Adi12982
DIS Veteran
- Joined
- Oct 3, 2006
And think about how ridiculous "the intent" of this "stimulus" package is. Out of one bubble in 2001 and right into another fueled by a lax federal reserve and an incredibly cheap money supply. So we're left with a housing market that is as bad as that in WW II, a savings rate that equals that of the Great Depression, trade deficit, budget deficit....I mean, what more can the government do to mess things up? This is pure politics....nothing more. They're all trying to out-do each other now..."Did I say 70 Billion for the stimulus....I *meant*, 700 Zillion dollars!!"
Now they're going to print even more money, even though the money supply has increased by 15% last year alone (inflation anyone?), add to the deficit and send $800 to most Americans and imply it's "Un-American" to pay down your debt? Insanity.
Keep in mind, that there are estimates that the first go-round of this type of plan did very little if anything to spur on the economy. Some estimates are that only 1/3 of those rebates were spent in a timely manner. In 2001 we had 1.6 Trillion dollars of consumer debt and just six years later that number is 2.5 Trillion dollars. A good deal of that will go to paying down credit card debt.
Why is it that our Free Market Capitalist President is all for creating bubbles but can't let the market work things out when they burst? We either take the pain now, or take much more pain later. I'd prefer taking it now and getting it over with.
And then when the each American either spends, saves or pays down debt with a tiny bit of debt with that $800....then what? I hope that Stimulus Team is working on that. Maybe they can come up with a Super-DUPER- Stimulus plan!!
The SCARIEST thing, you didn't even mention. . . the Congress has the CONSTITUTIONAL authority to make create/print the money. Instead of doing that the power is in the hands of the federal reserve. And you think, hm, FEDERAL must be a government agency, NOPE - it is run by private banks, people, interests (not even my point, but still a bit scary to me). Anyhow, when congress needs money for stuff it BORROWS money from the federal reserve - putting us further in debt, when they could just print it themselves (as per the constitution). Printing more money without backing (like gold) would increase inflation but that is happening anyhow, but if congress did it versus borrowing money the reserve is just going to print, our national debt wouldn't increase!