This is Part 2 of 4 on this subject—the claimed “rescue” of people having delinquent mortgages through a new $75,000,000,000 federal “bailout.”
To fund a new program such as President Obama’s promised “homeowner mortgage foreclosure rescue plan” the federal government must have you pay for it—
The federal government can (a) confiscate your property (whether real estate equity or savings account), or (b) raise your taxes and get your earnings that way, or (c) print more money to pay for the projects, which inflates the amount of spending money in circulation (which in effect dilutes the buying power of the money in your pocket or savings account), or (d) do all of these things.
Overt Confiscation— Open confiscation would not be popular among law abiding, hard working citizens. So this method of taking property is sparingly used, although it has been used in history. There are laws authorizing condemnation (but this “eminent domain” usually requires “just compensation” after “due process”), and laws authorizing civil forfeiture (as where there are violations of “civil laws”) and seizure (for non-payment of taxes), and confiscation claimed under “war powers.” But these don’t endear politicians to the citizens.
Subtle Confiscation— Another federal government method accomplishes confiscation more quietly. It is the printing of fiat money (which is discussed in another posting). The effect is a redistribution of your equity to another person. In fact, if you have been responsibly paying your mortgage over the years, equity in your real estate has already been taken during the last year. Please follow—
Have you noticed that there are a lot more “For Sale” signs in front of homes and condos, but that not many are selling? Have you noticed more “For Rent” and “For Lease” signs lately? Have you noticed that the value of your home or condo has gone down during the last year or so? How did this happen, and what does it mean?
(Continue to next posting on this subject, Part 3 of 4).