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Posts Tagged ‘financial’

Obviously there is an economic crisis.  The world is unable to borrow money.  As a result countries have stopped trading money.  People have stopped spending money.  Within weeks businesses will stop paying money to employees.  Unless something changes. 

 

The government of the United States has already acted.  They passed a $700 billion bill that, along with unnecessary tax cuts to special interests, relieves stupid and irresponsible bankers and investment agencies of their risk.  Initially confidence was back up, and the stock market regained some of its points.  I don’t know what else to call it, because there isn’t inherent value in the stock market, or money. 

 

Now the economy has regained its sense.  The people of the United States, those whose money fuels the investments and liquidity, told the government not to pass this imaginary money bill (a huge loan taken out by the US Congress in the name of the US people).  Now they are still not confident, still right that the bailout bill was the wrong thing to do.  The Congress went ahead and stole our free market.  So the stock market crashed more than it ever has before. 

 

The world is in turmoil, because most of the world owns stock in our financial stupidity.  Of course looking out your window no one seems to be in turmoil. 

 

I have been in tears.  Yesterday morning, watching news of voter fraud and financial collapse, an eerie thought crossed my mind.  Much like the compulsion to watch the news all day on September 11, 2001 and remember every event and emotion, I thought I should remember these days and their news, as though recording the last days of an era, an ideology, or a country. 

 

I’m generously predicting complete socialism in America in 3 months.  My dad says it could be sooner.  So, as a matter of fact, does President Bush.  The government has acted and will continue to act, he says with regards to the economy and the failing markets.  Our country may soon be socialist. 

 

That is, if country still means anything. 

Today the G7 world leaders are meeting to compose a unified plan for a unified global solution to the economic crisis affecting people internationally.  “In an interconnected world, no nation will gain by driving down the fortunes of another. We are in this together. We will come through it together,” Bush said. “There have been moments of crisis in the past when powerful nations turned their energies against each other or sought to wall themselves off from the world. This time is different.”

My friends don’t know who to vote for in the presidential election.  They’re discouraged with the options offered by major political parties.  We all know that neither candidate will accomplish much of anything toward fixing the massive problems in our government and economy (financial markets and health care), nor will they actually do much of anything for the social interests of people (education, immigration, abortion, and marriage).  The best answer I have is that it won’t matter what we vote.  Our government is rapidly running away from republican principles, the Constitution, and even its national existence. 

Have a good day. 

(My personal philosophy is that whatever is out of my control is in God’s.  He has the future thoroughly planned, and has revealed the end of the world in His word in several places.  What’s more, my personal welfare and provision is securely in his good hands, not ultimately in the government’s.  Whatever happens, however discouraged I may be by world events, I can trust His sovereignty, goodness, and grace.) 

To God be all glory,

Lisa of Longbourn

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Do you ever get those moments where you have an idea, and after thinking through it, decide it wouldn’t work?  And then an hour or so later you get the same idea, but have to think through it all over again to realize it won’t work? 

 

I can’t tell you how many times I’ve had the thought, “I should just get all my money out of the bank.”  And then the thought inevitably follows, “If the bank crashes, so does the dollar.  What good will it do you to have buckets of cash?” 

 

So you might have guessed I think this is a possibility.  And that the thought has crossed my mind recently that the bank is not the safest place to guard my assets.  Recent events have not improved my confidence. 

 

Earlier this year the Congress approved an economic stimulus package, giving away hundreds of dollars to each individual who filed an Income Tax Form.  This was money they didn’t have.  It was borrowed.  But don’t worry; the government has no intention of paying the debts.  In other words, the money is imaginary.  And as long as you go with the flow, believing in the imaginary system, the system floats.  A crash is coming. 

 

Of course the government announced to everyone that it was flooding the markets with all this extra cash, encouraging people to spent.  Anyone selling something ought to have realized the impact is the same as inflation.  In fact it was inflation: infusing the markets with invented money.  All the prices go up accordingly, and except for consumer confidence, nothing is gained.  Consumer confidence, if not backed by reality, is only setting us up for a harder fall. 

 

Such is the direction of US policy.  We push concepts of money and values higher and higher, borrowing more and more as a government and as individuals. 

 

For example, the mortgage industry bail-out.  A mere few weeks ago, without asking me or even informing me ahead of time, someone in the government (I think it was an unelected entity) approved essentially a take-over of Freddie Mac and Fannie Mae.  I must say that the government’s regulations and requirements for these companies had already constituted a take-over.  To gain popularity, the Democratic Congress and Executive during the 90’s instituted policies requiring foolish loans to be made.  For example, they required welfare payments to be counted as income when qualifying for a mortgage. 

 

Now the mortgage industry is in shambles.  House prices are too high to be afforded by normal people unless they take one of these horrible loans.  The moment times get tight (like gas prices go up by supply and demand, raising the prices of any goods transported from origin to buyers), “homeowners” can’t make payments, and the lenders are stuck losing money.  Their recourse is to foreclose, which isn’t a money-producing venture.  Foreclosure is cutting one’s losses. 

 

Since this is all the result of government interference in the markets, it is hard to not expect the government to fix their mistake.  The problem is that the government can’t fix it.  If they do anything at all (except for backing off their policies demanding imprudent lending practices), they will only make matters worse – economically and politically.  Nevertheless, do something they did. 

 

And do something they are trying to again.  Some people are objecting because the $700,000,000,000 plan introduced this week gives control of the money ultimately to one man which it explicitly makes unaccountable and unreviewable to any body of people.  My objection is more fundamental.  Government, whose purse only comes from taxes and loans (which are taxes), has no business doing anything with $700 billion, let alone something in the markets.  They need to back out. 

 

I don’t even know how to begin to petition our government for a redress of grievances for how they have exceeded the Constitution in the economic sector.  The last thing I want is for them to give me money they don’t have again.  What needs to happen is almost universal reform.  Recall every congressman who exceeds his Constitutional jurisdiction by voting for government interference in or support of financial institutions. 

 

What if the government does what it ought, and stays out of this?  Doesn’t our economy desperately need imaginary money to rescue us?  Our economy will suffer a major correction, hard times, probably increased unemployment.  Ultimately we will be better off.  Our position will be less precarious.  We will be saved from a harder fall or worse political/international outcomes should we try to prop our markets yet again.  Some financial institutions may even fail, if the government bail out does not go through. 

 

Be reasonable, though.  Does anyone want irresponsible financial institutions to continue?  What about these financial maneuvers and loopholes on which entire industries are based?  I’m skeptical of the stock market, let alone the industries whose sole purpose is to lend money.  The Bible is pretty much against debt, especially the kind with interest; it’s probably for a good reason.  Eliminating these industries will make transactions in this country a lot more straightforward, accessible to every man (also giving small legitimate businesses a fair chance of competition and survival).  In this time of mismanagement and corruption, transparency is undeniably something to be desired. 

 

To God be all glory,

Lisa of Longbourn

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