The fallacy of all government bailout programs is the belief that money comes from nowhere and is created without consequence.
In reality, of course, money given to one group (or person) must be paid by another group (or person). Thus:
All financial bailouts are essentially a transfer of wealth from one person to another!
This being true, the very idea that “everybody should be helped by being bailed out” makes no sense. The real question is: WHO should the wealth be confiscated from and WHO should it subsequently be redistributed to?
In the case of banking bailouts, the money is ultimately confiscated from taxpayers (because money creation devalues existing dollars) and redistributed to wealthy bankers who have already lost billions of dollars in other people’s money.
In the case of home mortgage bailouts, the money is confiscated from those who pay their mortgages on time and given to those who bought houses they could not afford (who failed to pay their mortgages).
- A d v e r t i s e m e n t
The key failure of Obama’s monetary policy (and Bush’s, for that matter) is the false belief that money can be created from nothing, without consequence. This is a common fallacy among the wishful thinkers who desperately attempt to deceive themselves into believing that you can get something for nothing.
Therefore, the real question about bailout money today is not whether we should “bail out the homeowners who can’t pay their mortgages,” but rather the more important question: “WHO should we confiscate money from in order to pay for those bailouts?”
New Money Creation = Wealth Confiscation
All money creation is a hidden form of wealth confiscation that steals from both the holders of U.S. dollars and holders of U.S. debt.
There are many forms of wealthy confiscation at work in America today. Taxation is one of them. Despite the hilarious efforts of Sen. Harry Reid who ridiculously argues that the U.S. tax system is “voluntary” (http://www.youtube.com/watch?v=R7mR…), the truth is that taxation is confiscation by force.
If you don’t believe me, just stop paying your taxes and see what happens. When they come to arrest you and throw you in jail, remind the law enforcement authorities that Sen. Harry Reid said the tax system is “voluntary.” Heck, show ’em the video and see if they let you go!