The feds want to give people money. They've already cut interest rates to zero - as a practical matter, they can't go lower. And Obama is talking about a new stimulus program of more than $850 billion.How long will Americans ignore that the treasury is being openly looted? Amazing, simply amazing.
The last major stimulus program was $700. So far, only half that money has been skimmed. It takes time to work a hustle of that scale. The money is destined for the accounts of Paulson's friends and colleagues on Wall Street; everybody knows it. Still, you don't want to be too transparent about something like that. You have to pretend that you're not giving away hundreds of billions to the richest people in the country. Instead, you're helping to "recapitalize the financial system." And that takes time. In this case, you have to pretend that you are smarter than the market…that you are putting one over on Wall Street by buying its castaway "assets" at bargain prices. Heck, you might even make a profit for the taxpayer.
Paulson has gotten his hands on only half the money that Congress authorized. He wants to be sure there aren't any Madoff-style blow-ups - at least until the rest of the loot is under his control.
Obama's additional $850 billion sounds like a good idea to most people. People need cash. They're not too particular where it comes from…and don't seem to mind that it belongs to someone else.
But where does all this cash really come from? There are only two choices…up or down…honest or corrupt…inflation or deflation. It is either borrowed…or it is counterfeited.
Wednesday, August 8, 2012
Bush and O-Banana's "economic stimulus package"
Plain speaking from DailyReckoning.com: