Posted by: rotenochsen | November 26, 2008

IT LOOKS LIKE THE CHANGE TAXPAYERS GET WILL BE COINS IN OUR POCKETS!

Tuesday, November 25, 2008





Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” —Ronald Reagan

THE WAY THE CONGRESS AND THE TREASURY DEPARTMENT ARE GOING ABOUT THROWING GOOD MONEY AFTER BAD REMINDS ME OF THE NORWEGIAN TRAITOR QUISLING WHO BETRAYED THE NORWEGIANS TO THE NAZI OCCUPIERS, BECAUSE HE SAID HE BELIEVED IT WOULD BE BETTER FOR THE NORWEGIANS IN THE LONG RUN THAN TO FIGHT THE GERMAN OCCUPIERS.

President-elect Barack Obama wants to project fiscal restraint even as his economic team assembles a massive recovery package that could cost several hundred billion dollars.
A day after introducing the captains of his economic team and promoting a giant jobs plan, Obama on Tuesday was to lay out his budget belt-tightening vision. The dual images(big spender and disciplined budget watcher)were designed to give both political and economic assurances to the public, the Congress and the financial markets.

Obama’s economic team embodies what at first glance seem to be mutually exclusive goals.Save the economy and spend,spend, spend tax payers money!

Timothy Geithner, Obama’s choice for treasury secretary; Lawrence Summers, who will head the National Economic Council, all have links to Robert Rubin, who as President Clinton’s treasury secretary pushed for a balanced budget.
But all three will also be part of an administration that will drive deficits to new heights with an economic plan designed to save or create 2.5 million jobs( most will be govt. created and govt. controlled), and redirect the economy over the next two years. Economists from across the political spectrum, including some who have served as informal advisers to Obama, have put the size of an economic recovery package as high as $700 billion over two years.Considering that the a few months ago Henry Paulson gave $700 billion in taxpayers money to help taxpayers aid their “neighbors” who could not pay their mortgages, it would seem the estimate is low!

AS bizarre as it may seem, CitiGroup has announced that they have to lay off thousands of employees worldwide, but that they still will pay 500 million dollars to have their name on the new New York Mets stadium.
These are the same directors and officers that will receive taxpayers bail-out monies to the tune of a guarantee loan of $306 billion!

This fact was announced by a joint statement issued by the Federal Reserve, Treasury Department and Federal Deposit Insurance Corp.this week.
The deal involves Treasury injecting an additional $20 billion in capital into Citigroup. Citi had already received $25 billion in aid from TARP.

The Bush Administration surprisingly, said rescuing the battered bank was imperative to stabilizing the financial system, and ultimately putting the economy back on track. In my unhumble opinion, he is just delaying the inevitable debacle until Obama takes over the Oval Office!

This action was also cheered by Senator Schummer of New York, and I begin to believe that the Government is bailing out their New York friends and benefactors more than they are trying to help the American people.
The “fat cats”, who just a few days ago were poised to leap out the windows of their corner offices. Can now breath deeply and exhale a sigh of relief for their friends in Washington have come to their rescue! Maybe they should invite a failed mortgagee over for Thanksgiving dinner as a token of thanksgiving!

How can it be a good thing, when the Congress and the President print worthless money to give to failing enterprises(in this case Banks, Mortgage Houses and later Detroit auto) without demanding a radical reshaping and structure of the way they run their business, and whom continues to show no signs of restraint!

During the campaign, Obama proposed a $175 billion stimulus package that included infrastructure spending, tax credits to small businesses for hiring new employees, targeted tax credits for middle class families, investments in alternative energy and aid to local and state governments.
Democrats now say the package will be much larger. Sen. Charles Schumer put the figure at $500 to $700 billion and House Speaker Nancy Pelosi said it would be “in the several hundred billion category,” making it one of the largest spending bills for economic recovery since the New Deal.
Obama Senior Adviser David Axelrod wouldn’t put a dollar figure on the package, but he said on “FOX News Sunday” that the plan “has to be big enough to deal with the huge problem we face.”

And guess who will have to pay for all of this so called “stimulus”! There is only one way to get the money–from the taxpayers unless they want to continue the printing of worthless money!!!

 

 
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Responses

  1. The current Credit Crisis bailout is now the largest outlay In American history.

    Jim Bianco of Bianco Research crunched the inflation adjusted numbers. The bailout has cost more than all ( italics added) of these big budget government expenditures – combined:

    • Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
    • Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
    • Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
    • S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
    • Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
    • The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
    • Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
    • Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
    • NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

    TOTAL: $3.92 trillion

    Or to put it in a very personal way

    Bloomberg calculates the total amount the taxpayer is on the hook for is $7.76 trillion, or $24,000 for every man woman and child in the country

    • The GAO estimates that unemployment may exceed nine percent by 2010, and the Democrats are proposing to print almost a trillion dollars to distribute to their constituencies, ostensibly for “economic recovery.” If you think that’s a big bailout, keep in mind that from 1919 to 2006, no government bailout exceeded the $8 billion capital infusion by the Fed during the 1986 savings and loan crisis. That’s eight billion versus one-thousand billion. One can only surmise how much inflation it will take to absorb the distribution of all that cash.


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