Then Bush fucked up the bankruptcy laws and the war was waged, and all the while I'm thinking where do they think they are getting the money from? Us?
The author explores the history of this country and the gold standard. He pursues it further and recounts the debtors prisons of England around the 1700's. He also discusses the seizure of assets. What existed to prevent these were the bankruptcy laws. Bankruptcy used to enable people a civilized way to get out of debt. Still, some assets would be liquidated, yet there would be guarantees that you could keep the things you need.
The neocon revolution, beginning with Reagan, deregulated the banking and lending industry to allow interest rates over 20% to be used by credit card companies. Before Reagan, such lending rates will illegal and considered usury. These sick rates of lending ensure that the debtor will never escape the pit. Yet I can't help but ask, if everyone is getting screwed like this, then why is there still such a stigma on bad credit. This was the only thing that prevented me from declaring bankruptcy in the past. Are credit defaulters the new "welfare queens?" (google it for more info).
Really, I didn't feel a need to dig for the article all these years until these past few months where a few of the mainstream and semi-mainstream news sources have been issuing warnings about being in debt right now. None of these outlets ever come out and say why. It is usually some financial analyst being interviewed. On public radio, one woman during a call in session about the economy stated that she was living on loans for her tuition and asked what changes she needed to make. The economist told her that it was the worst time to use loans to get by.
I see people getting their pensions yanked away, so the idea that collecting debts in a more forceful way to finance the country doesn't seemed to far fetched. Historically, it isn't far fetched. Rebuilding the economy? What economy? The banks sit around with their bailout cash. Businesses are bailing out of the country like rats out of a sinking boat. Haliburton is based in Dubai now. Compound that with outsourcing, and I really won't be surprised if the scumbags take the money and run and use our wealth, or labor to pay their own debts. Must have been fun for Bush to be president. Dick and Rove let him play with his toy soldiers while they structure national policy to get rich. I may be wrong, I can't make concrete predictions... but being prepared for anything might be a really good idea.
I am currently pondering this question. This was written in 1995 by the way.
How you are being economically raped
Other stuff by author:
Origins of the federal reserve