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Government Subsidies Are Not the Money Problem
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
Federal Reserve
thedailybell.com / By Staff Report / April 2, 2013
Stop Subsidizing Wall Street … Imagine if the United States had an airline industry in which the biggest carriers that fly both domestically and internationally received a larger government fuel subsidy than those flying only domestic routes. Unfair? Yes — and that’s exactly how the U.S. financial system works. The fuel of the largest firms in our financial services industry is subsidized, and the public bears the cost. – Washington Post
Dominant Social Theme: Let Wall Street stand on its own two feet.
Free-Market Analysis: This editorial makes the case that the US government is propping up Wall Street products and production and needs to stop it.
The free market and risk taking needs to return to the larger securities industry. When government makes risky activity profitable then risk increases to the detriment of us all.
The article is written by Thomas Michael Hoenig who is described by Wikipedia as director of the Federal Deposit Insurance Corporation. “From 1991 to 2011, he served as the eighth chief executive of the Tenth District Federal Reserve Bank, in Kansas City, United States. In 2010, he was serving as a voting member of the Federal Open Market Committee, as one of five of the twelve Federal Reserve Bank presidents that sit on the Committee on a yearly rotating basis. He is known as an anti-inflation hawk.”
This last description is enlightening. Mr. Hoenig is to be seen as one of those relentless apostles of fiscal rectitude. He wants free-market principles to apply to the current financial system. He doesn’t want to forgive speculators. He wants them to suffer for their mistakes.
The trouble with this perspective – and Mr. Hoenig’s position – is that he works for the mightiest central bank in the world, one that has issued tens of trillions into the marketplace over the past five years to try to defuse the current financial crisis.
Thanks to BrotherJohnF
2013-04-02 15:02:54
Source: http://silveristhenew.com/2013/04/02/government-subsidies-are-not-the-money-problem/
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