The libertarian movement accuses government of stealing if that government suggests or encourages forgiveness of debt or taxation for the benefit of the poor. Rick Santelli spoke for the Tea Party, which was, at least in the beginning, closely aligned with the libertarians.
He said, while the crony banks were being bailed out, that homeowners should not be bailed out because it would land on the taxpayers and they just made a bad bet and lost.
I am not suggesting that runs on the banking system was a crisis to be ignored, but certainly the crisis should have resulted in banks paying back damages that exceeded TARP fund costs to society. One of the ways that payback could have taken place would have been through the forgiveness of the toxic loans. They were all evil loans for most of the people who received them.
Banks could have been put into receivership and could have been cleaned up.
If God had a say, the debt based on toxic lending, which fooled many, would be forgiven in 7 years. And taxpayer debt would be forgiven in jubilee.
While I strongly believe in separation of church and state, the example of Old Testament Israel is one of compassion for those in debt. No one can deny this. The law required those in debt to be forgiven of their debt every 7 years. There was a jubilee of debt forgiveness for the nation every 50 years. The poor could eat a day’s worth of food out of a farmer’s field. At the end of harvest the poor could gather all the left over food from the crops and take it home.No one in his right mind would accuse God of stealing from those farmers.
The libertarians hate government “stealing” from them when debt is wiped away and when their taxes go to welfare. Libertarians are closely aligned with the godless Ayn Rand, who believed that the highest moral calling was to be selfish! The libertarians have adopted Ayn Rand as they too are selfish.
So, libertarians would accuse God himself of being a thief. They cannot cope with the idea that governments have a duty to in some way care for the poor through taxing hard earned profit and income from the more wealthy members of the society.
But libertarians are particularly useful for the bankers of greed, since they affirm the need to pay all debts, no matter how that keeps America and the world from prospering down on main street. The bankers would allow no forgiveness of debt, and indeed they would like perpetual credit lending if they could get away with it.
Germany was given debt forgiveness after World War 2 and prospered. I don’t see the German EU giving debt forgiveness to Greece. The 50 per cent haircut on bonds is not enough! Debt forgiveness is never complete. The governments are not powerful enough to override bond holders who are mainly the big banks.
Now, since I have written that the 30 year fixed loan is helpful in a society of limited resources and land, that loan would have to have debt forgiveness built in over a longer time span. But toxic loans would not be subject to those protections. Banks can expect to triple their investment in these loans over time. Some debt forgiveness based upon income could be introduced for the 30 year loan as well. But the interest sought by lenders coupled with their desire to see no debt forgiveness makes for extremely high profits. The bankers want big profit, and they want government and the libertarians to help them get and protect that big profit.
The God of Abraham was a God of compassion, even in the Old Testament. The forgiveness of debt was an important economic tool for the nation. There were no debtors prisons, or perpetual debt, and there was no system of alerting employers if you didn’t pay your debt. The system we have today is so wrong and so oppressive that it is no wonder that we have the Occupy Wall Street movement, with students saddled with debts that their income cannot pay down.
The reason we cannot trust banks in this system is because we cannot hope for mercy from them in any way. We are prisoners of the financial system. The pillar of this oppressive system is the credit score. It puts the fear of debt failure squarely upon the borrower.
As the IMF is busy making life tough for the Greeks, this world bank realises that some principle of the toxic loans should be written down here in America. Yet even this bank fears the “moral hazard” of writing down loans as this bank wants to preserve the cake for the crony banks while appearing to be sympathetic to the borrowers. I have my doubts. This same bank wants to rekindle future securitization of mortgages and has no qualms about the moral hazard of that endeavour!
The libertarians are all for this casino of debt rocking again. And they are against taxation for the poor, and consider that stealing by the government. God would have rejected that phony thesis in the Old Testament. The libertarians are against all forms of collectivism, except for the collectivism of banking and lending! As we see from the Old Testament, there was a great deal of collectivist requirements on the wealthy of Israel.
For the libertarian, there can be no other logical conclusion than this: God is a collectivist thief!
But as God sought to protect the poor and debt oppressed in Israel so too does our government have the responsibility to offer similar protections. The libertarian/banker/Tea Party rejection of any consumer protection regarding education of the masses about toxic loans is just one example of the godless mindset that rules our nation and world.
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