Stealing from Each Other: How the Welfare State Robs Americans of Money and Spirit
Houston, Texas (PRWEB) January 12, 2009
In light of Bernard Madoff's monumental Ponzi scheme, the policies and inner workings of American finance are under renewed scrutiny. Increasingly apparent is the nature of the modern American welfare state, and the economic damage this entails. This enormous problem, and the reforms needed to fix it, are thoroughly examined in Edgar K. Browning's newly released book, 'Stealing From Each Other.'
At 8:30 AM on December 11, 2008, Bernard Madoff fell from grace. A legend on Wall Street, Madoff founded and managed the sixth largest market maker firms on Wall Street, with liabilities of over US$50 billion. The damage from this incident is broad, layered, and massive; Bernard Madoff admitted that the entire firm was essentially a house of cards, built up as a giant Ponzi scheme. Foreign banks stand to lose billions of dollars, and numerous investors will ultimately be found to have received illegal funds from Madoff's firm, funds borrowed and traded on paper while dodging already-loose federal regulation, and thereby grossly inflating the actual capital involved.
Flags started to go up by financial analysts years ago, with memos and notes circulating that Madoff's firm was essentially a massive unregistered hedge fund, carefully designed to dodge federal regulations, and generating a supposed wealth far greater than such a fund is theoretically able to generate. Madoff paid investors with money that didn't exist, borrowing from Peter to pay Paul, in a mammoth fraud scheme that eerily parallels the American government's own fiscal policies.
Madoff's actions come at a time when America's own fiscal policies are designed to transfer wealth from those who have earned it, to those who have not. The modern welfare state, the propensity of the government's financial systems to distribute wealth based on a flawed concept of "income equality" is thrown into sharp relief in Professor Edgar K. Browning's fascinating recent book, "Stealing from Each Other: How the Welfare State Robs Americans of Money and Spirit". In a world of massive financial turmoil, through economic failure or enormous fraud systemic throughout the misguided financial markets, the modern "transfer" state is sick and limping. Massive changes must be carried out for America to survive this sort of rampant redistribution, and never have the facts been so brutally telling as now. With this release of Browning's analysis, Americans with any level of involvement in the nation's fiscal structure can see a clear picture of how systemic the problem is, and what crucial steps must be taken to fix it.
Browning's analysis of this sad state of fiscal affairs is cutting, prescient, and a call to arms for all who believe that Americans who blindly live at the expense of other Americans will lead to a drowning economy. With America's welfare systems spiraling out of control and the economy drowning in bad debt, there has never been a more crucial time to analyze these destructive policies.
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