The Ultimate Question????
What happens if all the productive capacity of America is owned and under control of the banks and government???
Right now, the government is printing a bunch of money....but most of that money is going to the banks and they are hoarding the cash in their accounts.
In turn the banks are cutting off lines of credit, calling in loans, and pulling in credit cards across the nation. In doing so, people are unable to borrow and unable to spend. Business is slowing and millions of people are losing their jobs.
Those with cash are taking their savings and being forced to pay down debt extinguishing savings for many. Those without enough cash are losing their homes, cars and businesses and ownership is transferring to the banks.
Basically the banks are getting bailed out and taking ownership of more and more of the assets of America. Homes, Cars, Busineses, Shopping Centers etc.......
By the government taking posession of the banks toxic assets....derivitively the government eventually takes ownership of those assets that encumbered that debt.
In sum, the banks and government are taking ownership of much of the assets in America as the people become poorer and poorer and and can't afford to pay taxes to the government.
Right now, there are a significant number of Americans dependent on their pensions and credit card to live. Pretty soon, as DWOT recently blogged, pensions will be out of money. Credit cards limits are being cut back by the trillions as this blog is being written.
In the not too distant future, as we continue down this path, there will be millions of ADDITIONAL Americans unable to make ends meet causing further defaults and slowing in the economy.
As this process deepens, what happens if the majority of Americans can't afford to live at a subsistence level and the owners of the majority of the assets are either banks or government?????????