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Do you realize just how messed up this is?
I know the bailout for the big banks is old news, but it continues to rankle and I feel compelled to try and point just how crazy the whole setup is.
Here’s the thing. It’s not just about the bailouts. It’s about the whole system of money creation. When the Fed decides to inject liquidity into the economy, the money can come from a number of sources… primarily taxes, borrowed, or the printing press. All three directly or indirectly amount to the same place – the pockets of those that actually pay taxes.
Ok, so after picking our pockets, what happens to the money? They give it to the banks. What do the banks do with it? They LOAN it to the public. However when I say ‘public’ we’re actually talking about mainly large corporations. That’s in a perfect world. A lot of the time they simply loan it back to the Fed and collect a a nice ‘little’ return on the interest, or they buy treasuries – same deal. Either way, WE are forced to give them money which, if things work the way they are supposed to, they then LOAN back to us and charge us interest for the privilege.
Basically the government takes our money at gunpoint and then uses it to enrich the banks and create more debt for which we, the original source of the money, are ultimately responsible. I don’t know how to make the absurdity of this any clearer. If they really feel compelled to go out and print or borrow money at OUR expense supposedly for OUR benefit then they would do better if they stood on the street corner and handed out $100 bills – or if Helicopter Ben literally flew around dumping billions on the populace. At least then the money would be injected directly into the economy without creating more debt. But of course that would side step the bankers.
