We can learn simple truths from the way the mob or Mafia view things.
That is probably why Las Vegas Mayor Oscar Goodman proposed a $60 million mob museum be included in the Obama stimulus plan.
School economics is one thing. Street economics is sometimes the same and sometimes different.
The New President and the Congress are now talking about the biggest “rescue” or “stimulus” or “bailout” of the economy in the history of the world. The deal is financed by “government spending” which is really borrowed money which is debt.
Or we just print more money which means inflation and the money is worthless.
When America borrows, who pays? First, I guess, and correct me if I’m wrong, China lends the money to the U.S.
China already “owns” as of October, 652.9 billion dollars in US Treasury bonds.
Now President-elect Barack Obama has proposed a stimulus bill expected to total at least 775 billion dollars that he has acknowledged would drive the US deficit significantly higher — and require financing from overseas.
Actually, as David Gregory said on NBC’s “Meet the Press” on Sunday, the total “bailout” is going to be $2 Trillion from late 2008 until the end of 2009.
And China has already signaled that is may slow the rate of funding U.S. debt, stimulus, rescue and other shenanigans by any name.
Why? China wants to solve its own economic problems first and China is starting to doubt that American can repay.
Why? To repay the debt, the average U.S. worker, at some time in the future, will have to earn a lot more and pay a lot more in taxes. The tax debt per family will exceed $20,000.
But what will Americans DO to earn more? Make cars at GM? Hardly. About 70% of our American economy is consumer spending. So we tax store clerks more?
So, to put this in the most basic terms: the U.S. is borrowing huge amounts of dough from the mafia. There is some doubt that it can be paid back. If it doesn’t get paid back the pay-back price will increase. Finally, if it doesn’t get paid back, “they own you” or “they break your legs.”
So China will own the U.S.
Or break our legs. Or balls.
Someday, maybe, America will have to make a concession. Give up some oil? A chunk of land? Taiwan? Guam? Something we really think is important….
Read the rest:
Obama, Congress, Stimulus Mix Overlooks: China’s Slowing US Bond Appetite
U.S. “Bailout” Results Uncertain; But China Says Its Stimulus is Working Already
Can The U.S. Pay Back This Huge Debt?
Europeans Deplore Huge Debts, Spending to Solve Current Economic Crisis
Obama Offered Republicans ‘Input’ On Stimulus: But “Oh My God” Is Response To Pelosi Bill
Obama’s Stimulus: Routine Repairs; Lacks “Power to stir men’s souls”
Don’t forget the “toxic bank assets.”
Addressing these assets was the original purpose of the Troubled Asset Relief Program, the formal name of the $700 billion bailout plan the Bush administration unveiled as the credit crunch spun out of control. It was later abandoned in favor of taking equity stakes in banks, which was seen as a more direct and rapid way to help.
But as the economy worsens and banks continue to rack up multi-billion dollar losses, the incoming Obama administration will face tough choices in deciding what to do with the $350 billion remaining in the bailout plan. There are many who want a piece of the pie, and there may not be enough money to go around.
One critic of the stimulus is Rep. Jerry Lewis from California.
“We have serious concerns about its size, scope, and astronomical cost,” said Representative Jerry Lewis, the top Republican on the Appropriations Committee. “This legislation appears to blanket government programs in spending with little thought toward real economic results, job creation, or respect for the taxpayer.”
The spending plan would add to the $1.2 trillion deficit the government was already projected to run this year.