Yesterday Federal Reserve Chairman Ben Bernanke warned, during his testimony before the House Budget Committee, that “unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth.” So, the $1.2T budget passed by Congress and signed by President Obama is not fiscally responsible? Imagine that. The notion that we can spend our way out of a recession is foolhardy.
The Washington Post reported that “Bernanke’s testimony to Congress reflected growing concern among economists and investors that the nation’s long-term fiscal imbalances could stand in the way of economic recovery by driving up the interest rates that the government, businesses and consumers pay to borrow money.” The age of 20% mortgage rate is near. Currently the Federal Reserve is printing money to pay off the debt to China and other countries lending America money. The continuation of this will lead to galloping inflation and send America into similar dire straits that Germany saw after WWI.
Have the scholars that run our country not learned anything from history? Our population is aging and the baby boomer generation is nearing the point of entitlement. Congress does need to take drastic measures, unfortunately too many of them feel it is bigger government. Government has bankrupt Social Security, Medicare, Medicade, and now the Highway fund. It is time to give Government back to the people and return to the core beliefs of our Founding Fathers.
Because if we do not, there will come a time within the Obama administration that we see tax brackets of Jimmy Carter returning. That will only hurt our economy and finally bankrupt America.
Showing posts with label Federal Reserve Bank. Show all posts
Showing posts with label Federal Reserve Bank. Show all posts
Thursday, June 4, 2009
Monday, June 1, 2009
Who's Next to be Nationalized
Today President Obama announced that GM will be entering into bankruptcy. 25,000 plus jobs will be cut and numerous plants will either be closed or moth-balled. The Government will own 60% of GM, not much different then the bank plan, while only 10% will be owned by the bondholders that staked GM.
President Obama says he does not want "run GM" but it is necessary that Government intervene. Nothing that I ever read in books about Capitalism or Civic duties of government included national government ownership; temporary or not. Why hasn't President Obama presented a plan to exactly what the Government will do to ensure GM's socialistic regime is short lived?
The lack of the plan indicates that President Obama is looking to socialize all aspects of our economy. Banks were the first and now Automotive. With Chrysler and GM under the thumb of the Federal Government, where does it leave Ford? How can the American Government not play favorites and balance their competing interests? With the taxpayer on the hook for the success of Chrysler and GM, how does President Obama plan to devise incentives to repay to taxpayer while not violating anti-trust laws. The simple answer is he cannot.
So the next move will be to force Ford into the same railroad job and spin it to the American public that its in the best interest of the American economy. A lot of rhetoric coming from President Obama eerily parallels speeches given by Adolf Hitler on the importance of rebuilding Germany. Post WWI left Germany in a deep recession with galloping inflation. Soon we will be experiencing the same inflation as the Federal Reserve Bank prints more and more money to pay off the Trillion of dollar debt that President Obama and Democrats in Congress has saddled us with. All in the name of "It's best for our Economy".
The Free Market and Capitalism are phoenix's. If one company fails, no matter the size, another will spring up to pick up the slack. Now where the Government can assist the Economic models that has given many Americans their wealth is to ensure, through limited regulation, that greed, deception, and corruption is kept in check. The role of government in a free society is not to own business or commerce; ownership of business is only seen in Socialistic societies where liberties and freedoms are restricted.
If Americans do not wake up soon and vote in a more fiscally responsible Congress our free society will be no longer.
President Obama says he does not want "run GM" but it is necessary that Government intervene. Nothing that I ever read in books about Capitalism or Civic duties of government included national government ownership; temporary or not. Why hasn't President Obama presented a plan to exactly what the Government will do to ensure GM's socialistic regime is short lived?
The lack of the plan indicates that President Obama is looking to socialize all aspects of our economy. Banks were the first and now Automotive. With Chrysler and GM under the thumb of the Federal Government, where does it leave Ford? How can the American Government not play favorites and balance their competing interests? With the taxpayer on the hook for the success of Chrysler and GM, how does President Obama plan to devise incentives to repay to taxpayer while not violating anti-trust laws. The simple answer is he cannot.
So the next move will be to force Ford into the same railroad job and spin it to the American public that its in the best interest of the American economy. A lot of rhetoric coming from President Obama eerily parallels speeches given by Adolf Hitler on the importance of rebuilding Germany. Post WWI left Germany in a deep recession with galloping inflation. Soon we will be experiencing the same inflation as the Federal Reserve Bank prints more and more money to pay off the Trillion of dollar debt that President Obama and Democrats in Congress has saddled us with. All in the name of "It's best for our Economy".
The Free Market and Capitalism are phoenix's. If one company fails, no matter the size, another will spring up to pick up the slack. Now where the Government can assist the Economic models that has given many Americans their wealth is to ensure, through limited regulation, that greed, deception, and corruption is kept in check. The role of government in a free society is not to own business or commerce; ownership of business is only seen in Socialistic societies where liberties and freedoms are restricted.
If Americans do not wake up soon and vote in a more fiscally responsible Congress our free society will be no longer.
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