Posted by
bobcat on Sunday, March 15, 2009 9:06:01 PM
Trying between hoping, thinking, screaming, or scheming I cannot find a silver lining in the future economic conditions in America or for that matter most of the World that is connected to whatever happens with the direction postulated by the current Administration. Consider the fact that we got here by an explosion of credit to too many unworthy recipients, being the ability to repay. So what is the loudest voices from the left, Barney Frank , President Obama and his few surrogates confirmed saying in the press; stuff the Banks with cash and throw it at somebody! Never mind the banking world works only when the customer actually needs and has the ability to repay the loan...by their account they cannot differentiate between grant via government and loan by taxable business entities. Take into account the unemployment numbers continuing to exhibit job destruction in ever growing percentages globally.
Add in that President Obama is now daily flip-flopping through the catastrophe to it's not so bad economic menu when he does his most every 24 address, the talk of a Stimulus II, the Chinese open question as to the credit value of American debt, the CBO warning of a credit downgrade, and the G20 this weekend treating Secretary Geithner as though it was his wake...so sad. It would take a better salesman to convince the sclerotic economic acclimated Europeans to go down a debt to GDP above 3% more than a plea from across the pond for our domestic spending fantasies to break with their own limitations to nowhere. Given the "transparent 10 year budget" proposal that is currently scored as 'optomistic' and leaving a baby boom retiring society currently incurring a personal account x01K meltdown, that for the fortunate that even own what's left of such accounts, is forcasting a national debt of $23 Trillion in 2019 VS our present $10 Trillion. At the current 3% interest rate that amounts to $300 billion in interest payments annually, adjust that to the future RISK downgrade, and the payment does a subprime wammy to the interest level upward, ala Jimmy Carter. Remember what Ross Perot said about a "sucking sound from NAFTA", he got that wrong, but the coming sucking sound will be the debt payment that eats the entire American budget because of Obama's spenditis for social cause; the Stimulus is going to OUR creditors. President Obama in a contracting economy with policies that are scaring money to any elsewhere is spending or at least legislating the borrowing of such monies for what, toilet paper and toothpaste...our trade partners looked at Sec. Geithner that way this weekend. Even this years budget proposal of $3.6T is what a $20 Trillion economy would normally find a stretched reality. This budget is calculated by the Treasury tax collecting $2trillion from an anemic economy going further into the hole or at best stabilizing sour, with wind chimes of $4Trillion in government spending, can you tell the difference between real TAX dollars collected VS borrowed dollars on the hook,(fungible) ?...dreamers from MGM would love these numbers. The Chinese after 2 decades of more capitalism than socialism economically by way of internal savings and export wealth gathering have a $1.2 Trillion reserve, which most of Asia and other regions too are trying to borrow. In this down turn with exports not generating much new profit money, where oh where is there a deep enough pocket to materialize to even offer America Obama's desire to borrow those sums? If the woods walker watched a squirrel scampering the thinnest of grape vine to a yet smaller upper tree branch for purchase fears the creature to fall to the ground from those heights; this is a country full of congressional Deadwood twirling the nation to a place that begets more trouble than their bloated budgets and banks lending to the insolvent could ever Hunter S. Thompson write us into if they knew more than an unprepared for college freshman or that squirrel, is going to confront..we are in deep trouble folks.
If California can send IOU's to taxpayers,whos to say the IRS won't send you a packet of garden seeds as a return with a good luck message....just hope if you live in Vermont that you don't receive Utah seeds!