Posted by: rotenochsen | January 8, 2009

words are easy to speak, but deeds are what we want!


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Jan. 8th, 2009 | 03:35 pm

Thursday, January 08, 2009

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

For a few days the president elect has been acting as though he has already taken his place in the Oval Office. Today he is a giving a economic policy speech at a George Mason University in Fairfax, Virginia where excerpts from his speech indicate that he is sounding the alarm bells about the state of the economy.
There is no disputing that the economy is in a recession, but the dire forecasts that Obama and his minions are predicting if the Congress and the people do not go along with his stimulus package of over a trillion dollars, that he says “the private sector cannot do what needs to be done”.

Still, his remarks shed no new light on the details of his plan that could cost as much as $775 billion over two years. He said little about the unprecedented red ink and rising debt confronting the government, even after spending days reassuring the public and Congress that he is committed to tackling long-term deficits after the economy rebounds

The speech essentially called for “dramatic action” as he attempted to convince taxpayers as well as wary lawmakers that “only government” can supply the short-term boost needed to pull the economy out of recession.

He said that his almost $800 billion dollar package, if not passed, could result in “a bad situation that could become dramatically worse.”
Obama warned the unemployment rate could reach double digits and the nation “could lose a generation of potential and promise”. The words were hardly reassuring to an already scared to death public!

The problem I have is not only with his scare tactics but with the whole way he and his supporters want us to believe that printing more money and throwing it into the fires of inflation will result in a sound economy.

We already have a trillion dollar debt! A trillion is a $1 followed by 12 zeros. $1,000,000,000,000! “Let me put it this way.If you had a full time job counting to a billion 9-5 regular work days, and you counted by seconds it would take 3 generations of people to count to a billion.A trillion is a thousand billion.It would take 3000 generations (more than humans have had so far existed) to count to a trillion! Source Wikia

On top of a $700 billion financial rescue, a $17 billion auto bailout and the first $150 billion stimulus (that’s the one approved right before the worst economic crisis since the Great Depression).
So where does it end?
Obama had said Tuesday he anticipates “trillion-dollar deficits for years to come.” But even the cascade of noted economists calling for a big package say the country cannot sustain such deficits much longer.

The national debt already has topped $10 trillion — or $35,000 per person. And the bigger it gets, the more the country has to pay in interest every year.

“In the end, Beijing is gonna become Obama’s banker,” said Peter Morici, a University of Maryland business professor who testified at the auto industry hearings in November. Source:WOKV WEB PAGE

In November with his economic team in place, Obama tasked his aides with assembling an ambitious measure to not only swiftly pump money into the battered economy, but also create 2.5 million new jobs, send a tax cut to the poor and middle class, and make massive government investments in energy-saving and other technologies designed to pay for themselves in the long run.

Some senior Democratic lawmakers put the cost of the package as high as $700 billion, a figure Obama’s team called premature and several Democratic aides said was unlikely.(note from blogger: now it is 800 and when will it stop growing?

One top Democratic congressional official, speaking on condition of anonymity because talks on the economic rescue measure are ongoing, said in November,it will probably cost between $400 billion and $500 billion over two years.
Well even he was wrong and now it is nearing $800 billion! That is more than 3/4 of a trillion dollars, and Obama says “he will only allow funding for what works”!?

The 700 billion seems to have failed to help stop the downward spiral. Will printing more money that will deflate the value of our dollar help? I BELIEVE IT ONLY DELAYS THE CRASH THAT IS INEVITABLE!

There were 171,478,000 people employed in 1998. In 2008 there were 190,221,00 employed. In 1998 there were 4,484,000 16 years or older unemployed and at the end of November 2008 there were 7,336,00 unemployed. This reflects an unemployment rate at the present time of 6.7%. Not exactly depression type statistics, when you consider the population of this Country has grown from 248.709,80 in 1990 to 305,186,613.Source:United States Census Bureau

We have a population explosion that has taxed the economic conditions in all areas due to the increase of spending for immigrants who have not been able to find year round employment , often due to lack of skills, but that still need medical and other welfare services that tax the economy.

Will a large part of the 3/4 of a trillion dollar package go toward employment of these unskilled people in “make work” government programs like FDR’s “WPA.”?

In 1933, another new president faced a collapsing economy, and rallied the nation with similar words:

“This nation is asking for action, and action now,” said Franklin Delano Roosevelt in his first inaugural address.

Seventy-five years ago, FDR began the New Deal. What was truly new – in fact revolutionary – was his conviction that the federal government had a direct responsibility to create jobs, and to pay for them with tax dollars. Is this a FDR re-do?

At the worst point of the Great Depression, in 1933, one in four Americans who wanted to work was unable to find a job. Further, it was not until 1941, when World War II was underway, that the official unemployment rate finally fell below 10%. IN THOSE DAYS THE NATION WAS LED TO BELIEVE THAT UNEMPLOYMENT WAS UNDER CONTROL!
Posted by BILL at Thursday, January 08, 2009 0 comments


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