Lawlessness is Out of Control – Guest Post
June 8, 2009 by admncc
Here at The Constant Complainer, in addition to my own posts, readers can submit Guest Posts on topics they would like to complain about. Tristan submitted the below-Guest Post. His complaint is the economy’s disorder. This is certainly a topic everyone has an opinion on. So enjoy and without further adieu, here’s Tristan…
You should be shaking in your 401(k). Click here for the story.
Note that this idea of “shared sacrifice” serves only to punish responsibility, offloading pain from the fools and crooks and giving it to the rest of us. What is frightening is that this mentality is combined with an utter disregard for federal law, so bonds, pensions, mutual funds…nothing is safe.
GM bondholders should have been first in line to collect on that debt in bankruptcy. Since that law was ignored, absolutely any bond can be stolen in a similar manner.
Add to that this sort of propaganda nonsense. Click here for the video.
Worth noting is that the FDIC currently has something like $13 billion in reserves remaining to insure $4.8 trillion in deposits. That’s 0.27%, or almost 4000:1 leverage. Historically, sound banking is usually closer to 10:1. That $250,000 limit that they have, if called, is only $675 per account. I think most banks in reality are insolvent (assets fall short of debt obligations), more so with every bursting bubble. It won’t be long until the FDIC comes crawling back for more money, courtesy of the once, now, and future taxpayers.
Obviously current tax receipts won’t be enough, given the $2 trillion budget deficit (not to mention climbing unemployment, which decreases receipts and increases liabilities, or retiring baby boomers for that matter), so we have to count on future taxpayers by issuing debt. Unfortunately, as debt grows, so does perceived risk, and the old faithful such as the Chinese are not so willing to contribute. So without current and future tax income, we’re left with former tax income or tax deferred accounts. Theft could easily find its way into government bonds and treasuries as it has already been shown that the law is not an issue.
This means your retirement savings, bank accounts, pension, benefits–none of it is safe. The only good news, assuming you do have cash in a shoe box, is that you may be able to buy real estate and other possible stores of wealth in the future for 10 cents on the dollar when it all unwinds.
I know, no one liked math or history in school. Just know this: Accounting games by bureaucrats are not going to make our problems go away any longer. It’s time to snap out of it and realize that there are more important things than who wins American Idol. The world as we’ve known it for all or most of our lives is on the edge of a cliff. At this point it cannot be stopped. Change you can believe in will be replaced by change you didn’t believe could happen.
I understand all too well that I sound like a lunatic making such claims. So, please, ask for any clarity and I will provide it to the best of my ability. I’m wondering, is there any point at which people will help themselves? What proof is required that things really can be as bad as they seem?