Jason Rines (iThinkBig)

To Have and To Hold: Why a Bailout Would Weaken the Dollar

It's interesting. I hear now of all the budget battles being fought at the state and local level. In New England for example, there are being wars waged between political lines to choose between funding health care for impovershed families and subsidizing heating oil. Many people I know whom do not understand economics or refused to listen last June when I told them what was coming do not know how they are going to heat there homes. Even a New Hampshire legislator I know got a $700 home heating oil bill this month, never mind the double usage effect, cost which will occur in November-March. This bill will be larger then many people's mortgages up here.

The bill is now due as you mention user118 about Financial Discontinuity. Nationalizing real estate market means continued mismanagement including theft, scandal and failures, all paid by the taxpayer. The true tax bill would be seen in increases in 2011. Not coincidentally, back in June 2007 this was the year I pegged for Depression. My work was spurned on when I noticed the big money guys liquidating there real-estate holdings while telling the nation that there was only a 25% chance of recession due to housing. I am a student of the Great Depression and here we are again. My numbers in 2007 did not factor in $145 spot price on oil either, it was based on $120. But does Washington respond? No, they need the taxes from gasoline to offset there insane fiscal/energy and foreign policies these last 15 years (although after 911 some of this rampant spending could not be prevented).

What is so much more frustrating about understanding history is that the irresponsible at large are being temporarily bailed out at my expense from the banks to the speculative consumer in real-estate but ultimately responsibility in policy-making resides in Washington.

First -Banks used the liquidity short-term borrowing window to blow up the commodities market to offset there failures in subprime and then add indirect taxation without representation by the Fed through inflation (devalued currency, low rates and further lending to banking parasites). We are beyond moral hazard and into Revolution territory but such will not be seriously considered by the masses for a couple of years as cumulative downward deflation occurs, wages also DECLINE and the common man has all day to sit at his computer and figure it all out. Washington has much to answer for and in particular, the Socialist party of America. As a data guy, I am keeping names this time, as the stupid masses should pinpoint there assult on particular criminals, not overun Washington in there anger when the house of cards falls. That I feel that I must do this at all is beyond disturbing to me as is feeling the need to prepare physically. We'll rebuild and move on but I was beyond pissed off for almost a year but glad I delved deep into the truth.