We as a society must stop pretending. Most of us think that we still have money in the bank to protect, so we go along with the game of extend and pretend. For some of us, the game has already ended. The rapacious zero interest rate policy that I call Bernankecide has already robbed millions of savers of their life savings. This is the reality that has yet to hit home for many Americans who are content to wallow in the status quo. Unfortunately, the longer it takes for them to wake up, the worse their, and our, fate will be.
It is not just “money to protect.” It is also unpayable political promises, most-particularly the concept of unlimited health care spending for seniors. The tab for this is somewhere around $50 – 70 trillion dollars. We do not have it, we cannot acquire it, and thus it will not be paid. This is not subject to any sort of honest debate.
My mother and millions of other senior citizens are among the victims of the game that policy makers and those who empower them are playing. Their life savings are gone because Bernankecide, the financial genocide of the elderly, forced them to spend their principal. Now the government is indirectly confiscating 8% of my income because I must support my mother. That percentage is likely to grow as her health deteriorates.
Or worse, take “more risk.” This of course means you might earn a return, but you might also make a loss. The former is ok, the latter ruinous. Neither should be happening but both are, and we the people are to blame. We vote for people who promise us ponies, whether we can fund them or not. But we also demand “cheap” credit which inherently means we will subsidize losses, since nobody in private business will intentionally lend at a loss.
Millions of other boomers are in the same boat. They are forced to pay this immoral hidden tax because Ben Bernanke decided that the innocent must pay for the sins of the guilty. While Bernanke’s ZIRP goes on allowing the banksters to continue to collect their fat bonuses, it steals the savings of millions of Americans, eliminates their disposable income, and cuts the spending power of millions of others who must now support those rendered destitute. The guilty benefit, and the innocent are punished.
Bernanke knows that, yet he continues to side with the criminal bankers in support of the financial genocide of the super elderly, and their children, the baby boomers who must increasingly support them.
Yep. Those who did the right thing are being destroyed. I see it daily around me, and yet I also see rampant consumerism still running amok. The drunks are still boozing it up; we the people continue to play the “aspirational consumption” game even though we cannot cash the checks we write. Then, when the chickens come home to roost, we watch as the banksters get bailed out and continue on their way, and we refuse to rise, in no small part because if we do the credit cards will be cut off and we refuse to accept that just as a drug habit requires both a pusher and an abuser for the drugs to get consumed, credit abuse requires both a borrower and lender.
Among the OWS protesters are those calling for forgiveness of student loans. They may be acting in their own self interest, but it is a just cause, and must be a part of the cleansing of the system. The student loan thing is a long running racket that preys on the inexperience of children and young people just starting out in life.
Here I disagree. Students should be able to go bankrupt, not have loans forgiven. There must be a consequence for both borrower and lender. Being stupid must come with consequences. The only way one learns is via the reward and pain system – you are rewarded for doing smart things, and suffer pain for doing dumb ones. Bankruptcy is pain. It’s not intractable pain, but it’s pain – it cuts off or severely raises the price of credit for some time.
The student loans are the tip of the iceberg. Bankers have made and sold trillions of dollars worth of loans that they knew, or should have known, could not be repaid. That’s fraud. It must be prosecuted. Today, central bankers and governments are refunding those loans, knowing that a substantial portion of them cannot be repaid. Worse, they are buying them above par because of today’s fake low interest rates. Then they guarantee them by obligating us and future generations to repay them. This is criminal.
Yes it is. And the stooges such as Obama, Geithner and the rest (including Congress) are the reason it’s happening. Were any of these people raise their hand and say “no more damnit!” it would end tomorrow.
Read the rest folks. It’s worth it. Lee points out what I’ve been saying for a long time: We are quickly coming to the end of the line for this process to be carried out and remedied via reformation – that is, peaceful, lawful means.
The other possibilities are all ugly, and they’re approaching – quickly.