Covid-19 bailout is officially the biggest bailout in history, reaching the point of bailouts for everyone
Article from December 14, 2009, Eerily Accurate
According to ZeroHedge, “While nobody knows when the US economy will fully recover from the coronacrisis pandemic, what the economy will look like, or where the S&P will be one year from now, we do know how much money the current bailout has cost. And, at over $10 trillion to date – and counting – the Covid-19 bailout is now officially the biggest bailout in history. We reached the point of bailouts for everyone.
Deutsche Bank’s Jim Reid has put together the following chart graphing the history of global moral hazard all large bailouts/interventions, covering both government and central bank moves, seen each year since 1970 in US inflation adjusted terms.”
Talk about moral hazard. 4.4 million people apply for unemployment, taking the 5-week total to more than 26 million…and markets keep rising, although they gave up most of today’s gains. We can assume we’re witnessing a complete disconnect between Wall Street and Main Street.
Bailouts for Everyone
When I wrote the following article on December 14, 2009, I never dreamed it would all come true. For your benefit, I added some updates.
Easing concerns over global credit problems and more signs of corporate deal-making are giving stocks a moderate boost. Major stock indexes rose less than 1 percent in early afternoon trading Monday following news that Abu Dhabi had extended $10 billion to Dubai to help the Middle Eastern city-state stay afloat.
Why should only the privileged few receive bailouts? Let’s take this bailout nonsense to its illogical conclusion. All the major nations’ governments should get together and set up a special bank to dispense cash or bank credits to anyone who can’t meet their financial obligations. On second thought, the cost of the monstrous bureaucracy required to oversee and institute this money machine would be prohibitive.
Note: Well, they figured a way to do it. And what’s nice, you can hit the ‘0 key’ as often as needed.
Bernanke’s Helicopter Money – Bailouts for Everyone?
Let’s think about this a little more. I have an idea. Bernanke’s helicopters dropping an unlimited amount of $100 bills in thousands of optimum areas could do the trick. I like this idea because it would put in place Darwin’s “survival of the fittest.” You know, in the race to grab as many $100 bills as possible, the ensuing stampedes might kill enough people to actually lower the rate of unemployment.
The more I think about this possible solution, the more viable it sounds. We’d be “killing 2 birds with one stone.” We would experience the “happy” situation of more money competing for goods and services, which would stimulate production and create jobs—along with the fact of fewer people competing for jobs. Gee, this sounds like the perfect “Keynesian” solution to our economic woes.
Note: At the time, I was actually joking. Maybe some of the metaphysicians are correct when they claim reality is an illusion. We’re actually in the Twilight Zone, or maybe we really exist in “The Matrix…a dystopian future in which humanity is unknowingly trapped inside a simulated reality, the Matrix, created by intelligent machines to distract humans while using their bodies as an energy source. Oh well, we must face the fact that reality is what it is…even when it seems like a nightmare.
Isn’t it Time We Faced Reality?
You might think the above is not only completely ridiculous—but also highly destructive. Well, I have news for you. It isn’t any more destructive than the political and financial establishment’s economic policies of the past 100 years. In fact, it conforms to their delusional way of “solving” economic problems.
Perpetrators of Economic Mayhem and Misery
These perpetrators of economic mayhem and misery run deficits of more than $1.4 trillion per year, with total national debt of over $11 trillion. If you include all the unfunded liabilities such as Social Security, Medicare, federal retirement programs and prescription drug benefits, the national debt soars to the nauseating height of somewhere around $100 trillion.
Note: It looks like the 2020 deficit will reach more than $4 trillion, the national debt $24 trillion. We get to witness an acceleration to catastrophe.
We must accept the fact that it’s doubtful anything positive can result from excessive debt that greatly increases every second of the day. Actually, we should expect to receive a visit from The “Four Horsemen of the Apocalypse,” *Conquest, War, Famine, and Death because that’s what greed and ignorance on a massive scale create.
*Some interpretations replace Conquest with Pestilence.
How about the bailout swindles? What about interest rates close to 0%? Does anyone in their right mind cling to the illusion that the dollar remains strong when the Fed is dedicated to creating an unlimited amount of them?
Note: History informs us that illusions die hard.
America’s Economic Power Fades Away
Do you want to know why America’s economic power relentlessly fades away at a terrifying pace? According to the Daily Reckoning, here’s the reason the future belongs elsewhere. “The next phase of global development seems to favor the new, emerging markets. They don’t have the legacy costs and corruptions of mature industrial societies. No giant military establishments. Minimal social security and public health care systems. Smaller welfare, education and health bureaucracies. Fewer lobbyists and entrenched special interests. In short, fewer parasites.”
Note: An international monetary collapse appears inevitable and bailouts for everyone won’t save it.
In other words, the parasitical political and financial establishment continues to cannibalize our fragile economic system. Tragically, most Americans passively accept the gluttonous eating away of their wealth and prosperity—not to mention the erosion of their personal liberty and freedom.
Of course, I believe the day arrives in the not too distant future when the developing nations develop amnesia and forget what made them strong and prosperous—finally yielding to the temptation of big government and the Welfare State—at least that’s what the lessons of history indicate will happen.
Conclusion
When someone asked the great economist Ludwig von Mises what the government should do about the depression (the depression of the ’30s), it is reported he said “nothing—a lot sooner.” Of course, governments never follow sound economic principles. Instead, they hamper the efficiency of the marketplace, eventually causing market chaos.
Let’s face the truth about bailouts. They are a deadly poison to our economy and the future of the dollar. It is possible that this inflationary money could transform the deflationary collapse into a hyperinflationary collapse—turning the dollar into “toilet paper” currency—permanently wrecking our economic system.
Second Conclusion
Unbelievable! I wish events would have proved the above article wrong. Think about a world where free enterprise reigns supreme, and our personal liberty and economic freedom continually expands. Instead, we wake up every morning to the nightmare of a dystopian society created by the Elite and its minions…the political and financial establishment. How long are we going to put up with the smackdown of our individual rights?
It’s time we stand up and defend our personal liberty and economic freedom. That’s what the Conservative Party USA dedicates its efforts to.
We need supporters who stay strong, determined not to succumb to a Totalitarian (Technocracy) State. For your benefit, we offer you the free no-obligation eBook The Conservative Warrior’s Handbook. You will find plenty of intellectual and emotional “ammo” to help you during these difficult times.
In addition, you can access the Political Action Course.
For important information visit our website.
Robert Meyer
National Managing Editor
Conservative Party USA
