Now that our government has squandered half a trillion dollars bailing out the corrupt. And having taken on 7-60 trillion dollars in liability, (who knows the real figure). We are no closer to solving the Financial Crisis than we were last September.
Our wise government is now considering spending another few trillion dollars on a “stimulus” package. That money will be thrown down the rabbit hole along with the money our government has already tossed down there. Even Keynesian economists are saying that the money won’t be used for two years. Thus the “stimulus” won’t happen for two or more years. The fallacy of Keynesian economics notwithstanding.
Every commentator that I have heard says that the bill is loaded with pork. Do we really believe that a pork picnic is what we need to stimulate the economy? What are our leaders thinking?
They are using this financial meltdown, (one that they created), to seize control of the economy. As they flummox and blunder they will say the problem is that they need more control. That control will then lead to a lowering rate of growth. The Elite’s power will be greatly expanded… If anyone thinks the Elite will ever willingly cede that power back after our “crisis” is over also believes that Tim Geithner made an “honest” mistake on his taxes. By the way… to you folks who believe that… call me about a good deal on the Tappan zee bridge…
The only thing the government can do to actually stimulate the economy is to cut taxes. The effect is immediate. Won’t contribute to hyper growth later leading to a more violent cycle of upturns and downturns. And will bring real growth.
By real growth I mean long term sustainable growth in GDP. Not fictional growth that appears by government spending. When government “creates” a job, say counting the points on Maple leaves, the job is paid at the expense of the taxpayer. You and I are the Taxpayer, we have less money to spend on what the government sees as non essentials, like food, clothing, housing, etc… Every year the “created” job must be funded through taxation. The job never pays for itself like a private sector job does. It simply exists at the cost to you and I. What is not seen is the spending you or I would do with that money.
The best way to fix the financial crisis is to let the chips fall. Let Bear Sterns collapse. Let the Wall Street Elite lay in the bed they have made. You and I don’t want to sleep in it. But, the government is tucking us in right now.
Have the government, through the FED or other suitable agency, by new loans. Then the functional rest of the economy can continue to buzz along. The cost in the near term wouldn’t exceed a trillion dollars. As the financial sector shakes off it’s troubles it will take over from the government the funding of our economy through loans. Meanwhile the government, (you and I), will have good M2 and M3 money. We will get our money back with interest. The investments will grow and when they mature the government, (you and I), will not take a bath so the Financial Elites don’t have to.
The last pill the Elite should, But will not, take is a thorough investigation into the failure of our government regulators in not stemming this hemorrhage before it got to this level. They have failed in the case of Madoff, (is he in jail yet), and the derivatives market to name a few. The government is up to it’s eyeballs in the mess. But they keep pointing their fingers everywhere else.
Hey, guys, when you point the finger at someone else… three fingers are pointing back at you…