Posted on 09/21/2008 9:59:45 AM PDT by vietvet67
Socialists, like Hugo Chavez in Venezuela or Indira Gandhi in India, are famous for nationalising the biggest corporations. But the US government has taken over three of its biggest corporations within two weeks. Has the US turned socialist?
American right-wingers moan that this is indeed the case. Meanwhile, Indian leftists are stunned at nationalisation in a country they view as pitilessly capitalist.
Two of the nationalised corporations, Fannie May and Freddie Mac, are by far the biggest mortgage lenders in the world, with $5 trillion of mortgages and loans on their books. That’s five times India’s GDP, to put their size in perspective. The third corporation, AIG, is the biggest insurance company in the world. No nationalisation in professedly socialist countries was ever so big.
Leftists suspect the US takeovers aim to rescue rich shareholders. Not so. The government will acquire 79.9% of the shares of these companies at virtually zero cost, pushing down the share price close to zero. So, rich shareholders have been wiped out, and the bosses of all three corporations have been sacked.
This is not a rescue of the rich. It is a rescue of ordinary people who need mortgages and a functioning housing market, which would have collapsed had Fannie May and Freddie Mac gone bust. The takeover of AIG will save millions of insurance policy holders from losing their coverage and annuities. The takeovers aim to prevent financial panic from spreading and dragging down the whole economy, as happened in the Great Depression of the 1930s.
The usual procedure in a capitalist welfare state is to let mismanaged companies go bust, penalising the shareholders and managers, and then provide safety nets to those adversely affected.
(Excerpt) Read more at timesofindia.indiatimes.com ...
We are still basically capitalist and free market. But there are a lot of parasitical socialist bloodsuckers living off our prosperity: the IRS, Welfare, bailouts, farm subsidies, the Congress, affirmative action, and the IRS.
It is a tribute to our strength and hard-working nature that we are still doing quite will in spite of all the socialist forces at work.
Sometime’s the truth only takes three letters.
Or “The Blob”! It was like a creeping mess that coated people and things, killed and. I don’t know if you ever saw that. There was the old 50s version, then there was the 80s-90s version. Personally, I liked the old one with Steve McQueen best!
No, we’re trying to prevent a 700 Billion dollar bailout from being signed into law tomorrow morning !
Socialists, like Hugo Chavez in Venezuela or Indira Gandhi in India, are famous for nationalising the biggest corporations. But the US government has taken over three of its biggest corporations within two weeks. Has the US turned socialist?"Moan"? I got your 'moan' right HERE:American right-wingers moan that this is indeed the case. Meanwhile, Indian leftists are stunned at nationalisation in a country they view as pitilessly capitalist.
Ten Planks of the Communist ManifestoSound familiar? It should, most are already US Law. And if Barry gets elected it will get WORSE.
- Abolition of property in land and application of all rents of land to public purposes.
- A heavy progressive or graduated income tax.
- Abolition of all right of inheritance.
- Confiscation of the property of all emigrants and rebels.
- Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.
- Centralization of the means of communication and transport in the hands of the State.
- Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
- Equal liability of all to labour. Establishment of industrial armies, especially for agriculture.
- Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country, by a more equable distribution of the population over the country.
- Free education for all children in public schools. Abolition of children's factory labour in its present form. Combination of education with industrial production.
Nikita Khrushchev was correct, they will bury us from within.
It’s already mostly socialist. That’s why it’s in such a rut.
The columnist is one of the few who have a cue and is always willing to point out that most Emperors have no clothes. His is always a refreshing, thoughtful point of view...kind of like Wes Pruden here at home.
Yes - Aiyer is spot on.
Is there any doubt given this latest bit of socialism and corporate welfare?
Ping
America is in flux. Within 20 years, it will either become completely Conservative or completely Liberal. My guess is that the decision will be made in the same fashion as was the issue of slavery.
My Man Lurker ALWAYS gets it right - saves me from having to post these thoughts.
The thing that irks me the most about these bailouts, particularly the nationalizing of Fannie Mae and Frannie Mac is that my hard earned money now is being transferred to the Chinese Communist Party. I didn’t sign on for that.
The bailout is a transfer of hundreds of billions of U.S. tax dollars to governments overseas.
The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total, foreign investors hold over $1.3 trillion in Fannie and Freddie bonds, according to the U.S. Treasury’s “Report on Foreign Portfolio Holdings of U.S. Securities.”
Is America becoming socialist?
IMHO, the only difference between America and a socialist state is recognition. A socialist state recognizes it is socialist.
What do you mean becoming? Meicare, Social security, welfare, bailouts? We are well past “becoming”.
JoMa
Becoming???? I thought we were there already?
“It is a rescue of ordinary people who need mortgages and a functioning housing market”
Strange that we have yet to see any of this happening. Housing prices are down so there are bargains out there and interest rates are still very low.
Where would the panic come from and why?
I’m sure someone will reply with some story telling justification but everyhing I’ve heard so far sounds hollow.
Only as a side-effect. What this really is "a rescue of the political two-party system", both of which has (to varying degrees) willingly created this mess. Politicians from both parties recognize that their little political empire would collapse and they'd be scrambling for new jobs (as well they should be) if there was an economic collapse. So they are delaying the inevitable with this move, because sooner or later something has to give -- either we change our form of government or we return to our roots -- this limbo won't last.
This morning, I saw this little commentary in the paper, taken from one of the blogs, that it home:
"I Don't Understand Conservatism"
"If the government owns industries and provides a social safety net, that's "socialism" and that's bad. But if the government subsidizes industries, bails them out when they fail and generally provides industries with the type of social safety net that it shouldn't provide for its people, that's good?"
Got to admit that they do have a point. If you are going to steal from people to give to others, you might as well at least give it back to the people that you are stealing from instead of those who are going to take a big chunk of it before they pass any on. But then again, real Conservatives ought to be arguing the government's right to steal from them to give to "others" (people or corporations), to begin with.
Haven’t seen it in years. But I agree with you... the original was much better. And you’re right, it’s EXACTLY like the Blob!
>>>Knowing that Economic Marxism would never sell in the U.S., the followers of Antonio Gramsci (The Frankfurt School) brought Cultural Marxism (P.C.) to America.
Fannie and Freddie were promoted using Cultural Marxist categories. I.e., it was all about blacks and women, not about socialism. Remember when Edith Bunker couldn’t get a loan, because she was a woman? Remember the “Lou Grant” episode about “redlining”? The Carter and Clinton administrations branded anybody who grumbled about the cost or the corruption at Fannie and Freddie as racist and sexist.
The principle is: Government gets its foot in the door using Cultural Marxist excuses. Then, loot the business or institution. Then, when it is clear to everyone that the industry or institution is teetering, bail it out, “to save capitalism.”
Presto! You’ve nationalized/socialized a huge sector of the economy, without ever uttering a word in favor of socialism. In fact, keeping up a steady patter AGAINST socialism while socializing the economy just adds to the fun—and profit.<<<
Brilliant post. Spot on.
Since we’re Americans, we won’t have gulags, either. We’ll still be allowed to vent here at Free Republic, and the system will allow a few conservatives to attain public office. Churches will remain, too. Those institutions and beliefs will be continuously emasculated, slowly, over time, until they are seen merely as archaic groups without influence or meaning. Meanwhile, every office will be required to have diversity training, and every school will have a federalized curriculum with a rosy, upbeat, progressive slant, and every home will confront a thick stack of environmental, land use, and tax regulations in which those who don’t comply face stiff fines or compulsory attendance at a local workshop put on by community organizers designed to educate and inform.
Try aiming a rifle at that.
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