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Friday, September 25, 2009

Where Did $81 Billion Go?

This article was interesting. The US government isn't going to recover its $81 billion bailout/"investment" in Chrysler and GM.

Where did that $81 billion go? It didn't vanish into thin air.

The money wound up in the pockets of GM and Chrysler's creditors. That money was used to postpone bankruptcy for awhile. In the meantime, the creditors got extra payments on their bonds. Plus, some of that money was used to enhance the post-bankruptcy value of GM and Chrysler, further benefiting creditors.

Summarizing, the primary beneficiaries of the $81B bailout are the banksters. Some of that $81B is showing up as the recent huge profits for Goldman Sachs, Citigroup, etc. Some of that $81B is going to be paid as bonuses and salaries for the banksters.

Assuming 300M American taxpayers, $81B divided by 300M is $270. It's exactly the same as if $270 were stolen from every single American.

That's the "benefit" of government. If a criminal had to personally steal $270 from everyone, it wouldn't be profitable. The State taxation/inflation engine allows money to be stolen, without anyone able to notice or object.

Government does not protect people from theft. The biggest criminals are those working for the government. Under "color of law", their theft is legitimized.

This $81B is only a tiny slice of the total bailout pie.

Several trillion dollars in bailouts is immoral. However, it is perfectly legal. The people receiving the bailout money are the ones who write the laws! If you're a State insider receiving trillions of dollars, you can always profitably lobby to block reform.

I'm offended by the excesses of the State, the banksters, and the "too big to fail" insiders. Unfortunately, the only practical recourse is agorism.

1 comment:

fritz said...

that is true fsk.the money was stolen from us. At least the notes we have were devalued by that much. But the total population in America is 300M, thats $270 for every person in the country. I saw some where that the number of tax payers is 127M.

Here is a question. (not to justify stealing)But where do the profits the insiders and banksters receive go? I would assume it goes right back into the economy. Or maybe to some foreign place.


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