The headlines
oscillate between proclamations of bailout success and dark
forebodings -- the visual representation of this is conveniently graphed for us
on the stock indexes for the day. �See?� they taunt. �See how the
market gets better when we say the bailout is at hand? See how it
gets worse when word of your stonewalling gets out?�
We cannot let up on
the Congress, and, frankly, at this point we should be calling our state
representatives as well. We must accept the reality of this situation: This
bailout has minimal impact on the American people; it is primarily about
paying off foreign interests before the collapse, even if that process is to be
heavily veiled and masked by transactions. The $700 billion dollars is nothing
in the face of the problem at hand. It is enough to save a few prominent
corporations, leaving them in position to sweep up the remnants at fire sale
prices.
The great rush to
get this bailout through isn�t about saving the markets. It�s about sucking in
as much capital as possible before the market collapses. As quickly as the
Treasury writes the check, the recipient corporations will retrench and shift their
money out of the U.S. Dollar. Foreign funds will buy stock rapidly, in
companies that hold solid assets, because they need to buy something fast with
those dollars.
It is the collapse
of the derivatives market that looms, trillions of dollars in �credit default
swaps� (62 trillion in the Unites States alone, according to the International
Swaps and Derivatives Association), basically insurance bonds against losses in other credit instruments, bundled and
sold over and over again, like some kind of worldwide Ponzi scheme. It�s
not just the taxpayers holding the bag here; it is mutual funds and pension
plans and savers from here and other nations who are all about to get flattened.
So far, every time the true market price of these bonds rears its ugly
head, it is pennies on the dollar, and this unveiling is what they have been
fighting off since Bear Sterns.
The great lie
is that this bail out will �unclog� the credit pipes -- as if other people are
sitting around with trillions of dollars ready to buy our junk bonds at
above-market prices. This is an almost laughable theory being presented to the
people of the United States. �If we buy $700,000,000,000 of these bad, severely
overvalued bonds at above-market prices, then others will buy the remaining
$61.3 trillion of bad, severely overvalued bonds at above market-prices.� Right.
Come on, kids. .Follow the piper down to the river . . .
But this isn�t the
dialogue that is happening in the public forum (yeah, I use that
loosely). President Bush all but confessed that the sins of the world market
seizure are borne by the USA, though he makes it sound like an unforeseen
consequence, like all gamblers do when the pot goes the other way. And he did a
great job of redirecting attention towards mortgages as the entirety of the
problem, instead of merely the first crack in a dam made of cheap clay. What he
cannot say is this: �It is the derivatives market that has created hundreds of
trillions in false wealth, and it is this market that is imploding. We are
entering a severe recession that will result in the collapse and restructuring
of the economy in ways you cannot imagine, though many people have imagined it
and you probably should have listened more. As far as the bailout, if you knew
what we know, you�d be looting, too . . .�
President Bush met
with McCain and Senator Obama last week. This wasn�t about negotiating the
bailout; this was about negotiating with the voters. I wish it were different
on either front. By the way, President Bush, if you ever wanted to
have your Luke Skywalker moment,
veto whatever bill Congress should pass no matter what and tell people what�s
really going on. Your father would become a footnote . . .
There is not enough
money in the world to circumvent a massive correction in the market. Literally.
That�s the problem. There is not a lot of money, actual wealth, at all. There
are just a lot of people saying they have money. They hold up a bond that�s
worth six cents and declare, �This is worth a dollar.� You think it is a
damnable offense that some family lies on a mortgage application,
exaggerating assets, to get a loan? Corporations like Lehman, Fannie and
Freddie, AIG, and the whole line up yet to come all did this to the tune of
hundreds of billions. But with every default, more of these toxic bonds get
found out. You see, the corporations aren�t really losing money; they are just
being forced to reveal that they didn�t have the money in the first place. This
is why �the credit� has come to a standstill. That is the usual consequence of
lying to your creditors . . .
Your friends and
family must understand these things and take action. We need whatever flimsy
credit we have left to help our fellow taxpayers when misfortune lands upon
them above and beyond the sum of their choices. That�s why we pool our money,
that�s why we hire these people to manage the People�s operations. We, as a
nation, need to seriously review our hiring practices.
Keep calling your senator,
your representatives, your governor, your mayor. Hammer them with this message:
You�ve bailed out enough. Nearly a trillion dollars already. We will reinstate
the value of the dollar by working our way out of this mess, as a people who
all seek the same liberty, regardless of how we often differ in the application
of that liberty. We will not bail you out, and if the fall of
these corporations results in the bought-and-sold members of Congress and
members of the administration losing their revenue streams, so be it. Maybe, if
there is no damn money to be made in D.C., we can get some people in there who
actually want to fulfill their oaths.
Listen to what Bush
said and shake your head free of the patter of hyperbole. You already can�t get
credit, and frankly you shouldn�t go any deeper into debt anyway. You
already can�t find a good job, or at least a job that feels like you
contributed something at the end of the day. You already are paying escalating
prices for everything, and this new addition of debt will dilute the dollar
further, and you will pay more -- inflation is simply a form of taxation. It�s
called monetizing the debt. Either way, we lose. We can�t convert our paychecks
overnight into Swiss Francs. We won�t know when to sell that gold we hoarded,
and then it will be confiscated. And we, unlike the rest of the world, have no
savings.
Well, let�s just get
on with it. Eight years of this administration dangling the Sword of Damocles over our heads, the
constant threat of disaster used to provoke our acceptance of the erosion of
our Constitution and Bill of Rights, has grown old. We�ve given up habeas
corpus, we�ve given up the right to peaceful protest, we given up privacy in
our homes. We gave up a free press. We�re okay with torture, now? When I
joined the Marines at 17, I thought we were the good guys. Now, we�ve got an
Army brigade with active orders on U.S. soil, the first time since the Civil
War, moving to Colorado, having been trained to enforce martial law. Now, just
to bring it home, they would have us give up a trillion dollars.
So, let�s just get
on with it, then. Bring the on damn crisis. Bring on your financial shock
and awe. We�ll show you what we got. We�ll show you that for all of your
divisiveness, we are not a mass of ignorant people incapable of adaptation,
courage, unity and faith. Get on with it already. Get on with your master plan
so we can plan for our tomorrow.
History does repeat itself, and in the end, the
empire always loses. It loses because people who require such obscene advantage
in life in order to secure success are weak, and they build weak structures in
such a hurry to reach the heavens. But we are more than commerce, or a
marketplace. And we are not a nation of people with a Constitution and Bill of
Rights -- We are a Nation because of
the Constitution and Bill of Rights. That is the agreement that binds us. We
are sovereign individuals who consent to be a Nation, through agreed upon rules
of law and truthful representation. There is no royalty or papacy that dare lay
claim to our free will -- that is what our founders recognized, that is the
experiment of our democratic republic crafted from their humility, and that is
the experiment still left undone. That we would choose to avoid for a short
time discomfort rather than secure the integrity of that great experiment is
baffling. It renders the acts and sacrifices of those before us as lesser
deeds, and resigns the promise of those who will follow to the ambitions of
empty men.