The 1990s were a time of strong economic growth, low inflation, and a surging stock market that became known as the dot-com era. It was a brave new era in which fledgling dot-coms, that nobody had ever heard of, could pay $2 million for a Super Bowl commercial.
In the middle of the economic boom, President Bill Clinton began his National Home Ownership Strategy. It was a program to provide assistance to help everyone attain the American dream of home ownership.
To boost low-income and minority-income ownership, though, Clinton used 100 executive actions to create new "flexible" mortgage underwriting guidelines. Banks were forced to expand their quotas of risky loans to 50 percent of their portfolio.
By the end of the decade, dot-com capital dried up. The Glass-Steagall Act, that had protected banks since 1933, was repealed. The Federal Reserve ruined banks that resisted being saddled with risky loans preventing their ability to expand lending and deposits. What happened next was almost an exact replay of the Great Depression.
By 2007, Fannie Mae and Freddie Mac owned over $1 trillion of subprime, uninsured, low quality loans. Lower-income folks, who really could not afford their mortgages, suffered mass foreclosures and bankruptcies. Banks owned $700 billion in abandoned houses with no money to lend and taxpayers were on the hook for $7 trillion.
The Great Recession, as it became known, was the worst economic disaster since the Great Depression. The stock market collapsed. Banks collapsed. Housing prices collapsed. Jobs collapsed and it wiped out trillions of dollars in household wealth.
What Democrats want now is another Great Depression that will let them flip our economy from capitalism to socialism. The longer people face extreme financial difficulties the easier it is to selll their decades-old concept that capitalism breeds greed and makes slaves out of the working class while socialism builds communities where everyone can thrive.
“In 2020, the Democrats managed to simultaneously shoulder on America the analog of the 1918 epidemic, the analog of the 1929 depression, and the analog of the 1968 riots.”
Gary Gindler, Ph.D., conservative columnist at Gary Gindler Chronicles
Inflation is never temporary but, for all the decaes between Roosevelt and Biden, free enterprise and competition had succeeded in bringing inflation back to a stable level. But Democrats had no intention of ending inflation. Instead, they compounded the economic crisis with an energy crisis and a border crisis.
Then, in his 2024 State-of-the-Union Addresss, Joe Biden dreamed up the idea that there was no inflation at all but the economic disaster was "price-gouging, greedy capitalists." The idea caught on and Democrats used the power of the press to hammer home the concept of greedy capitalists destroying America,
The opportunity for Democrats to flip our economy to socialism has never been better. This is not an opulent dot-com or pre-covid era. It's a dangerous era of poverty, homelessness, fear, and confusion. The Democrats created it and now many Americans are unable to help themselves and are looking to the federal government for help.
Campaigning on "joy", Vice President Kamala Harris wants a new version of the Home Ownership Strategy. It's another taxpayer-funded plan that gives $25,000 in down payment money to people who can't afford to buy a house. If she is elected, there is a big possibility that the plan will weaken the banking system while increasing public debt, just as it did in the Great Recession.
To end those "price-gouging, greedy capitalists," Democrats are using Kamala Harris to get "price controls." They know their price controls will not be any more temporary than their inflation. And they also know that price controls, specifically price ceilings that set a maximum price that sellers can charge, leads to shortages which in turn requires "rationing" to maintain supplies.
Rationing is accomplished using coupons or other mechanisms to limit consumer access to controlled goods. Rationing robs you of your freedom of choice. But the Democrats are masters of flipping and they will convince brainwashed followers that rationing is good for everybody. Slogans like "Rationing Means a Fair Share For All of Us" will surface.
Yes. The Democrats have set the stage for another Great Depression. A total collapse of our economy is the basic requirement to flip the economy. Sharing is the foundation of a socialist economy. The sharing of equal wealth, equal outcomes, and equal distribution are the blueprint for the Democrat's socialist economy.
Few people realize, though, how quickly a socialist economy evolves into a communist economy. In sociialism the state is responsible for the "equitable" distribution of goods and resources. But when shortages occur, or they are created, the goods and resources don't make it to the people who need it most. And socialism becomes comminism.
The first lesson the Great Depression taught us is that high taxes for the wealthy ultimately becomes the taxes for everyone. Rationing leads to inferior products and slows consumer demand. As production decreases, the job market fails. Soon farm prices drop and farmers lose their homes and land. Add in a mix of consumer debt and a weakened banking system, and you have another Great Depression.
It took the country a decade to recover from the last Great Deperssion. This time the U.S.A. will not recover from the soup lines and unemployment. Democrats will use the economic disaster to end capitalism and replace it with a brand new era of socialism.
It's your future and it's time to decide between capitalism with a small government by the people or socialism and total dependency on a big government for survival.