The Truth About Bailouts (Peter Schiff)
The Truth About Bailouts
by Peter Schiff
November 24, 2008
As the Federal bailout bonanza prepares to spread beyond the mortgage and financial sectors to fill Detroit’s depleted coffers, few economic or policy analysts have spared a thought for the destitution of the U.S. government itself. Put simply, our government doesn’t have enough spare cash to bail out a lemonade stand let alone a bloated and failing industry that is losing tens of billions of dollars per month. Washington can only offer funds that it has borrowed from abroad or printed. Unfortunately, the nation is in the grips of a delusion that money derived from these sources has the power to heal. But history has clearly shown that borrowed or printed money only has the power to destroy.
The argument that energizes the pro-Detroit camp is that the government should extend the same courtesy to the rank and file auto workers that it lavished upon the fat cats of Wall Street. While two wrongs certainly do not make a right, the fact remains that the Wall Street firms are still floundering despite the bailouts. What’s worse, the money spent was either printed or borrowed from abroad. Both options are destructive to America.
Much more in the article. Well worth the read. Peter Schiff is the one who called this collapse before anyone else, if I remember correctly. You can find many of his videos on YouTube, like this one “Peter Schiff Was Right 2006-2007.”
Have you been to the grocery store lately? I don’t think the high prices are just here in VA. The grocery store is a scary place to go right now.
Maybe it is time to take a look at Surviving the Economy, he?
