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It would make my government proud.
Sheila Colleen Bair was the 19th Chairperson of the U.S. Federal Deposit Insurance Corporation (FDIC).
The following article written by Ms. Bair gives us no hope for the financial future of our country. Imagine if I told my small circle of readers the following:
1. Get your money out of 1’s and 0’s (anything where your assets are tracked electronically) and convert them into something that is necessary, barterable and/or will appreciate. Things like precious metals, firearms, ammunition and food.
2. The government’s plan is to inflate federal reserve notes (and your life’s savings) in order to increase their spending. Get out of the US dollar (see number 1).
3. The government’s plan is also to redistribute your assets through higher taxes for entitlement programs in order to buy elections and stay in power. See 2012 election results. (see number 1.)
Yes, I have stated these facts for the past four years.
Now Ms. Bair is stating the following:
“With interest rates in the basement, why keep squirreling all that money away? Let’s take out some loans and rack up some debt!”
This would make her (not my) government proud. History shows that the extravagant spending and parties (inaugural balls) are at their highest just before their fall. You can draw your own conclusions on this woman’s views: I have written about her incompetence while she ran the FDIC into the ground. And she was excellent at spending money while she was there:
The Federal Deposit Insurance Corp. said Tuesday its 2010 budget will jump to $4 billion from $2.6 billion this year, and announced plans to hire more than 1,600 mostly temporary employees as it continues to grapple with a rising number of bank failures.
The FDIC’s board voted at a public meeting to approve the 2010 budget, which includes $2.5 billion for resolving failed banks taken over by the agency. That’s up from $1.3 billion in 2009. The hiring plans will bring the number of FDIC employees to 8,653.
Ms. Bair will be proud? Let me remind all of us of this truth:
Pride goeth before destruction, and an haughty spirit before a fall.
As the Roman Empire was falling, the emperors distracted the people with games in the Coliseum:
The Etruscans of northern Italy originally held public games, (ludi), which featured such events as gladiator battles and chariot races, as a sacrifice to the gods.
The Romans continued the practice, holding games roughly 10 to 12 times in an average year. Paid for by the emperor, the games were used to keep the poor and unemployed entertained and occupied. The emperor hoped to distract the poor from their poverty in the hopes that they would not revolt.
Over time, the games became more spectacular and elaborate as emperors felt compelled to outdo the previous year’s competitions. The games involved more participants, occurred more frequently, and became more expensive and more outlandish.
It appears that Ms. Bair has just announced “Let the Games Begin” to distract the people by watching death and destruction before the fall.
The price will be high.
by Sheila Bair
It’s well into the new year. Have you made your resolutions yet? No? Well, I have a suggestion. This just could be the year the economy comes roaring back. The housing market is up; unemployment is down. But we all need to do our part to juice it up.
So folks, get with the program: Stop saving and start borrowing. The government is showing zero tolerance for savers, keeping interest rates near zero while targeting inflation north of 2%. Every penny saved in your 0.0005% bank accounts is a penny fast losing value. You need to go out there and spend.
I know that for many of you it will be tough kicking the savings habit. I have been a savings addict for years. When I was young, I was normal. I had six credit cards and kept to a strict regimen of maxing out my credit limits and racking up interest charges by making the minimum payments. For years I stayed straight and didn’t save a nickel.
I’ve tried to change. I refinanced my mortgage three times, but then I saved the extra money instead of spending it. At last I think I’ve found a way to kick the habit — a 5,500-square-foot McMansion on Realtors.com. It’s on sale for $300,000, marked down from $2 million. There are some disadvantages. It’s a two-hour commute from my job, and the utility bills are $2,000 a month. But if I buy before the Federal Housing Administration goes bankrupt, I can get a government-backed mortgage for only 3.5% down.