US President Barack Obama has welcomed Congress’s approval of his $787bn (£548bn) economic stimulus package.
He described it as a “historic step” and “major milestone on our road to recovery”, and is expected to sign the bill into law early next week.
The Senate approved the measure with just three Republican votes, hours after the House of Representatives backed it without Republican support.
Mr Obama has said the plan will “save or create more than 3.5 million jobs”.
Republicans argue the tax cuts are insufficient, and that the economy will be saddled with debt for years to come.
Our great-grandchildren may well curse our memory. We have left them with a debt they did not select for themselves, and we did it for our own comfort. Having buried ourselves in capricious debt, we incurred even more, on their backs, so that we might be comfortable as we grow hold.
God may well judge our generation.
Sorry. . . . “grow hold” should read “grow old. . .”
Monetization of a debt this large cannot help but lead to hyper-inflation. We will initially drift down with mild deflation, then, as confidence is regained, the inflationary dam will burst and an overwhelming tidal wave of inflation will come crashing down on our economy…destroying everything in its path.
I think that this “crisis” will lead to a collapse of globalization (in the near term) and America will find that only having 20% of the manufacturing base it had in the 1970’s isn’t a good thing. As Americans try to buy foreign produced goods with devalued currency (seen as ever higher rising prices), we will realize too late that we need to be able to MAKE things right here in America. Why too late? Because we will be in a situation where no one will lend except at extremely high interest because any debts will be repayed with devalued (inflated) dollars…causing a massive credit crunch. No credit, no manufacturing startups (or at least very few).
We will learn to patch, repair, and save (recycle) in earnest. Wearing patched clothes and home made clothes will be the norm. I read that cardboard can be used for temporary patches for shoes. If you want to read about the future, read the history of the Great Depression. When my grandparents passed away, we found bags of bags, balls of rubber bands, a well stocked pantry with food enough for at least a year, blankets and linens and towls enough for a small motel, and clothes. They had a garden and canned food regularly. The habit never left them.
Learn to hunt and fish if you don’t know how.
I think (and now hope) that the currency will fail. If the currency fails, the Fed will be out of business. All debts will be “paid” off. The congress will have to use the Mint to produce real dollars rather than fiat Federal Reserve Notes. I read yesterday that China is buying 350 tons of gold.
Not a bad idea.
As Senator John Kerry said when he was running for President:
[blockquote] Secretary of State Colin Powell told this president the Pottery Barn rule: If you break it, you fix it. Now, if you break it, you made a mistake. It’s the wrong thing to do. But you own it.[/blockquote]
Mr. Obama, you now own it.
Getting ready for the “stagflation” like the late 1970s/early 1980s while hoping to retire doesn’t look like fun.
When I get a new job, no matter how many problems come with the work environment, I’m staying put. A job is better than NO job.
Oh, by the way, there is very little stimulus in the bill. A lot of spending including oversees monies and good ol’ fashioned home town pork, but little true stimulus.
Milestone? How about MILLstone…
wrb:
🙂
JE
“Mr Obama has said the plan will “save or create more than 3.5 million jobs”.”
& just how will anybody know that? & is a job ‘saved’ or ‘created’ @ $225,000 each ($787bn divided by 3.5m) good value for the taxpayer?