Cash for Clunkers Could Lead to Government Bulldozing Homes.
FORT LEE, N.J., Aug. 7 /PRNewswire/ -- The National Inflation Association today released the following statement to its http://inflation.us/ members:
"The United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. government's "cash for clunkers" program, which was just expanded by $2 billion on Thursday, exemplifies the stupidity of politicians in Washington today. It's insane to think that destroying perfectly good and valuable assets, cars that people can drive, will help save our economy. This program is digging our economy into a deeper hole that we will never be able to dig out to depart; to leave, esp. hastily; decamp.
See also: Dig of.
We do not have an automobile crisis in the U.S., the average American household already has 2.3 cars. The automobile industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. needed to collapse in order to build a new viable auto industry from the ground-floor. By artificially boosting car sales, the government is preventing the free market from cleaning out the excesses in the industry.
During the Great Depression, millions of Americans couldn't afford to buy food. With food prices falling and huge surpluses of food building, the government decided to pass the Agricultural Adjustment Act The Agricultural Adjustment Act (or AAA) (Public law 73-10 of May 12, 1933) restricted production during the New Deal by paying farmers to reduce crop area. Its purpose was to reduce crop surplus so as to effectively raise the value of crops, thereby giving farmers relative of 1933 which forced farmers to destroy crops and livestock in an attempt to artificially drive up food prices. The plan backfired and led to millions of Americans starving, prolonging the Great Depression for another six years.
The current financial crisis in America was caused by both the U.S. government and American people getting into too much debt. Not only is the government getting deeper into debt by purchasing used cars for $4,500 and destroying them, but Americans are being forced to get deeper into debt to buy new cars. The used cars being purchased and destroyed were owned by Americans outright. The free market would've encouraged Americans to drive these cars until they stopped working, while rebuilding their savings. The government is preventing this from happening and doing greater damage to the economy.
Four out of the top five models of new cars being purchased as part of "cash for clunkers" are foreign cars. Therefore, very little of this newly printed money is going to the bailed out U.S. automobile manufacturers. We are increasing our trade deficit with Japan and other foreign countries at a time when we should be manufacturing cars that we export to the rest of the world, so that we can shrink our trade deficit.
With all of the new government employees being hired to administrate ad·min·is·trate
tr.v. ad·min·is·trat·ed, ad·min·is·trat·ing, ad·min·is·trates
[-trating, -trated "cash for clunkers", the true cost is over $6,000 per car. Most modern day economists featured by the mainstream media say "cash for clunkers" will be a huge boost to the economy, because it will help lower unemployment and increase our GDP GDP (guanosine diphosphate): see guanine. . It's amazing how they can phrase the program as a success, when it is only leading our country further down the path of hyperinflation Hyperinflation
Extremely rapid or out of control inflation.
There is no precise numerical definition to hyperinflation. This is a situation where price increases are so out of control that the concept of inflation is meaningless. . The misguided and irresponsible phrase in the mainstream media will encourage politicians to come up with more stupid programs for other so-called crises.
Real Estate prices in America still haven't fallen to below year 2000 levels because the banks that are foreclosing on properties are sitting on these properties and not selling them. After banks get the required infrastructure and manpower in place and begin selling them, Real Estate prices will fall to unimaginably low levels. Will the government repeat their mistakes with the Agricultural Adjustment Act of 1933 and "cash for clunkers" and begin purchasing these houses from banks only to bulldoze bull·doze
v. bull·dozed, bull·doz·ing, bull·dozes
1. To clear, dig up, or move with a bulldozer.
2. To treat in an abusive manner; bully.
There have already been isolated cases in places such as Victorville, California, where banks have destroyed nearly complete new homes instead of completing and selling them. In Flint, Michigan, local government officials are promoting "the concept of shrinking Flint in order to make it stronger", by bulldozing 40% of the community. What is to stop the federal government from destroying already built existing homes, to prevent them from becoming listed on the market? It sounds like insanity, and it is, but if the government destroyed food and is now destroying cars, houses are likely next."
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The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. The NIA offers free membership at http://www.inflation.us/ and provides its members with articles about the economy and inflation, news stories, important charts not shown by the mainstream media; YouTube videos featuring Jim Rogers, Marc Faber, Ron Paul, Peter Schiff, and others; and profiles of gold, silver, and agriculture companies that we believe could prosper in an inflationary environment.
CONTACT: Gerard Adams 888-99-NIA US (888-996-4287) Editor@inflation.us
CONTACT: Gerard Adams, 888-99-NIA US (888-996-4287), Editor@inflation.us
Web Site: http://www.inflation.us/