Feb 14 2009
It’s Done – Our Economy Is Wrecked For At Least A Year
Spendulus has passed. America as seen the largest theft of money by ideologues in its history. No war ever caused this to happen. And the so called ‘stimulus bill’ has very little real stimulus in it. What there is is not enough to turn the economy around, and the spending doesn’t really kick in until the summer of 2010 – at which time the mood of the country should be just about right to evict the Dems from Congress and repeal this mess before it can do the long term damage the CBO predicts it will do.
We have a chance to stop this before it becomes too bad. The money cannot really be spent that fast – as we in the opposition have been saying for weeks. My view is the GOP just needs to put up a “US Debt Per Person” sign on some websites to make the point that will need to be made for the coming months. (If someone has one let me know).
What will be interesting to see is what else does Congress and Obama have to do now – right? They have raided the treasury to a historic level. The coffers are all empty (for decades to come). Theoretically they should sit back and watch the magic happen!
But will they? I find it interesting that in Congress more Dems voted against this bill (7) than Republicans voted for it (3). By the Fourth of July, when the job market still sucks, some Roosters are coming home to Roost on the Democrats.
Update: Too good sources for what is in the are bill here and here – don’t be surprised if you find absolutely nothing in it for you! Seems lots of lawyers (Inspector Generals) are going to do well.
I agree that this package is parasitic in nature but many economists actually seem to predict a second half rebound (not because of the passage of the pork bill) but in spite of it. The bigger question is how much inflation we will “enjoy” as a result of this fiasco and when it will rear its ugly head. That said, there is a very good chance that this package will create serious potential drag on the recovery by crowding out capital that would otherwise go to productive uses instead of governmwent waste.
The public will know how bad this stimulus is when the new budget is proposed. When those earning $140,000 are taxed at 50%, those who earn $250,000 are taxed at 65%, and a millionaire tax brings it up to 70% for the very top earners. The “poor” say who cares? They will soon find out that no growth=no jobs. Then we will see who cares.
One more little point. Revenue, will the government loose 20%, 30% maybe 40% in taxes they collect? I know that I will be paying no taxes next year, and neither will my daughter. It is a measly $10,000 but it is $10,000 that the government will not be able to give away. I think the tax counters are going to be in shock.
It might be wrecked for more than a year. According to Fox:
Trade restrictions are what led to to the Great Depression.
crosspatch:
I read somewhere that the G7 is saying that protectionist measures are not acceptable. Even now the Europeans and Canadians are threatening to respond in kind. Not a good idea, trade wars, hyper inflation, stagflation. The Anchoress is right, Obama is Carter on speed.
As important as the issues are to us here, the long tail effect will ripple all around the world to small third world trading partners and outsourced low tech / no tech jobs and exporters of rugs and other goods we buy.
We are such a big part of the world economy when we get a headache they get and upset stomach and the runs.
I doubt spendulus will do anything. The problem is the same as was the case in 1929, a crisis in confidence. And one thing for sure, Obama and his fellow ideologues does not exude confidence.
The Dems are on a roll! This is only the first of the god awfuls they have in store for us. Look for the Hush Rush legislation to be next. Then it’s the census rigging. Maybe they could outsource the census taking to ACORN. It looks like the fellow that was so indespensible that we had to overlook his “careless mistakes,” is incompetent for his job. Then we have a bunch of Clintonista hold over fanatics lined up to run the CIA and other sensitive agencies. And the anointed one is going to pull most of the FBI agents off terrorist investigations and put them to catching Republican “crooks, ” while he arranges to import thousands of Palestinian “refugees,” to join the hundreds of thousands of Muslim fanatics from Somolia that Bill Clinton brought in. (200,000 to Atlanta, God only knows how many to other cities.) as if we don’t have enough of those crazy bastards over here already. Don’t expect them to go after any Dems because they never have in the past and won’t do it now. The reason Clinton fired all the US attorneys when he took office was so he could drop charges against all Dems that were pending, including Clark Clifford former US Atty Gen. who facilitated the middle eastern potentates looting of the US banking system in the BCCI scandals. My advice is to dig you a fox hole and stay in it and don’t stick your head out until it’s over.
If I had been President, this is what I would have done to give the American people confidence that this government is serious.
I would have cut the heck out of the budget that has yet to be passed from last year. Just like the families have to do today.
Then I would have rolled out TARP ll, helping the banking and housing market.
Then I would have cut middle class taxes, business taxes and helped the unemployed by extending insurance, medical help.
Then I would have been patient and watched.
Added to the 3rd idea I would have spent money fixing all the military needs for the next deployment and some infrastructure.
[…] is something I predicted back in February of this year: Spendulus has passed. America as seen the largest theft of money by ideologues in its history. No […]