Subscribe
We all know what kind of website this is, so there is absolutely no reason for me to point out that this analysis will inevitably have a conservative lean. The haters are more than welcome to throw “Neocon” and “war-mongerer!” my way because that seems to be the natural reaction when fighting the partisan fight - I assure you, the liberals should be just afraid as we are as to the long-term consequences of the passage of Obama’s stimulus, among other “creative” plans by the Federal Reserve and the Treasury to kick-start lending in America. It is more like a kick in the teeth to any hope this country had at reasonable economic recovery.
First and foremost, we’ve been hearing for weeks now that plans must be supported, reactions must be quick, and trust must be established between the government and the taxpayer through “transparency and accountability” - Tim Geithner, ever the revolutionary, announced his financial stability program and was even kind enough to provide a website for Americans to keep an eye on his little project. How cute. They grow up so fast, don’t they?
But the reality is that the American economy needs sound, well-thought-out, creative solutions to our financial malaise. Some crackpot scheme pulled out of thin air that involves an insurmountable pile of debt on top of existing American obligations is NOT that sound solution. Forcing a bill bloated with pork and questionable earmarks ($80 million for a new Health and Social Services building? Seriously? How does this help us?!) through Congress, threats from the wicked witch of the far left, and a mysterious midnight release of said unsound “solution” just hours before the final vote leads me to believe that these guys simply have no clue. They are scrambling here. And worse, the world already realizes that America may not be able to keep its promise of economic stability to its citizens without drastic measures that will certainly compromise our already instable currency.
Where will this money come from?
Thin air. Just like the rest of it. And the pressure on the bond market will most certainly push Treasurys off their already precarious position.
The Federal Reserve cannot possibly support any percentage of this beast of a plan, let alone the entire $1 trillion shebang, without making some dangerous adjustments in money supply and policy. The money supply has seen a 30% increase in the last four months and bond markets are testing the Fed to see just how far they can be pushed. These are all ominous signs of what is to come.
Time to turn things around and introduce a truly intelligent solution may be running out, and who do you think will be left holding the bag when the ship sinks?
