Bankers and Politicians Are Robbing People Everywhere

Before you shed tears for the plight of elite bankers, let this statement sink in:

Cyprus’ banking sector must shrink. As did Ireland’s, the hard way. What is essential, as every Irishman and woman will tell you, is that the politicians do not load up the weaker citizen’s/taxpayers’ shoulders with enormous debts on behalf of bankers that refuse to wither. Read more at http://www.nakedcapitalism.com/2013/03/yanis-varoufakis-while-waiting-for-cyprus-godot.html#dCKwchxGzzT2ljPx.99

Wall Street on Little Guy

That’s from Yanis Varoufakis, professor of economics at Athens University. It explains what’s going on throughout Europe in the United States.

Top bankers and politicians created a phony wealth system that crashed. Or is crashing. Instead of letting it crash and rebuilding on sound economics, the big bankers and politicians are a) loading us up with debt, or b) confiscating our savings.

The elites refuse to accept the consequences of their own failed system. Tyler Durden makes the point here on ZeroHedge.com:

Throughout all of this, the global elites have displayed consistently worsening signs of decadence, psychopathic tendencies, and overall detachment from reality.

The core problem here is that Westerners have ceded almost all political and economic power to the elites. Representative democracy was designed to prevent elites from accumulating power, but it only works if people hold onto their power jealously. Here’s how William F. Buckley put it in Up From Liberalism:

I will not cede more power to the state. I will not willingly cede more power to anyone, not to the state, not to General Motors, not to the CIO. I will hoard my power like a miser, resisting every effort to drain it away from me. I will then use my power as I see fit.

Buckley is dead, and so is his ethos.

Debt hasn’t diminished since the crisis began. It’s grown like an infected boil on the face of democracy.

As massive debts accumulate to governments and ever larger banks, the temptation among the elites to rob the rest of us grows stronger. And the longer we wait to pop this zit, the deadlier the pus explosion when it ruptures.

Terrific: U.S. Pumping $$ into European Economic Abyss

Break out the Depression Glasses to toast the Obama Administration’s latest foray into economic disaster. Just posted on WSJ.com:

BREAKING: The Federal Reserve and other central banks open a credit line to send dollars to Europe to ease debt crisis.

Yes, folks. Your taxes are going up, your kids are going deeper into debt, to bail out lazy, overpaid, spoiled Greek socialists. Thank your president.

The U.S. move follows a panicked decision by EU leaders to pump hundreds of billions of $$ into failing socialist economies in Europe to avert a global economic collapse.

But the scheme may not work.

The problems in Greece, Spain, and Portugal (and Japan, Ireland, and elsewhere) result from too much government debt and too much government regulation.  The countries offering to fund this $650 billion emergency fund are already deeply in debt.  In other words, this is just the latest attempts by socialist governments to borrow their way to prosperity.

In 2008, governments moved debt from underneath Shell A to underneath Shell B.  Now, they’re moving debt to Shell C, the last shell in the game. It looks to me that governments around the world are in an all out panic.  They see the shell game crumbling.  They’re running out of tricks.

Related news stories highlight the problem. Bloomberg reports that banks no longer trust each other, which is driving Credit Default Swaps (CDS) to record levels.

The interest rate that financial companies charge each other for three month loans in dollars is the highest since August, while traders are paying record amounts to hedge against losses in European bank bonds. Yields on all types of corporate bonds rose last week by the most relative to government debt since Lehman Brothers Holdings Inc.’s bankruptcy in September 2008, according to Bank of America Merrill Lynch indexes.

Moody’s, the debt rating organization, says that a Greek-style crisis could his America as soon as 2013, according to Investors.com (HT Drudge Report).

But under more adverse scenarios than the CBO considered, including higher interest rates, Moody's projects that debt service could hit 22.4% of revenue by 2013.

"While we see limited risk of a U.S. sovereign debt downgrade in the next 2-3 years, beyond that we cannot be so certain," wrote Societe Generale's economics team in a recent report.

The Tea Party happened because ordinary Americans sensed something horribly foul in the air steaming out of Washington, DC.  That acrid smell was socialist-driven debt.  And it’s only gotten thicker since then. The White House is imposing policies designed to weaken and break small businesses and to socialize large businesses until there is nothing left but government.

Stop them.  Stop them now. Stopping them is why we created Ensuring Liberty.  Join us today.