Robbing Peter to pay Paul
FDIC is seeking a bailout from the banks. FDIC stands for Federal Deposit Insurance Corporation. It is an organization that was created in 1933 to guarantee the safety of deposits in member banks. Currently they ensure up to a value of $250,000 per account. The FDIC insures deposits at 8,246 institutions with $13.5 trillion in assets.
According to Associated Press this week, the FDIC is seeking some help from the banks because they are having trouble insuring some, most, or all of their deposit accounts. There is something that smells terribly wrong with this.
http://news.yahoo.com/s/ap/20090922/ap_on_bi_ge/us_banks_fdic_bailout
Consider the following scenero: Junior asks Dad if he can borrow five bucks. Dad says, “ok” and then turns around and asks if he can borrow five bucks from Junior so that he can loan it to Junior. Hmmmm…? The government is probably going to ask Junior for six bucks so that he can make a buck on the deal and then turn around and charge Junior two more dollars in interest for the loan. In the mean time, since Dad is in charge, he will refuse to pay any interest that Junior may charge for the six dollar loan simply because he can. It sounds a lot like Junior would be better off loaning the money to himself or going without.
This FDIC thing also makes me think of the things that sent Bernie Madoff to prison…
Consider the following recent events in American History
- Government insures bank deposits with FDIC
- Banks deposit money in other banks and financial institutions so that it is insured by you and me
- Government pressures banks to make bad housing loans
- Against better financial judgement, Banks make the loans and they go into default
- Housing market goes into decline and George Bush borrows $500 Billion from China to stimulate the economy
- Banks need more money to avoid financial collapse
- Obama creates another stimulus package ($787 Billion) by printing money and borrowing from the future
- Some banks collapse anyway and the government absorbs them
- FDIC begins to run low
- Government borrows ($100 Billion) from the banks that they are also lending to
What comes next?
The government will raise taxes to pay off the debt incurred from all the borrowed money
- $500 Billion from China
- $787 Billion from the future and from printing
- $100 Billion from the banks
Now that the economy has been flooded with money, the value of the dollar drops like a stone. What will happen if and when the government defaults on all of this borrowed money? This does not take into account the fact that they are considering borrowing again for the Health care bill.
Answer: They will raise taxes.
What happens if they are not able to generate enough revenue through taxation due to the slowing economy, unemployment and other factors?
Answer: Someone is going to end up OWNING someone else.
The question then is, who will be the owner and who will be the slave?
What is the likelyhood that the Obama administration is going to let the selfish capitalists run the economy? Zero.
What is the likelihood that the Obama administration is going to listen to the American Tax Payer from which a good chunk of all this money was stolen? Zero. After all, they have already demonstrated they are willing to elect someone with zero experience who is openly not who or what he says he is.
All that leaves is China. What is the likelihood that they will be running the show? In some ways, they already are.
Here is what is coming: socialism/communism followed by marshal law and then destruction.