Monday, September 29, 2008

$700 Billion Bailout Fails - Freedom Loving Libertarians Win

The House voted 205-228 on the Wall Street Bailout, sending a resounding voice to Americans, and the world, that you are own your own.

Normally, in a crisis, telling someone that they are on their own would be considered bad - however, Reagan's great one-liner tells the story best (paraphrased): The scariest thing you can hear is "I'm from the government and I'm here to help"...

In this case, the government took the advice of the people and are deciding to let Bush's nationalization of the United States fail - trusting, instead, on the strength of the American citizen (not consumer) to pull themselves up by the bootstrap!

In this case, the bailout was being voted down at the same time that the free-market did what it does best - WORKING. Wachovia banks sold out their failed business to CITIbank, and indication of how the system is set-up to catch itself as the shakedown occurs.

I called it on Friday that this bail-out was a bad idea, and its failure is inspiring - inspiring in that there are those in the House of Representatives who, regardless of political affiliation, are truly freedom loving free thinkers, able to smell a rotten fish coming from the White House.

What now? The market will stabilize if left alone. Bad businesses will fail. Companies will be forced to adapt. Credit will be harder to come by (and rightfully so). Average Joe Citizen will rethink the 52 inch plasma screen tv in favor of the 36 inch version that he can actually afford. And the world will live to see another day... Maybe this is the wake-up call we needed to help us realign our priorities as individuals and Americans!

MEANWHILE - the Federal Reserve is undermining attempts at stabilization of the US market by injecting Billions of US dollars onto the Global market, causing the value of the US dollar to plummet, and increasing inflation in America.

The best plan would be for the Federal Reserve to close, the United States to value the dollar at pre-Federal Reserve levels by proclaiming a currency correction - releasing new currency in exchange for Federal Reserve Notes at an exchange rate of 22:1. All loans, accounts, etc would be adjusted to the new standard rate, wherein One Gold Certificate would physically represent one unit of gold in the National Treasury. The only way to stabilize this market is to stop the globalization of the US market, return to a gold standard, and return to a policy of non-intervention in the free market by the Federal Government!

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