Some alarming questions about the government bailout:
- How is it possible that these corporations could require this much financial help to stay in business?
- What is the source and destination of all this money?
- In order to fund something this extraordinary, the government is clearly going to have
to print massive amounts of money. They can do this thanks to President Nixon and the fact that our money is now "fiat currency"
instead of having the backing of something tangible. Whenever money is printed, inflation automatically results, because
every single dollar
that you and I possess is reduced in value. With the government printing money in unbelievable amounts, has anyone considered the
staggering levels of inflation which will have to result several years down the road and what that is going to do to every citizen
of the United States?
- Is there really any possible way to avoid astronomical inflation?
- What are the honest chances that the treasury will receive repayment of these loans and investments?
- How does this bailout help to solve the consumer mortgage, debt, and credit crises?
- The government is clearly experimenting with financial principles at levels that have never been tested, certainly
not since our 1971 conversion to fiat money. Is anyone in the government keeping an eye on the possible level of catastrophe
if these experiments fail?
Continue to Fiat Currency...