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Who Is Getting the Money?   

The Government along with the Federal Reserve is in the process of loaning out about 700 billion dollars to bail out the super-wealthy again.   For an explanation of what this is really all about, see  the section below titled:   What's Under the Facade:     

Who Is Getting the Attention?   

There's the government's solution and the financial industry's solution which you are hearing about all over the place.   Then there's the people's solution which, at the moment, is getting almost zero publicity.  

Make-Believe Money:   

The government doesn't have any real money ² to loan so they are deficit Financing ²  these bailouts.  This means that they are creating more make-believe  money.  

Whenever the government spends or loans make-believe (fiat) money, the government is underhandedly and  indirectly taxing the public.²   In this case they are, once again, proposing to tax the working class to support the super-wealthy.   This is the same old, tired, dysfunctional, short-term-thinking solutions that they've always offered.   

You might be interested to know that the Federal Reserve and the super-wealthy are in essence one and the same thing.  The Federal Reserve is made up of twelve private banks.   Those twelve banks are directly or indirectly controlled by the same group of people who are, at least in part,  responsible for the financial crisis.  So here's what is actually happening --  The super wealthy are paying themselves for screwing the public with their failed financial activities.  They are paying themselves with the public's money.  And they are peddling the entire scam as a service to the people. 

How the Financial  Con Game Works:   

Here's how the process has worked in the past.   The Federal reserve loaned money to the banks at a low interest rate.   (The current interest rate - September 2008-  is two percent)  The banks, in turn, loaned that make-believe money to home buyers at a higher interest rate.   Because the bankers dominate the government, they also got the legislators to pass laws allowing the banks to legally loan out ten dollars for every dollar they have as a deposit in their bank.   This is called fractional-reserve lending ² also known as leverage.  This resulted in an increase in the supply of money.   The net result is that the value of the existing dollars went down and the cost of goods and services went up.   This is called Inflation.²   When you look under the surface, you'll also notice the home owner was paying interest with his or her hard-earned money on a loan that was made from fake, make-believe (fiat) money.  

In the past relatively small amounts of new fiat money (make-believe money) were introduced into the economy.    The system was only mildly affected in the short run.   Over time, significant changes showed up, but the rate of change was slow enough for the system to adjust without any crisis.   

Too Much Too Fast:   

The Republicans , under the public-leadership of George Bush and the behind the scenes leadership of Dick Cheney, deficit financed over three trillion dollars in less than eight years.    The system could not absorb that much financial loss in that short of time.   When you add in the financial wheelers and dealers on wall street and their sub prime mortgage meltdown, a financial crisis was inevitable.   

The Government's Answer:   

The government's proposed solution is to do more of the same and do the same thing harder --  to tax the working class (by deficit spending)  to bail out  the banks and other lending institutions which are controlled and owned by the super-wealthy.  

The Trickle Down Effect:   

The trickle down affect has proven itself to be about as effective as abstinence-only sex education.   It may satisfy its promoters hidden intentions, but in terms of its effectiveness, it simply does not produce the stated intention.   It more like the message on the sign I  once saw over a public urinal:  "No matter how much you wiggle and dance, the last few drops go down your pants.  

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