WASHINGTON – The Supreme Court won't hear an appeal from ACORN, the activist group driven to ruin by scandal and financial woes, over being banned from getting federal funds.
The high court on Monday refused to review a federal court's decision to uphold Congress's ban on federal funds for the Association of Community Organizations for Reform Now.
Congress cut off ACORN's federal funding last year in response to allegations the group engaged in voter registration fraud and embezzlement and violated the tax-exempt status of some of its affiliates by engaging in partisan political activities.
"Free Money". I've harangued Democrats, moochers and dirty socialists for their usage of "Free Money", and warned of the consequences to this nation when the chickens come home to roost. Here's a remarkable post comment, authored by wretchard (h/t JHoward)...
The original Free Money came from the taxpayer and therefore could be wasted without personal consequences. Politicians became adept at bribing people with their own taxes. But then along came New Improved Free Money, which had the property of being derived from taxes in the future. By borrowing, governments essentially levied a tax on generations unborn, because they would have to pay for the principal plus interest at some point, if the accounts were ever settled. Better yet, there soon arose New Improved Free Money Mega which derived entirely from confidence, by generating chains of transactions on financial instruments which could never be globally settled if called in all at once. It was a supertax consisting of an assumed risk placed surreptitiously on the taxpayers, both future and present, and it grew without many of them ever being aware of it.
From the viewpoint of the politicians it was a marvelous money machine. It seemed truly inexhaustible. By some wizardy the financial system had created instruments the equivalent of bills of taxation that neither had to be approved by Congress nor gave the appearance of being such. The banks had become a source of future and imaginary money. From the viewpoint of the moneymen dealing in Free Money, both in Original, Improved and Mega became the most lucrative line of business.
Now the Free Moneyists and their suppliers of Free Money were actually embarked upon a monumental Ponzi Scheme, which the neither wing of the Party of the Incumbency had the will to derail. While the Republicans might suffer a few more qualms of conscience than the democrats and detect in their nostrils something of the smell of sulphur, the sophisticates assured them that it was alright. The qualms were soon forgotten. The party raged on, unabated, at least until 2008.
When that crisis came the governments plugged the gap with even more Free Money. There was a sigh of relief, but now only at the cost of revealing the heretofore confidential clause with Mephistopheles. What the politicians did not realize, but which the bankers knew all too well at some level of denial, was the money was never truly “Free”. Ultimately it depended on a reasonable expectation that it could be settled. That tenuous link to reality was the hidden secret of the party. Ultimately Free Money was disseverable from the real economy, which means that sooner or later the chips will be called in. The devil would come at midnight; if promised more Free Money interest he might come later, but come he would.
To put it simply, more is owed than can be paid. On the day it all crashes, every holder of Free Money is going to have to take cents on the dollar. There will be asset writedowns, pay cuts, pension reductions, etc as the claims are paid out on its ruins. That the bankruptcy will be declared seems to me now very probable.
After that collapse, anything you have written on paper somewhere will be useless. That's your banked savings, white papers, stocks, 401-K's, everything. What's the real solution to this not-so-improbable collapse?
wretchard asks The Question...
In the end when it goes down, there will be a lot of people holding uncashable Free Money checks: entitlement expectations, housing vouchers, pensions, union wages that will be as worthless as the Confederate dollar. There will be a wailing and gnashing of teeth, and not a few leaps from 40 storey windows. Then when the bodies have been hosed off the sidewalk we will be back to Real Money, more or less. The basic challenge to the individual is how many Real Dollars he’ll walk away with after the smoke clears.
...that is already answered...
“Hyper-inflation is only another word for total default. The only way to avoid it is a government default on its debts only. Then we can switch from a worthless fiat currency to an asset-backed currency.” I smiled. “Gold brings freedom.”
Au, Ag, Pb. Have plenty of each, near to hand.
Oh, and to you dirty socialists - moochers, and your looter enablers who've made political hash of this nation and it's future, in your never-ending quest for a nirvana created of free monies and unicorn farts?
TANSTAAFL, bitches. That's a hard lesson you've yet to learn.
No comments:
Post a Comment