NationRight

You may have noticed that I have been quiet for several days now.  Partially, that was because I really didn’t know what to say about the latest foray into socialism of our great nation.  Just when I thought they had caught on, here we go again…

The government is now going to spend $700 billion to bail out the entire mortgage industry.  I will repeat myself again (with an updated dollar figure):

Again, the free market only works when people get punished for making mistakes.  The people involved in this crisis made, insured, or bought bad loans made to people that didn’t have the ability to repay them.  It is the fault of the ones who took out the loans, the ones who made the loans, the ones who bought the loans, and the ones who insured the securities made up of these loans.  I, and the vast majority of Americans, are not one of those people or associated with them in any way, so why do I have to pay $8,666 for their mistakes?

That’s right, the total price tag is now $914 billion for all these bail outs, which amounts to $8,666 per household per year, $167 per week, over $4 per hour of your paycheck.

Let me repeat myself again:

Since we have already have a budget deficit, the get this money by just printing more.  That will do nothing but lower the value of the dollar even further, which will drive the cost of oil and other commodities even higher.  The sinking dollar and high commodity pricing has as much to do with the poor health of the economy as the housing/banking/insurance crisis, so, in the grand scheme of things, we are just trading one problem for another!

In case you think I am wrong, look what has happened to the price of oil since this was announced last week.  At that time, oil had dropped to just over $90 per barrel.  At the time of this writing, only 4 days later, oil is trading at over $113 per barrel, an increase of 26%.  When the dollar loses value (perhaps because the Fed printed $914 billion dollars out of thin air!), people buy commodities (like oil) to hedge against inflation, and commodity prices rise.

The big loser in all of this is you and I, the American taxpayer.  Despite what either candidate or either party is telling you, your taxes will have to rise.  There is a lot of talk about the humongous national debt of $9 trillion.  It took us well over 200 years as a nation to accumulate that much debt, and we just added over 10% to it in about two weeks!  Someone has to pay for it, and it will be us in the form of higher taxes, be it income, property, corporate, estate, payroll, capital gains, or whatever else they can dream up.  And don’t be fooled, you may think that you don’t pay corporate taxes or that your property taxes are not to the federal government, but, let me assure you, all of that money will come from your pocket book, through higher prices at the store or less federal monies given to local communities or less jobs created or stagnant wages.  Its all one big government and you and I pay for it!