Originally published February 19 2009
The Economic Fallacy of Government Intervention with Bailout Money
by Mike Adams, the Health Ranger, NaturalNews Editor
(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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