Opinion By Angry Old American – April 23, 2023
In response to your article about rent control, Donna, the government is not in the business of serving the needs of its citizens, or insuring the smooth operation of society. The sole purpose of the Federal, State and Local Governments in the United States is to enrich themselves and their campaign contributors, and grow their Corporation. Both Del Norte County and Crescent City are “Incorporated;” not “Chartered.” Therefore, they must follow the same laws that rule the conduct of private corporations. All corporations are required by law to prioritize profits over all other concerns. Corporations are psychopathic in nature, and commonly disregard ethics and morality in their decision making. Private Corporations questionably have the shareholder’s best interests in mind. Government Corporations lack shareholders. Were you personally issued common stock in your local government? Do you receive dividends from profits made by your local government? Can you honestly say that you derive considerable benefits for the tax money extorted by your government?
Rent Control legislation is another tool to redistribute wealth from the Middle Class to Corporate cronies. Blackrock and other large real estate investment corporations are buying-up entire neighborhoods of distressed housing throughout the United States, and principally in California. How did these homes get “Distressed?” The government concocts insanely unworkable policies for the landlords and homeowners which leads to liquidation, bankruptcy or both. In France, Blackrock’s headquarters was torched by protestors last week because of Liberal Government backed wholesale predation.
Will any of this benefit the renter? Renters could have free rent and it would not matter. The US Dollar is quickly losing its status of “World’s Reserve Currency.” We are headed toward hyperinflation on the magnitude of Venezuela. As a result, US banks, heavily invested in government securities and bonds are failing. Silicon Valley Bank (SVG) and Signature Bank were just the tip of the iceberg, with over 190 other banks in worse financial condition. Why? After the Wall Street Crash that led to the Great Depression of the 1930s, the Glass-Steagall Act prohibited banks from speculating deposits on Wall Street. This was overturned during the Clinton Administration. After the Banking Collapse of 2008, the Federal Government bailed out select banks and corporations that were “Too Big To Fail.” Rules changed, and now banks will “Bail-In” by liquidating their patron’s deposits. No problem you say, my deposits are insured!
On March 16th 2023, Treasury Secretary Janet Yellen said there will not be enough money to cover all depositors in case of a systemic banking failure. Indeed, the FDIC only has 7 cents for every $10 of deposits. She recently ruled out “Blanket Insurance” for all banks. Are we going back to “Too Big To Fail” policies of the past? Will the big Wall Street Investment Banks get bailed out while the rest of us get holding the bag? Only time will tell.
Any way that the dominoes fall, the average Joe and Jane will lose. Government policies cause the problem, and as they were meant to. Those short-sighted chumps and rubes that support such socialist government policies as rent and price controls deserve the slavery and tyranny that result. Price controls of any commodity always lead to shortages!
Just look at Venezuela and other countries where price controls thrive. In the case of food, farmers will refuse to sell their crops, and stores refuse to sell their wares at low cost to the consumer, and instead opt to sell to the Black Market. The result is even higher costs to the consumer. As for rent controls, landlords will probably convert rentals into “Vacation Rentals” or “Bed & Breakfast Inns.” Instead of renting a “Home” by the month, renters will become transients renting a “Unique Vacation Experience” in rooms at ten times the normal cost; on the rare days renters are not living on the streets. The local government would love this scenario because the get additional “Transient Occupancy Tax (TOT)” dollars; as if they are not getting enough money as it is.
Sorry, but there is no easy government solution to our financial woes. We are headed toward another Great Depression that will dwarf that of the 1930s. Buckle your seat-belts because we are all in for a wild ride.
