That aside. You can not be fooled by this bill. It may work in the short term. I don't think it has much of a chance but may be. It will in the end require another stimulus bill. The US government becomes a massive consumer. When it stops spending the economy tanks again. Even if it doesn't completely tank and recovers some we have hyper inflation pressure that can't be avoided.
This bill may look like its working it will cause massively more harm than good. I not even including the massive spending on welfare programs that are now in the law. They would have to be repealed after the recovery. Is that Going to happen No.
The Real Stimulus Burden
"Far more plausibly, Democrats will take the stimulus increases and make them part of a new, higher baseline for future spending growth. Anyone who proposes to cut from that amount will be denounced as "heartless" and Draconian."
"We aren't deficit scolds, but these levels are uncharted territory, especially if any economic recovery is weak because the spending doesn't stimulate. The new spending means new federal debt in the trillions of dollars over the next few years, which will test the limits of America's credit-worthiness. To the extent that taxes rise to pay for it all, the U.S. will become less desirable as a destination for the world's capital. Perhaps the Federal Reserve will try to inflate away this growing debt, but the world's bond vigilantes will get a vote on that."Deficit spending as a percentage of what we produce(GDP)? If its Over 100% we will literally spend more than the entire country makes.
Obama Makes History... Breaks US Debt Record In Just 30 Days
We will be at more than twice the debt/GDP level than at any time in our history.
Hyper Inflation - so much money on the system that the money it self is worth much much less. $10, $20, $50, $100, $1000 milk?
It may look good for a while but DO NOT BE FOOLED.
No comments:
Post a Comment