongly advocated passage of this bill, it should now be completely apparent that these two "choices" are just two sides of the same coin. These guys both work for the SYSTEM -- the Federal Reserve System. Their support for this, the most monstrous and flagrant bailout in U.S. history, means they have betrayed ordinary U.S. Citizens in the long-term.
What does it mean to work for "the system" and how will this affect you as well as the advancement of science and technology in the coming years?(1)
When you hear rhetoric like: "the entire financial system is in trouble" or "a systemic failure on Wall Street will lead to serious problems on Main Street" what these talking heads are referring to, without actually using the words, is the central banking system in the U.S., a banking system that issues and "manages" the world's reserve currency. This central banking system is the Federal Reserve System.
Why is it so important to safeguard and bail this system out no matter what? It's vital because all of the corporate world relies on the "liquidity" produced by the fiat money generated by the Federal Reserve Bank. The Federal Reserve Bank is the lender of last resort (in a similar way J.P. Morgan was before he died in 1913, the same year the Fed and income tax were instated). This means, when people fail to service their mortgage debt, these mortgages lose value and the Fed bails them out, directly or indirectly, overtly or covertly via the Congress. Such "sub-prime" mortgages become known as "toxic assets." A toxic asset on the balance sheet of an investment bank or commercial bank causes the stock of those entities depreciate. When such an entity loses stock value, it loses liquidity from two points of view, one, people only want to sell the entity's stock (not buy it) and two, the entity itself can't margin its assets for loans. In other words, the entity can't borrow against its asset's. An entity that can neither BORROW or SELL is said to be ILLIQUID, not necessarily bankrupt.
So why did both Obama and McCain vote to have the government bail out the financial entities that have become illiquid? The answer is simple. If these entities are able to off-load their bad mortgages, their "toxic paper," on to the public at prices artificially ABOVE market prices, they won't have to be subjected to the free market -- you know the same fair and free market that's so wonderful for international trade under GATT, NAFTA and WTO rules.
The entire essence of this $700 billion bailout is that the public will be required, through their government, to buy the "toxic paper" at ABOVE-market prices. In other words, the government will hold the bad mortgages until the stock market comes back, hope that the "sub-prime" borrowers are now doing better financially and are thus more able to service their debt. The gov will then attempt to sell this "not-as-toxic paper" back into the market or to whoever wants to buy it. This may work, but the scheme is known as PRICE FIXING. The only way the market can come back is if the gov FIXES THE PRICE of the toxic paper above market. A mortgage that isn't being paid is worth ZERO. Thus if the gov pays ANYTHING above ZERO it's overpaying the Banks for their toxic mortgages. This is exactly what the banks want, they WANT to sell their CRAP to the gov and its ignorant cits, so they can SURVIVE and walk away from the very mess they created and hope the markets come back in the future so they once again rise up and victimize the public. This is what is known as fascist capitalism.
In a free market economy -- one "capitalists" delude themselves into believing they live in -- the toxic paper-bearing financial entities would have had to file bankruptcy when their stock approached zero. Their stock would approach zero because investors, the "market," would not have enough confidence in them to purchase any more of their stock. The market would be right, because the MARKET IS ALWAYS RIGHT. These financial intuitions thus DESERVE to go bankrupt because they used unlimited FIAT MONEY to eke out every possible borrower -- whether qualified or "sub prime" -- to sell a loan to. This is unadulterated greed and business imprudence. This is grounds for bankruptcy. A truly free-market economy would never have allowed this. But moron-Democrats simply don't get this and thus call for more "regulation" as their naive "solution." So once again, we have the moron-Democrats pitted against the fascist, greedy-Republicans.
And your presidential candidates are part of the scam. They don't CARE about greed or imprudence, because they work for the fascist corporate SYSTEM and the cultural Marxists who have infiltrated the media and educational system -- not you, the taxpaying U.S. CITIZEN. The DemGOPs work for the corporate plutocracy that lobbied to pay for their presidential campaigns and mainstream TV propaganda you cits have bought hook, line and sinker.
Question: So were will the government get the $700 billion when income taxes aren't even due for at least another 6 months?
Answer: it will monetize debt.
In other words, the Congress will issue more government treasuries (DEBT) and try to sell them to whoever wants them. Since the foreign investors (china, Japan, UK, etc.) are now leery of the almost $10 trillion in National Debt on the books of the United States, they will not be so eager to purchase yet more. Thus they may only buy 30 - 40 percent of the bonds, leaving the Federal Reserve to buy the other 60 - 70 percent. But where will the Fed get the money for the balance? Simple, it will print it up out of thin air. This is known as "monetizing debt" -- turning debt into money.
As this newly monetized debt (known as "fiat money") rushes into the veins of the fiat money-addicted U.S. economy, it will act as a "stimulus" and give relief . . . for a while. Just like a heroin addict gets relief when he injects more drugs into his veins. Then, as the new fiat money bids up prices, we will all feel its effects as so-called inflation. The new money injected by the Fed will now compete with the money already in circulation. More dollars will be chasing fewer goods, thus the "price" of goods will rise. But your wages will not rise (as quickly) thus you will be able to purchase less food and vital living supplies per dollar as time goes on. Your purchasing power will thus have been undermined by Obama and McCain's $700 billion "rescue" of the economy and you may end up unemployed. Obama and McCain have thus raped and robbed you while supporting their buddies in Washington and the international corporate world that meets at Davos once every year. If you vote for either of these two scum, you are thus attempting to elect an enemy of the People to the highest office in the Land. Isn't that kind of stupid?
As Ron Paul warns, if inflation becomes severe or runaway, it will destroy the dollar. The destruction of the dollar would make the bankruptsy of a few, or even a lot of, banks INSIGNIFICANT by compairison.(2) If this happens, Obama and McCain will be duplicit in causing the total collapse of the U.S. economic system and possibly the world's economic system. Some say, this is the intent of the Globalists. To destroy the dollar and the US financial system so they can impose a one-world fiat currency. Never accept it, if it's a fiat currency, otherwise you will be setting up the exact same "system" that just, and has always, failed.
And YOU want one of THESE two dolts to be President?
The only person who was running for President that has a grasp of this situation, and who has the courage to speak out about it, is Ron Paul. But many of you have chosen to believe the mainstream media's propaganda and disposed of him. For those of you who have done this, I have no sympathy if we eventually experience a total meltdown, and frankly, I hope you get HURT enough to sit down and actually READ the Constitution.
(1) To the degree there are financial problems new technology will not get funded. Already the government's science and technology budget is minuscule.
(2) Ron Paul's recent TV appearances warning about the liabilities of failing to follow Constitutional principles and allow total free-market capitalism to do its job purging the economy of profligate corporations and banks are at:
Ron Paul on CNN discussing the current financial debacle:
Ron Paul on Glenn Beck discussing the Fed:
Ron Paul discusses Banking Committee session with Bernanke on Fox News:
Ron Paul discussed bailouts with a smug Wolf Blitzer:
Ron Paul schools Bernanke on Fed and Great Depression:
Ron Paul talks about the Fed and his recent discussion with Bernanke:
Ron Paul discusses Federal Reserve in documentary film entitled, FIAT EMPIRE:
03 October 2008
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Don't forget to watch FIAT EMPIRE - Why the Federal Reserve Violates the U.S. Constitution so you will have a better understanding of what we believe fuels most of the problems under study by the Jaeger Research Institute. Also, if you support a constitutional republic engaged in free-market capitalism, you might be interested in watching the progress of our current film production, ORIGINAL INTENT, at http://www.OriginalIntentUSA.org or http://www.FiatEmpire.com/producers
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