Wednesday, October 5, 2011
Your Money or your Life!
Anyone following the slow-moving(ish) train-wreck that is the Sovereign Debt crisis, will have noticed that France and Belgium have pledged to prop up Dexia, one of several rotten franchises in the heart of Europe. Presumably taxpayers will come to the rescue, but in the meanwhile, Dexia dropped a miserable 22 points on the Brussel's 'change. You can read about it in the SF Chronicle, if you like.
Belloc wrote somewhere that the Roman Empire was plagued with periodic financial crises brought on by usurious bankers. Interest on non-productive loans (his definition of usury) would mount up over the years until the burden became unsustainable, leading to financial collapse and ever higher tax burdens. Odd how history seems to repeat itself.
Jefferson had this to say about the banks:
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered..."
Prescient, that Founding Father.