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No matter how many hundreds of billions of dollars are thrown at this situation – it isn’t going to fix it. The one thing that can fix it is substance – not game playing maneuvers.

Unfortunately, by releasing 180 billion dollars into the global markets through the central banks, the value of the dollar was altered, not only temporarily but longer term than acceptable. The Federal Reserve knew this when they did it, but the short-term stop-gap thinking yielded this idea as a positive way to stop the global market’s immediate slide. And, indeed it did halt this slide.

Now, however, at the cost of our economy, this maneuver yields some dangerous implications. First of all, there isn’t a bear nor bull market available any longer. This has become something else as the US dollar continues to underwrite economic futures around the world. When the takeover of AIG was made, it didn’t matter what it would cause, they did it anyway. As our US government pledged money they don’t have to backup a company that isn’t worth what it says, the game was over.

Money held in a Mason jar for two years won’t be worth its value when placed there. Money in the stock markets are simply feeding brokers a living. Money put into companies that are allowed to make up their value by imagination rather than intelligent review of resources to liabilities will yield nothing or less than nothing. Money placed into world currencies will be devalued over time as the dollar yield is the basis of their relative backstop valuing. And, the value of real properties are not based in reality which therefore will rob the owner rather than yield for the investment and time.

What this leaves is not worth considering. Second of all, there are people making these economic decisions from sources in the US that are more inclined to political and personal gain than in the overall impacts of their actions. When they existed within the framework of private enterprise, these impacts were limited by the range of influence. Now, in the positions of power within the US government economic agencies, their ranges of influence are far-reaching but less properly understood.

It is not possible to offset the reality that is occurring, no matter how it is “framed”, no matter what propaganda and spin is given to it, no matter how differing views are discredited. These won’t make any difference because it is not perception of reality that counts but rather that reality is what matters. As people see that US dollars simply have no value, they will know it. Just as people discovered that the equity in their homes became a negative value rather than a positive one despite the years of paying payments honorably, they will also know as their money isn’t a usable way to take care of bills, food, gasoline, insurance, house payments and other needs.

As people realize that the interest on their credit cards are no longer a few percentage points, but rather a 22% – 26% rate, regardless of their timely payments on them, they will know that is real dollars unavailable to them for other things. As the cost of getting to work and making errands becomes a choice between other needs or gasoline to put in the tank for continued employment, they will “get it” that the devaluation of the dollar makes a difference to them personally. As the liabilities of our government bailouts increase, people will mildly notice at first then awaken to the real implications as their opportunities diminish and their region goes into bankruptcy.

It isn’t only a matter of time. That portion of the “game” is over. That time doesn’t exist anymore. There are valid methods to use that will take care of this. Using the same pathways that we’re using from the Great Depression, such as takeover of private companies – has been tried to greatly dismal results everywhere in the world they’ve been used. It devalues all other assets and undermines the free market economic model in practice. Not only does it break anti-trust and fair competition compacts, it also puts the US government into an improper position of owning businesses that it isn’t qualified to hold, manage or operate.

Third of all, after the US government has operated around the world insisting that other nations divest their nationalized companies in trade for a free market capitalist economy, it is oblation to decimate that operating policy by actions to nationalize companies in the US for any reason. In the case of Freddie Mac and Fannie Mae, there was inherent risk of having to backstop these due to the implicit guarantee by the US government. The structure of quasi-private/government partnership in these companies was a bad model in the first place but once it was allowed, the US government would have to back them.

This is not the case for AIG and other companies. As the actions were made to pledge our citizens’ moneys to take over this company and all its liabilities, poor choices, obscene accounting practices and worldwide structures, our government created a practical model that is the antithesis of capitalism and free market economy. They abused the privilege of access to US Treasury resources, stepped into communism and acted as a dictatorship rather than a responsible member of the world community and a representative of the people of the United States.

Written by Cricket Diane C Phillips, 09-17-08, USA