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GreenScam: How Tax Favored Foundations Get Taxpayers to Bend Over
We recall commenting last Fall that solving a problem created by too much debt with yet more debt, made as much sense as throwing gasoline and homes on a fire.
Not long after that, a bank razed 16 new homes rather than foreclose on them:
http://online.wsj.com/article/SB124148169574985359.html
The cost of government bailouts crowds out the private sector economy and increases the cost of living, which some people confuse with inflation.
This happened via TARP with the Federal Reserve Bank paying higher interest rates on bank reserves and the Treasury paying higher interest rates on Treasuries, than banks were willing to risk making loans to their usual customers.
The government lender of last resort became the only lender, and it was not for productive purposes.
Government demands, while citizens supply.
It is private capital, enterprise and labour that drive markets and deliver the goods in the long run.
It is not unproductive government, which borrows, increases costs, interference and taxes.
We noted then the Reconstruction Finance Corporation, often cited as the inspiring rationale for TARP, did not begin in 1930 a year after the 1929 Crash like TARP.
Hoover’s RFC in fact began in 1932 at the bottom of the market, three years after the Crash.
http://en.wikipedia.org/wiki/Reconstruction_Finance_Corporation
Of note to gold bugs, the unconstitutional FDR gold recall did not occur until 1933, the fourth year after the Crash.
The 69% Dollar devaluation caused 7% consumer inflation the year it happened, and none thereafter in a deflation.
May 26th, 2010 at 2:40 pm
A theory like this one seems impossible to fathom. Is the government doing whatever is necessary to maintain calm among the population after these speculations aboutthe end of the world? If this theory is accurate, we wonder who the people who are on the list will be.