A political response.

posted by The Vidiot @ 10:16 AM Permalink

Bush's proposals for bailing out the mortgage industry is just another example of how government is in the service of the capitalists and not of the people. Here's the money quote:

Excerpt: "It's not the government's job to bail out speculators or those who made the decision to buy a home they knew they could never afford," Bush said in the Rose Garden. "Yet there are many American homeowners who could get through this difficult time with a little flexibility from their lenders or a little help from their government."

So, the government will help the banks, and that will trickle down and help the people... supposedly. Because that trickle down thing always works.

To be fair, some of the proposals will actually help some people, but very few. Not enough. Of the several million people who are getting screwed, only a few hundred thousand will get help. I suspect that the people who will survive in their homes with the aid these proposals provide are at best the upper lower class, not the middle lower and lower lower. As was seen with New Orleans, the government doesn't give a damn about them.

Oh, and I had a mini-epiphany yesterday. I was wondering if the dollar will inflate or deflate, if we're heading for super inflation (lowering the purchasing power of the dollar) or deflation (raising the purchasing power of the dollar). Both paths are possible in this volatile situation we're in and both paths would have major repercussions. For instance, in deflation, US goods become too expensive to sell abroad. With inflation, US goods are cheap to sell, but imported goods become expensive. But I came to the realization that there's no way the government would allow the dollar to deflate. And here's why: If the dollar gains value, then the Chinese make out like bandits. They hold a lot of our dollars. LOTS of them. And from what I read on the 'net, Cheney hates the Chinese almost as much as he hates the Russians. So, Cheney et al would rather stick it to the Chinese than not stick it to them.

So, my not-so-sound financial advice is to buy Euros.

Labels: Economy