Sunday, October 11, 2009

WHY THE $17,500,000,000,000 BAILOUT HASN´T HELPED THE MAJORITY OF AMERICANs MUCH & WHY THE DOLLAR CONTINUES TO CRASH

WHY THE $17,500,000,000,000 BAILOUT HASN´T HELPED THE MAJORITY OF AMERICANs MUCH & WHY THE DOLLAR CONTINUES TO CRASH

By Kevin Stoda, in Germany, & progressive candidate for US Senate in Kansas



Although I live abroad, I am hurt by the continuing collapse of the dollar and the bad American economy. You see my poor father passed away two years back and left me a small annuity, which is taking a beating each year against the Euro (in which I must use as my currency while working in Europe).

In addition, my father’s former home value dropped nearly 40% in two years due to the fact that banks just don’t give out loans easily to people who need loans these days. Naturally, when my late father’s house eventually sells, I will receive only deflated dollars instead of the powerful euro.

Moreover, unemployment among the youngest and oldest portions of the American population are now at record highs--as more and more Americans lose their homes and go on the dole. This makes it difficult for me (and a million plus other American expatriates, like myself) to even consider moving back to the States right this very moment.

As well, the default levels on loans and overall bankrupcies in the US are at all-time highs. Meanwhile, internationally, the dollar is at an all time low against the Euro and other currencies globally. (The dollar is expected to hit 1.5 to the Euro sometime this next week.)


IN A NUTSHELL

In a nutshell the combined Presidencies of George W. Bush and Barack Obama have thrown approximately 17.5 trillion dollars into the American- and global financial investment service pie in the last year—in order to primarily prop up banks and the financial services sector.

According to Nomi Prins and Christopher Hayes, only a “fraction of the $17.5 trillion bailout could have been used to cut the principal of homeowners´ mortgages (using homes, even devalued ones, as collateral) and cover student loans at zero percent interest. Rather than pouring into top layers—the banks—a people’s bailout would have cost less and been more humane. And it would have likely have prevented the ongoing increase in defaults, foreclosures and general economic anxiety.”

http://www.thenation.com/doc/20091012/prins_hayes

Without a people´s bailout, recovery for most average and poorer American families will continue to suffer big time in 2010.

What is still worse is that this was all predicted by myself, by political economists, and by people of good judgment two years ago, i.e. before most people had an inkling as to what the banks were up to in 2008. At that time, i.e. by autumn and winter 2007-2008, we were already shouting for a people’s bailout—and not the big bank bailout that we have witnessed in the interim.

This is not rocket science America!

The dollar’s dropping may help a few American export industries and may help some nascent U.S. industries to develop, but the dollar’s lost value will simply increase the price of oil and any other necessary imports that the poorest Americans will suffer the most for—i.e. because America has no great mass transportation system—other than the financially-crippled private airlines. In short, the wealthiest can afford private planes—the rest of us pay taxes.

No later than the end of 2007 and first week of 2008, many of us--from Naomi Klein to Nomi Prins--were warning that the next Shock Doctrine Attack was already being faced by all Americans. We were shouting out for these following reforms immediately.

Nothing happened because the media—as usual failed us and the richest on Wall Street, AIG insiders, and America´ Citibanks lied to us about the true-coming crises—which they would spin to their own sweet successes in late 2008 and 2009.

Below is basically the text what I wrote around 22 months ago and the recommendations still need to be applied for the first time quite fully, America!!!—Otherwise, Americans will suffer more and more till the land becomes an underdeveloped dangerous superpower, like the Soviet Union. That is, if America does not turn from its ways of helping the richest and letting the poorest run around without insurance, without good jobs, good savings & investments, and with a weak dollar for another generation, American overall value in the eyes of the rest of the planet will suffer—just as the vast majority of our people do suffer today..
Wake up, America!

Demand a piece of the pie so you can afford lobbyists like the bankers and insurance companies have because our taxes are lent to them.

NOTE. Kevin Stoda for President in early January 2008 wrote the following text to Iowa Caucus voters. Sometimes foresight is better than hindsight, America.

EMANCIPATION FROM DEBT AROUND OUR NECKS


http://www.opednews.com/articles/opedne_alone_080102_iowa_voters_2c_please_2c.htm

There are many career officers and servicemen who know that a powerful America in 2020 has to be economically sound. They will have suggestions related to policy on how to shave defense and budget costs. Let’s avoid the quagmires and get out of our present messes as fast as possible.

It is time. . . . to stand up against the enslavement of all blacks, white, reds, yellows, pinks, greens, browns etc.—in the military or out of the military—HOMEOWNERS OR NOT!!!

Naturally, a lot of minority neighborhoods are especially suffering due to the lengthy war in Iraq and the soaking up of funds from community development in the name of the MYTHICAL GOD OF NATIONAL SECURITY!!!

This is where a better focus on spending on educational training, on greater alternative energy infrastructure, and on better planned urban, suburban and rural landscape maintenance will make a safer and cleaner world for all. Minorities and others in Midwestern U.S.A. need to see a new emancipation from these shock doctrine economics that other Republicans and Democrats have force-fed upon us over the last four decades—i.e. without providing real protection to many capable farmers, small businessmen, medium-sized businesses, university students (& potential students) , and homeowners—e.g.. by failing to provide proper incentives and infrastructure in timely regions across the U.S.A.

How many good industries—like the steel industry—has America lost out on by bad usage of other resources?

Likewise, how much time has America already wasted in the War rather than spending resources on Reducing Climate Changes’ negative effects (by ignoring high quality research from our education system that long ago pointed the way to solutions in the wind and solar energy sector)?
….
Demand a government that doesn’t prefer bailing out banks (and misguided investors) over bailing out solid American citizens who have served in the armed forces, lost their jobs, and/or have lost their homes—due to combined college debt, personal debt and homeowner debt.

If banks or lenders are to be bailed out NOW force them by law to learn to compete against credit unions and other local banks across the country who are actually concerned with real local development and in the interest of all—not just ensure the creation of large national banks or bad national lenders of any sort.

Farmers and home owners must be bailed out, but so do other sectors of the land and infrastructure of America (need a helping hand)—including creating a high speed train system between Midwestern Airports and (smaller) cities.

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