| Can the government really save the banking system? | | | | taxpayers, while receiving none of the benefits of |
| What does it mean that the banks have such low | | | | the system, will be left on the hook. |
| stock prices right now? What should ordinary people | | | | The real danger is if the government takes on so |
| like us do to protect ourselves against the | | | | much bad banking debt (from defaulted subprime |
| government's destructive policies? These are just a | | | | mortgages, foreclosed homes, credit card |
| few of the questions that people are asking | | | | delinquencies, and so on) that it loses its credit rating. |
| themselves as they watch the US economy slide into | | | | US government debt has enjoyed a AAA rating from |
| a depression. | | | | the credit rating agencies, but this may change if the |
| The fact that banks have very low stock prices now | | | | government has to create so much debt in order to |
| compared to what they were just a few years ago | | | | bail out the financial sector of the economy. |
| proves how little trust there is in the American | | | | Through its inflationary policies, government can |
| banking system. The banks took advantage of their | | | | wreck vast areas of the world. Weimar Republic |
| creative financing schemes and wasted all of their | | | | Germany, the US during the Revolutionary War, and |
| trust around the world on subprime mortgages and | | | | Zimbabwe today are all examples of how vast |
| securities fraud. Now that so much corruption has | | | | money creation impoverishes a people. The role of |
| leaked out, there is no private capital available for | | | | money in an economy is too important to leave in |
| these companies. | | | | the hands of politicians, who too often abuse the |
| So the government has stepped in to begin | | | | printing press. |
| nationalizing the banking system. Although politicians | | | | If this happens in America, the dollar's current position |
| state that this is the last best hope to prevent a | | | | as the world reserve currency will be threatened. As |
| complete meltdown and save the world, and that | | | | a result of this, the American empire itself may be |
| they are only doing this reluctantly, government has | | | | threatened, as the military and the dollar act in |
| always wanted to take more power. It already has | | | | conjunction to keep both the most powerful in the |
| control over the central bank through the Federal | | | | world. Lack of money is already turning America into |
| Reserve. Now it is taking ownership of the banks, | | | | a depression-era police state in some localities |
| where most of the money in the economy is | | | | throughout the country. |
| created. | | | | So what is the solution? In effect, families must |
| Nationalizing the banking system through the TARP | | | | become their own central banks and leave behind |
| and other methods is not so much an indication of | | | | their blind faith in the dollar and the Federal Reserve. |
| socialism as it is of fascism in America. The banks will | | | | People can purchase small quantities of gold, silver, |
| not be owned by "the people," but instead seem to | | | | and other hard assets to protect against a |
| be entering into partnerships with government, | | | | government that has so far created nearly $8 trillion |
| where bureaucrats will place restrictions on salaries, | | | | to bail out the banks. Although asset prices are falling |
| bonuses, and dividends, while dictating how the | | | | now, the overreaction to deflation will lead to |
| companies are run and who gets loans. The | | | | hyperinflation down the road. |