Forum Post: Soon we will all be financially equal
Posted 12 years ago on Dec. 22, 2011, 8:16 p.m. EST by hymie
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Equally poor that is, if we don't pass Glass Steagall. Have you noticed the inflation over the past year? Have you seen that it has been accelerating? At this rate, before too long, we will enter a period of hyperinflation, like Germany did before World War 2.
If that happens, we will all be made financially equal. Have you worked hard all your life? Saved every penny you've ever earned, and are now a millionaire? Well, soon you will be on equal ground with every kind of bum, hippie and dropout that you despise if we don't pass Glass Steagall.
When hyperinflation occurs, all of your millions will quickly be gone, because you will have to spend them to buy lunch. Don't like OWS protestors? Please realize that passing Glass Steagall is one of their primary objectives. They actually want you to be able to keep you millions safe where they belong.
Glass Steagall is going to stop Ben Bernanke's printing $$$$$$$$$$$$$$$ ?
Not likely, because who will pay for the continual $4 Billion extra we spend everyday ?
In case you didn't notice, the Asians aren't buying nearly as much of our debt as they used to.
How is Glass Steagall going to fix hyperinflation? Explain the mechanics of that to me.
And regarding the Asians. We have to rebuild our capacity to trade with them something other than just our debt. Since they specialize in inexpensive manufactured goods, we could focus more on high tech infrastructure products and materials, both which we need for ourselves, and that we could sell to them.
From what I've heard, inflation now is caused by the money we are printing to bail out the banks. We are having to bail out investment banks because they were allowed to merge with commercial banks which are guaranteed by our government.
Glass Steagall would provide for a bankruptcy reorganization of the entire banking system, through which investment and commercial banks would be separated. Any bank that doesn't pass the Glass Steagall standard would be bankrupted and we would not have to bail it out.
Mostly the debts in the investment banks are due to highly leveraged derivatives.
I'm really don't claim to be an expert on finance or economics, but this is how I understand it.