• Highway to Hell |
Financial 2012-09-07 |
"[The Obama administration] wasted $3 billion of taxpayer funds on the 'Cash for Clunkers' debacle [in 2009]... After that miserable failure, they realized the true secret to selling vehicles is to give them away to anyone that can scratch an X on a loan document, with 0% interest for 60 months... The surge in auto sales is being completely driven by doling out more loans for a longer time frame to deadbeat borrowers. Subprime auto loans now make up 45% of all car loans and the vast majority of all used car loans... It's amazing how many cars you can sell when you aren't worried about getting paid...
Ben Bernanke is screwing the prudent savers...in order to subsidize the bankers that destroyed the country so they can make auto loans to the same people who took out the zero-percent-down, interest-only, no-doc mortgage loans in 2005... Until the bad debt is purged from the system and saving takes precedence over spending, the country will stagger and ultimately fall under the weight of its immense debt... The 'crack-up boom' approaches."
"The boom can last only as long as the credit expansion progresses at an ever-accelerated pace. The boom comes to an end as soon as additional quantities of fiduciary media are no longer thrown upon the loan market. But it could not last forever, even if inflation and credit expansion were to go on endlessly. It would then encounter the barriers which prevent the boundless expansion of circulation credit. It would lead to the 'crack-up boom' and the breakdown of the whole monetary system."
-- Ludwig von Mises, "Human Action", chapter 20
It seems evident that the oligarchs who control the banking system intend for this to be the outcome.