Posted on 08/27/2002 3:21:15 PM PDT by BlackJack
Aug. 27 — More than 40 million Americans are depending on a little-known federal agency to protect their pensions if recession-wracked companies go belly up and can’t pay retirees what they’ve been promised. The Pension Benefit Guarantee Corporation is the backstop in the event firms can’t pay benefits to retirees. With many corporations sure to report under-funded pension plans by the end of this year, the PBGC is looming larger in importance as the protector of workers and retirees.
The ability to borrow is based upon the ability to repay. Period. On what basis do you disagree with this?
Now we're getting somewhere. As a libertarian aren't you against expansive government? Wouldn't a government that could only pay for programs by selling assets tend to be more reluctant to expand?
My single biggest issue, BY FAR, is the monetary system which is characterized by special privileges granted by government to the monetary elite, which, IMO, is GUARANTEED to crash if not reformed.
What privileges are granted to which elites? Fannie Mae, Freddie Mac?
How does the government plan to repay the money borrowed? I thought taxes we're the only way? Taxes can only go so high as a % of GDP before people start avoiding them.
No a government that could only pay for programs by selling assets would soon cease to exist (as well as the society that government formerly governed).
The monetary elite = the entire financial sector of the economy, primarily the banks.
The Special Privileges =
1. A bank's ability to create and distribute money, limited only by its reserves at the Fed.
2. Taxpayer bailouts of the banking systems bad loans.
3. The secrecy rules that allow the banking system to operate in secrecy, even from shareholders.
4. Accounting gimmicks banks alone are legally allowed to use that disguise their inherent insolvency.
5. FDIC guarantees that protect their deposit liabilities.
6. The unlimited ability to borrow reserves from the Fed if the Fed so desires.
An excellent summary of the special privleges and an explanation of why they will necessarily lead to monetary collapse, read the 14.5 page introduction of Special Privilege: How the Monetary Elite Benefit at Your Expense
While I'm somewhat concerned about the growth of Freddie and Fannie, I am much more concerned about banks and investment banks funneling money to foreign governments and multi-national frauds like Enron, etc. than I am about an institution that lends to the common ordinary consumer---the one sucker, that still attempts to play by the rules!
2. Taxpayer bailouts of the banking systems bad loans.
3. The secrecy rules that allow the banking system to operate in secrecy, even from shareholders.
4. Accounting gimmicks banks alone are legally allowed to use that disguise their inherent insolvency.
5. FDIC guarantees that protect their deposit liabilities.
6. The unlimited ability to borrow reserves from the Fed if the Fed so desires.
Can't argue with you here.
Can't argue with you here either.
I'm still a little confused. As a libertarian do you think the government is doing too much and should shrink and cut taxes?
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