Our Government-Created Financial Crisis

December 11, 2012 05:57


The foundation for economic collapse 20 to 25 years from now has already been set.

 

By Walter E. Williams at CNSNews.com

EXCERPTS:

Suppose you saw a building on fire. Would you seek counsel from the arsonist who set it ablaze for advice on how to put it out? You say, “Williams, you’d have to be a lunatic to do that!” But that’s precisely what we’ve done: turned to the people who created our fiscal crisis to fix it.

 

The Federal Reserve, under the chairmanship of Alan Greenspan, created the massive housing bubble by over-expanding the money supply. President Bush and members of Congress, through the Community Reinvestment Act, intimidated banks and other financial institutions into making home loans to people ineligible for loans under traditional lending criteria. They became subprime lenders. Lending institutions made these loans, now often demeaned as predator loans, because they knew they’d be sold to government-sponsored enterprises (GSEs) Freddie and Fannie.

The GSEs had no problem taking this risky path, because they knew that Congress would force taxpayers to bail them out. Current Fed Chairman Ben Bernanke is following in the footsteps of his predecessor by massively expanding the money supply by purchasing Treasury debt. He is creating prime conditions for a calamity by the end of this decade.

FULL ARTICLE

Editor’s note:

“Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money,by issuing government bonds, to finance welfare expenditures on a large scale.” – Alan Greenspan

 

Also please consider:

1992 Prediction of America’s Death – Milton Friedman

Obama Wants Unlimited Power to Raise Debt Limit, Bankrupt America

Has Obama Already Bankrupted America?

The Decline and Fall of America

European Socialist Collapse Is Obama’s Plan for America

Obama Has Stolen $5.3 Trillion From Our Children In Order To Make Himself Look Good

Debt quotes

 



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