Tuesday, November 11, 2008

Nothin' But Questions

The big bailout has me wondering. OK, so the U.S. Government is going to throw $700,000,000,000 (look at those zeros!) at some banks, insurance companies, car companies, brothels, and dog grooming businesses. Cool. The first problem, though, is that the USG is broke. No cash on hand and trillions in debt. (Strangely, no one has suggested bailing out the USG.) Solution: Fuckin' finance it! Where to borrow $700b? I doubt that even Gates and Buffett could come up with that kind of dough, so the USG will have to go to a bank. Not a hometown bank, the kind we cash our paychecks at, mind you, but a banker's bank, The Federal Reserve. The Fed is a huge, privately owned bank that doesn't accept deposits from individuals or businesses, but they easily have $700,000,000,000 to loan the USG and lots more to "member" banks. Where did they get that money? And why does the US Treasury print "Federal Reserve Notes"? Does the USG just give all this printed money to the Fed, no strings attached? Who decides how much freshly printed money is to be given?
Then comes the questions about individual responsibility. Should the USG bail out businesses that fail because of their own bad decisions? How about homeowners that borrow more than they can afford? And doesn't anyone in this Goddamn country have two nickels to rub together, besides Gates and Buffet? Whatever happened to "savings" and "planning"? Sigh.

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