Saturday, October 04, 2008

Just Around The Corner--

I've had some time this week to sit with Mum and watch the news and all of the talking head political shows, which is why I've been posting these vids about the "bailout" here.

When I go through the list of people I know in one of those six degrees scenarios, I realize just how many people there are out there who have mortgages about to reset, or who have swallowed their own tails with credit card debt.

These are all earnest people who haven't failed yet, but are still on the verge. I started wondering what was going to happen after winter passes, and these people all just toss in the towel?

What then?

I've been doing physical work for thirty years. That means that I've paid a price for my labor, with roughed up spinal joints and scars across the backs of all my fingers. It hurts when I sneeze, as my back feels like a rickety old whip that cracks and snaps (and sneezing used to be so much fun!). The point being, I feel like I have earned the right to my dollars and can complain about the system, because frankly, I've been productive and have earned the privilage to complain through my productivity...

So here it is--

When money isn't real, meaning it has no real value, it is something that can be taken away.

Money with no backing is declared wealth. You "claim" it to be wealth, and people accept the claim. When the claim is no longer accepted, the money stops having value.

Economists and Washington DC have been talking about restoring "confidence" in the markets. What they mean is, they want everybody to settle down and declare that money has value. They especially want other countries to relax and keep believing that the American dollar as a piece of paper is worth something.

Much of this "bailout" debacle, is about paying off holders of American paper in other countries so they will continue to believe our money has value. Because you see, much of the paper we've sold them is not worth what we claim it to be worth. In fact, nobody knows what it is worth, and therein lies the crux of the problem.

Our money is dependent on the machinations of a few large banking organizations who make the declarations for us, while reaping the rewards for themselves. This seems highly unacceptable to a guy like me, who worked hard and saved some money. I mean, I don't even know these people and they have ultimate control over what my work is worth.

So...

I invite y'all to try and understand the federal reserve system, and marvel how its validity remains virtually unquestioned. Do you even know who these people are?

4 comments:

Jeannie said...

I don't have a clue. Do you mean the dudes on the clip or in the federal reserve. Same answer for both.

Art here is a talking head. A bullshit artist. Pie in the sky. Trying to create consumer confidence so the emperor can continue wearing nothing but his delusions. Peter made the mistake of introducing the argument about women working. Sure, the tv lady loves HER job and probably her friends too - but he was talking about the waitress types who work because they absolutely have to because their husbands are also not making good money.

Mind you, I have books at least 15 years old saying that we are on the cusp of economic implosion. (I don't think Canada is far behind) I'm amazed that it has taken too long and it couldn't happen at a worse time for us.

Jonas said...

Yer right on target. Dark days are coming.

Kylie ... said...

Scott, you lost me at "Money with no backing is declared wealth."

I have no freakin' idea at all.

I'm a nurse in training. Numbers (unless they relate to heart rate, blood pressure, respiratory rate, oxygen saturations, temperature or urine output) mean nothing to me!

travistee said...

http://www.thisamericanlife.org/Radio_Episode.aspx?episode=365

Check this clip out. You probably already understand it...but it was very helpful for me.