Typical government growth. Print money, act like a savior, don’t produce, take to give, create absolutely no value in distributing money.
Take for example the fact that for the first time in history, the highest revenue for states has been federal aid. This is unsustainable growth and will redefine the role the federal government plays. This means that the growth of government is imminent and there will be less freedoms for state constituents. I also see this as irrational and illogical spending practices; how can you spend money that comes from taxpayers’ pockets (the federal government) which will go back into the pockets of taxpayers (the states and its citizens) this doesn’t make sense to me – it just seems so circular and redundant. It will actually take more money from the pockets of those forgotten men and women paying for this spending bonanza, since many of those payments will be in the form of welfare checks or redistribution, to those who don’t pay taxes to begin with.
In a historic first, Uncle Sam has supplanted sales, property and income taxes as the biggest source of revenue for state and local governments.
The shift shows how deeply the recession is cutting. Federal stimulus money aimed at reviving the economy and a sharp drop in tax collections have altered, at least temporarily, the traditional balance of how states, cities, counties and schools pay for their operations.
The Democrats on Capitol Hill can’t get enough of their spending habits. They are trigger happy at the printing presses and believe that doling out more “Benjamin’s” will solve all the ails of the volatile U.S. economy. The sad fact is that this spending, which will require repayment somehow, by future generations, will only further drive down the economy in the long run. This is Jimmy Carter redux and we will see a public sector that is out of control, squashing the private sector and stagnating our economic growth (those things that actually do produce and retain value). Our GDP is estimated to grow at one of the slowest rates worldwide, much like Japan in the 90′s and we could see ourselves sitting at a DOW max of only 9K for years to come. This also doesn’t take into account the inflation that will ensue due to this irresponsible lending of taxpayer money. My guess is we will be waiting in gas lines miles long and will see interest rates close to 17% in the next couple of years…
Lie #1. “The financial crisis is behind us.”
Lie #2. “The government is fixing it.”
Lie #3. “Big banks are too big to fail.”
Lie #4. “Your insurance is safe and guaranteed.”
Lie #5. “The economy is starting to recover.”
Lie #6. “Your stocks will come back.”
Wall Street and Washington say the financial crisis is behind us. But the International Monetary Fund (IMF) has just trashed that theory faster than a high-speed paper shredder.
They say big banks can’t fail. But behind the headlines, key Fed officials are now admitting that the “too big to fail” doctrine is, itself, failing.
I interject here to point out that Minneapolis Fed’s Gary Stern actually sounded the alarm long before “too big to fail” became “too much to handle.” But since when does the Fed listen? Even amongst itself? Pathetic.
The reality here is that the Fed does not and cannot have a handle on the very economic unraveling it created. It’s impossible. Meanwhile, the respective PR campaigns of the White House, the Treasury, and the Fed are hard at work convincing you otherwise. Everything is OK. We’re fine. The stock market is on a roll. Hey, don’t look over there, check out Susan Boyle!
It doesn’t matter whether they tell us the truth or not (I think we know they’re full of it anyway) because we’re still suffering. That should be proof enough that this rally is a lie, this recovery line is a lie, and all these rainbows and unicorns are manufactured to keep “crowd control” from becoming a national security concern.
Could you imagine what would happen if America collectively woke up one morning and realized that their “wealth” was really just worthless paper?
The more the Fed and the government prints the more worthless that paper becomes. We are experiencing a bear market rally based on voodoo economics, lies, and spin. You can only cover something up for so long until reality and the truth shines through.
So here are some examples of some additional spending by the government:
Democrats in the U.S. House of Representatives will seek passage in coming weeks of $94.2 billion in emergency money for the wars in Iraq and Afghanistan and other programs, including $2 billion more to prepare for an influenza pandemic.
House Appropriations Committee Chairman David Obey, outlining the legislation for reporters, also said the legislation would include $2.2 billion to fund some C-17 airplanes for the Pentagon. But it will not address future purchases of a refueling tanker airplane sought by the Air Force.
I thought liberals were for peace and against war? What were all those “coexist” bumper stickers about? I guess war is ok if it’s a liberal president.
The Obama administration wants the United States to spend $63 billion over the next six years to fight global diseases and provide more aid for prenatal and postnatal care, children’s health and fighting tropical diseases.
“We cannot fix every problem,” Obama said in a written statement Tuesday. “But we have a responsibility to protect the health of our people, while saving lives, reducing suffering, and supporting the health and dignity of people everywhere. America can make a significant difference in meeting these challenges and that is why my administration is committed to act.”
How about we worry about our own country while Americans are suffering and are jobless before spending more money abroad for other things that will not stimulate our economy.
The initiative, announced by Deputy Secretary of State Jack Lew, continues an effort begun under President George W. Bush to fight HIV/AIDS, tuberculosis and malaria.
But I thought Obama was going to be the anti-Bush? I guess some of what he did wasn’t all that bad eh? Bush is very well liked and respected in Africa – as a world leader, he has provided the most aid to that continent. I believe he spent too much money, so I do disagree with some of it, but I think that it was a nobel cause and he did it for the right reasons.
We also continue to pay for and subsidize banks, who are continuing to ask for more money this week. Bank of America is doing so poorly, there is a chance that it may be dropped from the S&P 500 index. The subsidizing is unsustainable.
The results of the government’s stress tests on banks, to be released in a few days, will not mark the beginning of the end of the financial crisis. If we are to believe the leaks, the results will show that there might be a few problems at some of the regional banks and Citigroup and Bank of America may need some more capital if things get worse. But the overall message is that the sector is in pretty good shape.
This would be good news if it were credible. But the International Monetary Fund has just released a study of estimated losses on U.S. loans and securities. It was very bleak — $2.7 trillion, double the estimated losses of six months ago. Our estimates at RGE Monitor are even higher, at $3.6 trillion, implying that the financial system is currently near insolvency in the aggregate. With the U.S. banks and broker-dealers accounting for more than half these losses there is a huge disconnect between these estimated losses and the regulators’ conclusions.
More voodoo economics and lies to the American people – this is the biggest ponzi scheme our nation has ever witnessed!
Democrats aren’t the party of Wall Street?
The Fed has also announced that it will buy up more U.S. Treasuries – what on earth is going on? Do we even live on earth anymore?
Would you lie for the greater good or would you tell the truth and be honest about the way you conducts business. I think that these moral hazards and cover ups are what got us into this economic crisis among other outside factors. So what would covering up something else really help? If the data is bad why continue to cover it up and prolong the inevitable?
I know that prolonging the inevitable is favored on Capitol Hill these days, but in my opinion that just makes things worse, suckers more people into the failing financial market, and makes for a worse collapse. Let it go and give us the real facts!
Rick Santelli calls out one of his colleagues at CNBC who offers up the question as to whether or not the media should cover up the truth behind what’s going on in the financial sector for the greater good.
But, as I stated above, is that really for the greater good or is it just for the good of a political agenda and money in the media’s pocket? After knowing what recently occurred at an NBC meeting with Zucker and Immelt exclaiming that CNBC has been too harsh on the President and has criticized his policies too much recently… I can only take what they say at CNBC with a grain of salt because there may be a conflict of interest; like saving their jobs:
I say move as far to the left as possible Barney – this will ensure the change of power from liberals to conservatives in 2010 since progressives have horrible policy ideas and almost always overreach.
It’s also quite amusing that Barney Frank of all people is commenting on not being part of the Wall Street Democrats, the same Barney Frank who received the most money from the sub prime debacle and had corrupt dealings with Fannie and Freddie… Barney Frank seriously needs to consider seeing a psychiatrist ~ He is a pathological liar.
When will the corruption end!? I love how this guy being interviewed tries to okay this. This is just another example of the limousine liberals and the “X for me, but not for thee” philosophy.
