Sunday, October 25, 2009

And Speaking of Economics For Dummies

With a hat tip to Small Dead Animals and tipster Kevin B.

Friday afternoon The US FDIC (Federal Deposit Insurance Corp) a government agency that is supposed to be responsible for helping to insure that small depositors can feel safe about their money in US banks. Banks pay a fee (insurance premium) so the FDIC has a fund to supply up to a fixed amount. The current rules allow for $100,000 per account and for retirement savings (IRAs) $250,000.

Just to provide a little bit of history on the FDIC .... they are broke. They do not have the funds to cover their current obligations and have been over extended since mid year (2009).

But to listen to FDIC Chairman Shiela C. Bair tell it, they have a magic money tree to go to.

Now in case this sounds reasonable to you let's just back up and take a broader look at the situation.

There has never been a case of any government being able to print money without the consequence of devaluing the currency. Neither can any government, person or business borrow it's way out of debt.

Not ever not the Phoenicians, not the Egyptians not Rome, not any European nation, not any third world kleptocracy.

The more money a government prints the less it is worth. Period.

Now what this tool Shiela C. Bair is telling us is that she has a magic way of protecting people's money while borrowing and while forcing the very banks that are suffering financial harm to accelerate the process and by forcing government to print money to pay for her plans.

None of these things have ever worked in the past and none ever will.

The consequences of continuing on this path are worthless money (hyper-inflation), unrecoverable debt (bankruptcy) and complete economic failure (catastrophe).

Shiela C. Bair displays a complete ignorance of history and economic reality and yet political masters have placed her in charge of the financial security of millions.

The USA is in a deep and dangerous place ( and the rest of us as well), thanks to those who would allow this to go on.


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Anonymous greyburr said...

Just watched this over at liberalguy ,seems to fit in with what you are saying,in fact even more frightening

10/25/2009 6:24 p.m.  
Blogger OMMAG said...

It is indeed

10/25/2009 8:08 p.m.  
Blogger OMMAG said...

Calente is an ass .... Gun Toting Far right indeed.
Racist...rascism .... indeed.

What a tool.

10/25/2009 8:20 p.m.  

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