Tuesday, July 21, 2009

Eliminating Private Leverage with Public Leverage

We have all heard of the unbelievable leverage that flowed through the banking system that nearly brought the worlds economy to it's knees. Now comes a story that shows how America is leveraging up in order to leverage down private industry.

The article talks about the $22 trillion of "collateral" the United States has put up in order to protect the economy. 

When one sees how government/quasi-governmental agencies have bailed out the entire world economy, it is easy to see how taking over the health care system and lowering global temperatures by 1 degree seems entirely plausible.

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