Go to links

Thursday, December 20, 2007

Foreclosures: More Collateral Damage in the GWOT

Jacob G. Hornberger explains in "Mussolini and the Mortgage Bailout"
at http://www.fff.org/blog/jghblog2007-12-06.asp.


Ludwig von Mises pointed out that one government intervention inevitably leads to more interventions. Here we have a good example of that phenomenon. Bush's interventionism in overseas affairs leads to a mortgage crisis at home, which then leads to Mussolini-type partnerships with the private sector designed to "encourage" the financial institutions to not enforce the terms of their contracts. And it's all designed to look "voluntary."

Of course, all that federal debt, including the monies owed to the Chinese communists, must be paid back. Ordinarily, that would mean higher taxes coming down the pike. Again, however, Bush has repeatedly told people that he's a "no-new-taxes" type of guy.

That's where the Federal Reserve has been so accommodating. It simply prints the money that is needed to accommodate the debt. That's why the value of the dollar has plummeted some 50 percent in the last 4 or 5 years. That is what is called "devaluation," at least when Third World regimes do it. It involves a debasing of the currency in order to pay the ever-rising bills of the government.

The average American has no idea what it being done to him because it's a process that people are not taught in their economics and civics classes in high school and college.


Post a Comment

Links to this post:

Create a Link

<< Home