Recently in the news there was a lot of furor over AIG giving out millions in bonuses to some of it's top executives. I don't want to get into the argument of whether that was correct or not, I'm sure there are many opinions on both sides.What I want to point out today is something that many of us missed. While the left hand was waving for our attention the right hand was doing something else that the dolts in the media didn't see.
While the spectacle of Chris Dodd stuttering uncontrollably as he tried to explain his way out of allowing the AIG bonuses without throwing the Obama administration and Timothy Geihtner under the bus was amusing. It served to dupe the one-sided media types.
What didn't get reported this weekend and last week was the fact that the Feds decided to throw and additional $1 Trillion dollars at the market and made an additional $6 billion dollar commitment to keep buying MBS (mortgage backed securities).
Sounds good right? What's so bad about that. Well I'll tell you. They don't have the money ...or should I say WE don't have the money to do this with. So the printing presses were pushed into full gear and just to top the bad news off with more bad news... ready...
We used the freshly printed money to buy our own debt. Now in the real world this is essentially like 'kiting' a check. You know, you go down to the bank and you deposit a check from your own account back into that account.
You don't really have an extra grand in the bank but for a brief while the books show that you do. The government just did that. I dare you to try it! They would nail you for fraud and throw you in the slammer for sure!
But the hypocrisy of all this nonsense is not the worst part. The worst part of all this is that we know, everyone with any common since and historical economic knowledge knows that printing money devalues the currency and leads to inflation.
Our only saving grace is that monetary policy with regard to printing new dollars has been relatively tight over the years and we are in a recessionary time, so maybe, just maybe we make it without getting dinged to hard this time.
It's scary out there. While things should start to improve, we won't see real improvement and wealth generation until the bureaucrats and blow-hards in Washington quit with their Tax & Spend ways.
America, this is our wake up call! We can't spend our way out of the mess this time. We need to save and our government needs to save along with us. It's time to STOP spending money we don't have.
That's my opinion, I welcome yours.
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Where has the Mike i have known for years gone? I am looking for the real Mike the one who i have sat around many a dinner table with. All of our friends around some smart, some brilliant, some just there for the alchol. ( As our friends read this you know where you fall in that equation)The conservative unbeatable Mike Gross. The one who you could never beat in strategy games because he would con his friends into agreeing to these strange conservative alliances where only you would benifit. You are slowly sliding to the dark side my friend. PRINTING MONEY MIGHT NOT DING US TO BAD THIS TIME! I read that line and i thought surely Mike walked away from the computer and someone else slipped that in. I also disagree with you on savings while i believe the goverment should be saving and quit spending money they do not have so they steal it from us. I believe the country as a whole needs to start spending a little. I do believe that every family should have proper saving goals that allow for the future, However what we are seeing now is people squirreling away everything extra in the fear we are going to be caughtin some Spielburgesch docudrama where buildings are exploding and aliens are taking over the world. (By the way i am not sure if Spielburgesch is a real word)If the general public does not start to spend a little money we will head down this road untill we collapse. I am not talking about new cars and fancy jewelry i just mean by the large box of captain crunch at the grocery store enjoy life thats all i am saying. Mike i look forward to you shaking this funk that is obviously confused and clouded your vision off. There are so few of us conservatives left evidently look what we allowed to happen in the last few elections. (By the way are there any conservative officials with a spine left) In the end i only have to things to say will the real Mike Gross stand up and why haven't you wrote an article about the fact that Obama is treating our enemies as if they were the tooth fairy and the cookie monster. Ignoring these people or sitting down for talks with people that have no morality is not the answer. If you show weakness you invite aggression.
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