This is a repost of a post I wrote almost exactly a year ago. Glenn brought this up again a day or so ago, and I agree that this is all very likely. Here is what he said on his radio show:
“PAT: And they seem to be setting up exactly what happened in the Weimar Republic to finally turn that situation around.
PAT: And that's after the hyperinflation, what saved Germany? They valued land. They went to a land standard and that's what -- they burned the rest of the money and they based it all on land and what is the Federal Government doing here now? But taking over all our property.
GLENN: They're taking the property. They're --
PAT: 98% of all new mortgages.
GLENN: They've got all -- 98% of all new mortgages are underwritten by the Federal Government. You will become a renter to the Federal Government. If there's any way you can pay off your house, you should pay off your house. And I know people will say that's nuts, but I'm telling you, you've got to own things, because that is what they did in Weimar. They just took it. I don't know if you're going to be able to keep it. We've never been in this situation before. Very few countries have and none of them have come out the other side. That's how dire this situation is.”
The United States Government owns 30% of all land in the United States right off of the top (see map). But more than that, Fannie Mae and Freddie Mac own half of all outstanding mortgage debt or about $6 Trillion worth. Harder to get a handle one is how much of the still remaining mortgage debt is owned by banks that by virtue of receiving TARP money are run by the Government. If the bank that you owe your mortgage payment to is run by the government then your mortgage is basically government owned. The States also own land, one of the guvernator’s ideas in Caulifornya was to sell State parks to the Fed. As State budgets get worse there may be more who start to think that is a good idea. I think it would be safe to say that very near 50% of land in this nation is owned by the Feral Government. So? In 1914 Germany abandoned Gold as the backing for their currency (we did it in steps finally abandoning it completely in the seventies) and began printing money based on “Trust” in the Federal Government (like the dollar) this was called the Papeiermark. After WWI Germany was forced to pay reparations to the rest of Europe. To pay their debt they printed money…well like we are. This caused inflation to be so horribly bad… well here was the joke: “Grandma put her money in her grocery basket to go to the store, a mugger stole the basket and left the money.” Soon this currency was totally worthless (this is what happens when you put your trust in the government). Along came Hjalmar Schacht. He was basically the Hank Paulson/Tim Geithner of Germany. What the Germans did to get their currency under control was to create a new currency, the Rentenmark. The new Rentenmark currency was based on Real Estate. Horace Schacht mortgaged all the land owned by Germany and created money with the mortgaged land. He sold the German land. He mortgaged the house. He sold the farm. My personal opinion of Schacht was that he did what he felt he had to do given the situation he was placed in. It did work, but at what price? So…Germany owned a lot of foreign countries a lot of money…and they printed money as fast as they could…to pay their debt…causing their money to be worthless…so then…because they already owned a lot of the land in the country…they mortgaged all the land they owned…and made new money. Hey wait a minute… we are printing money fast enough to make ink worth more than oil…and we owe foreign countries a lot of money…and our country owns nearly half of land and homes in the country… hmmm Beck mentioned this whole scenario on his show one day a month or so ago and I have read up on it since then. My previous theory was that he would run our debt up so much we would go into a world bankruptcy court and and as a condition of accepting a world currency and losing stature in the world our debt would be written off. Obama would sell a Global Currency and Global Government to the American people by saying that we are so screwed we HAVE to accept the global currency, . But this is even more plausible. Using this idea it also begins to make sense why we have laws preventing oil drilling even though there is a lot of oil left in our country we are just sitting on. Ditto for coal mining, and many other resources. IT MAKES THE LAND WORTH MORE. It has to be something similar to this, because no group of even marginally sane individuals could spend the kind of money they are spending without any thought to what will happen. Not that our politicians are sane. So what is the worst that could happen. Zimbabwe could happen that is what. All of the information is readily available so here is what happened in a nutshell. In the 80’s and 90’s despite droughts Zimbabwe had a decent economy. It was largely agricultural but the country also had large mineral deposits which were lucrative. They had adequate electricity and transportation was good. Then the new ruler of the country decided to “spread the wealth around” and take all the land from the producers and give it to local “oppressed” people and the agricultural output fell over 50%. To help the problem the Government created they began to regulate, well, everything. As a result “Atlas Shrugged” Now they have to buy electricity because they cannot fix their equipment. Foreign investment is gone. Interest rates are well north of 200% (fantastic but true) and unemployment is around 80%. It is the Obama model. It is the change I believe they believe in.-Kook