bailout

The Economic Fallacy of Government Intervention with Bailout Money

Thursday, February 19, 2009
by Mike Adams, the Health Ranger
Editor of NaturalNews.com (See all articles...)
Tags: bailout money, health news, Natural News

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(NaturalNews) 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).

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=R7mRSI8yWwg), 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!

If you want to watch a video of an intelligent person talking about the bailout bill, watch this CNN interview with Ron Paul: http://www.youtube.com/watch?v=W49LcbGoCwA

Bailout money ultimately costs the taxpayers

The point in all this is that bailout money isn't free. Somebody foots the bill. And that brings up an important question: Should we actually be giving MORE money to all the people who are best at LOSING money? Because that's what the bailout efforts have accomplished so far.

It seems that it would make more sense to give money to people who know how to PROTECT money; who can invest it and use it to grow businesses and create real jobs (rather than fictitious government jobs paid for by wealth confiscation). Then again, it probably makes the most sense to just avoid bailouts altogether and stop confiscating all this money from people in the first place.

Do not fall for the fallacy that bailout money is free. Someone pays. And if you're working for a living, the sad truth is that ultimately YOU pay.

It is my belief that no nation can survive the financial ignorance of its people.

It's like trying to teach calculus to a cricket...

God bless Ron Paul, but the sad fact is that he, and Peter Schiff, and practically every advocate of Austrian economics is talking at a level of mathematical understanding that is several orders of magnitude beyond the mental grasp of the average American voter.

If you wonder about the future of America, just remember this: The average voter cannot calculate a 15% restaurant tip in their own head! And yet it is their representatives who are voting on trillion-dollar bailouts and global economic policy!

In fact, I'll even say this: It is rare to see a journalist who has the mental capacity to even ask Ron Paul intelligent questions. Watching Ron Paul talk to the average cable news reporter is sort of like imagining Einstein reading bedtime stories to kindergarteners...

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About the author:Mike Adams (aka the "Health Ranger") is the founding editor of NaturalNews.com, the internet's No. 1 natural health news website, now reaching 7 million unique readers a month.

In late 2013, Adams launched the Natural News Forensic Food Lab, where he conducts atomic spectroscopy research into food contaminants using high-end ICP-MS instrumentation. With this research, Adams has made numerous food safety breakthroughs such as revealing rice protein products imported from Asia to be contaminated with toxic heavy metals like lead, cadmium and tungsten. Adams was the first food science researcher to document high levels of tungsten in superfoods. He also discovered over 11 ppm lead in imported mangosteen powder, and led an industry-wide voluntary agreement to limit heavy metals in rice protein products to low levels by July 1, 2015.

In addition to his lab work, Adams is also the (non-paid) executive director of the non-profit Consumer Wellness Center (CWC), an organization that redirects 100% of its donations receipts to grant programs that teach children and women how to grow their own food or vastly improve their nutrition. Click here to see some of the CWC success stories.

With a background in science and software technology, Adams is the original founder of the email newsletter technology company known as Arial Software. Using his technical experience combined with his love for natural health, Adams developed and deployed the content management system currently driving NaturalNews.com. He also engineered the high-level statistical algorithms that power SCIENCE.naturalnews.com, a massive research resource now featuring over 10 million scientific studies.

Adams is well known for his incredibly popular consumer activism video blowing the lid on fake blueberries used throughout the food supply. He has also exposed "strange fibers" found in Chicken McNuggets, fake academic credentials of so-called health "gurus," dangerous "detox" products imported as battery acid and sold for oral consumption, fake acai berry scams, the California raw milk raids, the vaccine research fraud revealed by industry whistleblowers and many other topics.

Adams has also helped defend the rights of home gardeners and protect the medical freedom rights of parents. Adams is widely recognized to have made a remarkable global impact on issues like GMOs, vaccines, nutrition therapies, human consciousness.

In addition to his activism, Adams is an accomplished musician who has released ten popular songs covering a variety of activism topics.

Click here to read a more detailed bio on Mike Adams, the Health Ranger, at HealthRanger.com.

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