Hyper Inflation in the US?
We are headed for serious inflation, possibly hyper inflation. We are in a serious situation. What do the Dems and Obama decide to do? Waste 800 billion without truly stimulating businesses or the economy:
Congress is confident it will send President Obama a stimulus bill to sign by Monday’s holiday. Unless something unforeseen happens, what lawmakers will put on his desk is a $789 billion waste….
Harvard economist Robert Barro calls the legislation “probably the worst bill that has been put forward since the 1930s.”
“I mean it’s wasting a tremendous amount of money,” he said in an interview with the Atlantic. “I don’t think it will expand the economy. . . . I think it’s garbage.”
• It overflows with pork — $2 billion to ACORN, an anti-capitalist “community” group that’s been accused of voter registration fraud; $30 million to restore wetlands and save the endangered salt marsh harvest mouse in the San Francisco Bay Area (a Nancy Pelosi project); another $1 billion for a Prevention and Wellness Fund for education programs on sexually transmitted diseases.
Tens of billions will be spent on high-speed rail lines, which will be of little practical use but of great political service, and projects to expand high-speed Internet access in rural areas.
There’s so much special-interest spending in the bill, says House Republican Leader Rep. John Boehner’s office, that the dollars left over for direct small-business tax relief amount to only “about one-third of 1% of the total bill,” a mere $3 billion out of a $789 billion package. Yet small businesses do most of the hiring in this country.
• The bulk of the spending comes not right away when the economy needs a boost, but in future years. This is typical. Legislative attempts to rescue the economy have been late in the last eight recessions going back to October 1949, when Congress passed an anti-recession bill just as the country was emerging from a 12-month downturn.
• By releasing $800 billion in new welfare spending over the next decade and undermining current work requirements, it will largely undo the successful 1996 welfare reform. Once again, Washington will be paying bonuses to states that expand their welfare rolls. In what world is increasing dependency on government a stimulus for the private economy?
• States that have spent recklessly for years will get bailouts when they should instead suffer the consequences of their actions. The compromise bill includes $54 billion to hand out to state and local governments, a perverse reward for elected officials who can’t control their spending.
What’s missing from the legislation is just as significant as what’s included.
There are no tax cuts to boost investment, just a trifling $13 in tax relief per week that will appear on paychecks in the spring.
There’s no real effort to boost energy production.
There’s no meaningful defense spending.
Here is a video from the Wall Street Journal saying that this stimulus bill is so bad, the US will not have an economic rebound until 2010.
This monstrosity of earmarks and expanded social spending will send our economy over the edge. Watch the video below from the Wall Street Journal. We should cut all taxes for businesses and individuals. Instead of doing what is right for the country, Obama has to keep up the class warfare. If he was truly a great leader of change and non-partisanship, he would do something radical like send this bill back to Congress to be redone.
As the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.
The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.
The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the “2008 Financial Report of the United States Government” as released by the U.S. Department of Treasury….
“Shy of the government severely slashing social welfare programs, federal deficits of this magnitude are beyond any hope of containment, government or otherwise,” he said.
“Put simply, there is no way the government can possibly pay for the level of social welfare benefits the federal government has promised unless the government simply prints cash and debases the currency, which the government will increasingly be doing this year,” Williams said, explaining in more detail why he feels the government is now in the process of monetizing the federal debt.
“Social Security and Medicare must be shown as liabilities on the federal balance sheet in the year they accrue according to GAAP accounting,” Williams argues. “To do otherwise is irresponsible, nothing more than an attempt to hide the painful truth from the American public. The public has a right to know just how bad off the federal government budget deficit situation really is, especially since the situation is rapidly spinning out of control.
