The nationalization of insolvency.

Gary North has some great insights. Its from the members side and lists out how on 5 different Sundays our nation was changed. And now the central banks latest fix involves trying to get americans easier credit. We arrived here by living beyond our means. But as far as the central bank is concerned, if that's what it takes...

As a conservative, I grew up in the threat of socialism: the nationalization of the tools of production. What no one warned me was that this could be accomplished by way of a unique form of nationalization: the nationalization of insolvency.

We have lived through this process in 2008. The process will continue for several more years.

Insolvency is being transferred from the banking sector to the government sector. How much insolvency? So far in 2008, the government and the Federal Reserve System are on the hook for as much as an additional $7.7 trillion....

...America's biggest banks are going bust or have gone bust. Little banks are toppling each week. There is no end in sight.

The government, which is running a trillion-dollar deficit this fiscal year, is adding ever more debt to save the favored banks. It is buying the banks' insolvency in the name of future taxpayers.

The buyers of Treasury debt and the Federal Reserve System are funding all of this. They think future taxpayers will pay them back. I don't. I think there will be a tax revolt: mass inflation.

Meanwhile, every dollar that flows into the Treasury does not flow into the private sector. The nationalization of insolvency continues. The authority of make decisions regarding who will get the shrinking supply of private savings that the banks have not already absorbed to keep their doors open have been transferred to a new generation of capitalists, people who live in fear of government regulators, not depositors.

The year 2008 has seen the end of free market financial capitalism. Forget about efficiency. Forget about stable economic growth. Forget about everything except solvency as defined in fiat money....