The US bank "rescue" plan is supposedly intended to avert a disastrous collapse of the economy, which is threatened by the increasing difficulties in obtaining credit.
The word credit comes from the Latin "credo" which means "I believe". Given what has been happening, it should not be surprising that there has been a collapse in trust. However, the so-called bipartisan approach will lead to inflation and a drop in the value of the dollar, which will hit peoples' savings and lead to industrial unrest as people find the value of their wages is shrinking. And it has been suggested that the cost of the rescue is much higher than the figures currently being quoted. It is shocking that there is agreement across the two US political parties.
It would probably be safer and more effective to let the collapse happen - these were only ever paper values, after all - and introduce land value taxation, which would promote a quick recovery and save the US dollar. Given the extent of dollar balances held outside the US, a sell-off could lead to a rapid collapse - and what will that do for the US economy and for its political influence?
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