Interesting that the media balleyhooed the Pope's climate remarks but missed the Pope's call for letting TBTF banks fail
Posted by freedomforall 8 years, 10 months ago to Economics
Excerpt:
Today, in view of the common good, there is urgent need for politics and economics to enter into a frank dialogue in the service of life, especially human life. Saving banks at any cost, making the public pay the price, forgoing a firm commitment to reviewing and reforming the entire system, only reaffirms the absolute power of a financial system, a power which has no future and will only give rise to new crises after a slow, costly and only apparent recovery. The financial crisis of 2007-08 provided an opportunity to develop a new economy, more attentive to ethical principles, and new ways of regulating speculative financial practices and virtual wealth. But the response to the crisis did not include rethinking the outdated criteria which continue to rule the world.
. . . A strategy for real change calls for rethinking processes in their entirety, for it is not enough to include a few superficial ecological considerations while failing to question the logic which underlies present-day culture.
Today, in view of the common good, there is urgent need for politics and economics to enter into a frank dialogue in the service of life, especially human life. Saving banks at any cost, making the public pay the price, forgoing a firm commitment to reviewing and reforming the entire system, only reaffirms the absolute power of a financial system, a power which has no future and will only give rise to new crises after a slow, costly and only apparent recovery. The financial crisis of 2007-08 provided an opportunity to develop a new economy, more attentive to ethical principles, and new ways of regulating speculative financial practices and virtual wealth. But the response to the crisis did not include rethinking the outdated criteria which continue to rule the world.
. . . A strategy for real change calls for rethinking processes in their entirety, for it is not enough to include a few superficial ecological considerations while failing to question the logic which underlies present-day culture.
" When people invest their own funds they are usually careful in their investigations to determine the adequacy of the assets pledge (collateral), the business acument and the honesty of the borrower"
If the government operated to the same strict standards their would be no good argument for it's entering the field {of borrowing and lending} at all. Why do precisely what private agencies already do?
But the government almost invariably operates by different standards. paraphrased The argument for entering the lending business is to provide loans for those who cannot get them from private lenders. {having obtained the money by borrowing from the taxpayers and other investors.} Another way of saying the government will take risks with the peoples(taxpayers) money that private lenders will not take with their own or their investors money {savings accounts and programs including retirement accounts such as PERS, unions, social security etc.}
The government acknowledge the percentage of loss will be higher for government loans than private loans.But claims it is offset by increased production. by borrowers who pay back and even those who don't pay back
It seems plausible if you focus on the people who the government supplies with funds and forget those whom their plan deprives of funds {The often unwilling loaner or tax payer.} What is being lent is not money a medium of exchange but capital.
If the government takes it in the form of taxes or by other means such as regulations it is not available for use elsewhere.
The government not only has no local knowledge of the lender as to ability to pay back the loan it doesn't care as the recent housing bubble crashed showed.
Credit is not something the lending institution nor the government gives it is something the individual has or hasn't earned. (end of paraphrasing but.)
You can apply this lesson to the real life collusion of government and the largest banking concerns to this discussion, the Greek situation or the financial disaster in the USA and it's root causes.When the government borrows money from the future wit no intent of repaying the first sentence is not allowed nor encouraged to exist but it never the less honestly describes the government as not worthy of credit.
When you go to vote in a very few months ask yourself if this vote was a loan of cash money from my retirement fund would I vote for the two major parties, separately or in their current form as the Government Party, and loan them the bucks I need to survive in my eighties and nineties?
Whereupon having answered that honestly you may choose to support evil greater or lesser or by voting for None of the above by any means and using any other valid choice possible. It's your money that you earned they are stealing. Be it precious metal futures, housing loans to those with no credit, or funding EU bailouts.It's your retirement being flushed down the toilet.
In the end and the housing market is a good example with forced sales to those with no credit at all government tells private industry to not only keep making those toxic loans but a. forces them to foreclose on the one hand and backs up the loans b. through bundling and then the devices of FannyMac and FreddieMae (I used the new same sex names this time. FM and FM pay off at some point by using even more tax dollars minus mondo bonuses to the CEOs of those two concerns. The foreclosed housing values are revalued and the smaller banks end up closing enter FDIC - more tax money needed. In one case to get rid of these toxic properties one bank gave them away to veterans about 50,000 nation wide or at least offered. No doubt someone snapped them up bulldozed the derelict dwellings and made a killing on urban renewal projects.
Those who ran this charade got re-elected
The taxpayer was not the true loser in all this. It was the countless businesses where they couldn't spend or invest their money TANSTAAFL and Senator Thomas Dodd one of the chief architects along with Barney Frank is now a CEO at a million a year of a private corporation with a house in Ireland. Who said crime doesn't pay?
Conservatives have been criticizing the Pope for being "co-opted" by the viros. It's the other way around': those in the modern viro "ecology movement" have been co-opted by thousand year old nihilistic mysticism. The religious conservatives dare not discuss that.
Yes, the church attained and held power for hundreds of years. The looters are rationally copying an evil approach that worked (to enslave millions for millennia.)
Similarly, the '60s "peace movement" was both heavily funded and marketed to Western media by the Soviet Union. That was the only battle they won in Viet Nam.
Of course when you are postage stamp surrounded by people with the means to turn Vatican City into a concentration camp - and when you think of the loss of income in the future...what is important was and is again all too apparent.
For all the good Christians in that church you might consider a second reformation.
Now go out and vote for them again.