It doesn’t take a financial wizard to figure out that the Public’s 80% stake in AIG (American International Group, Inc.) has already spelled trouble for some members of Congress. The question is, how can our legislative leaders in good conscience gain controlling interests in major corporations using public funds and then expect that existing executives will stifle their corporate greed? It is a part of our culture the desire for wealth doesn’t just evaporate because the influx of money came from a public coffer.
Most of us understand that corporate America runs on greed. The famous Wall Street movie speech given by Michael Douglas said it all, “greed is good.” Expecting that partial government ownership in major corporations is going to change that view of the Wall Street view of the world is naïve.
The belief that Politicians are not every bit as greedy as those on Wall Street is another bad assumption to make. If recent events have not proven that to you, then you need to sit down and read about the money that is being spent again, and wonder about where it is all coming from. Moral leadership in my opinion has become an oxymoron.
So what do you do about this mess? Prepare as best you can for the coming inflation. It is the real “bail out.” Once you ramp up a 10% or higher inflation rate, the public debt, corporate debt and all of those billions of dollars squirreled away by individuals in their IRA and savings cash hoards will turn to mush. It gets a lot cheaper to pay back people with dollars that have an evaporating value than to pay them back in today’s dollars.
Economists have talked about the inflation solution being possibly the worst scenario for us, but it seems unlikely at this point that there is another course of action that the government will take. It is easier for government to solve our problems using inflation than it is to force the burden on taxpayers. It is easier to destroy the debt than to pay it.
Some are in tune with what is about to happen, read the blog post on the WorldNetDaily that talks about a recent bill introduced in Montana that is attempting to bring them back to a gold standard. I would expect more people will see where we are headed in the coming months.
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Hi! I’ve just read this article.
You know, we’re experiencing the effects of inflation because of today’s economy. Me and my family are hoping the inflation solution is going to be effective but, if what you’ve said is true… Then I guess there’s no choice but to strive hard for ourselves now until we haven’t run-out of money and hope the government would think about it and do the right solution.
That’s very interesting about Montana trying to get back on the gold standard. I’m not holding my breath, but I’d like to see that considered.
That reminds me of first reading about coming off the gold standard in Robert J. Ringer’s book Restoring The American Dream.
I don’t see how the inflation solution would be the worst scenario for us. Besides.. Even with the inflation solution, I don;t think it will still be help for all of us that much. In my opinion, the damage that has been done is great that that solution won’t be enough.
An msn.com (Jubak’s Journal) article “US Set Stage for Inflation” rambles a bit but it talks about the fact that a combination of high inflation and a weak dollar may be the best way to get us out from under our huge debt, the one that we ran up “fixing” this crisis. Thus, the inflation can indeed solve our debt problem, but there will be a price to pay.
The inflation will increase the price of things like food, imports and gas. So its going to cost us all more to get by. Jubak suggested that people who have money and are saving or investing, keep a portion of their assets in non-dollar based investments.