Spending Our Way Out Of Indebtedness?!
The theory: If I spend more money I don't have, my life will get better.
Now we have two Obamas instead of just one....
I don't know about you, but the idea of the unbalanced Obama budget which plans to put America further in debt by another trillion dollars or more (not less) just got escalated by Federal Reserve Chairman Bernanke! He maintains that the Federal Reserve, by his orders, will buy up mortgages by spending $40,000,000,000.00 every month for as far as Bernanke can see into the future and that will create more jobs! Jobs for government employees who hand out the money?
My 2nd Grade arithmetic tells me that will mean the US Treasury will have to add almost another half a trillion dollars to the National Debt each year for as far as Bernanke can see! (We can wish he was as shortsighted as this latest "policy"!)
Where have I heard those "tax and spend" lyrics before?
Don't for one moment think that the American Government can overspend by another trillion and one half dollars without the tax part of "tax and spend" hitting our wallets and family budgets in the future, just as the supposedly "free money" from our government is supposed to aid the states in handling Medicaid costs. There is no such thing as "free money!"
There is no such thing as "free money!" (It deserved saying again.) Has anyone given you some lately?
President Obama is campaigning on the premise that the last President Bush left Obama with an impossible hand to play "in just four years." Now President Obama and Chairman Bernanke are leaving America with an increasingly hard hand to play in the next four years.
That's not going "Forward!" That's doing the very thing President Obama is himself trying to blame his predecessor for doing!
I guess the Obama/Bernanke Theory is political. It goes like this: if it works, it's great, if not, then let's see future presidents dig us out of an even deeper hole; and make us look good!
No Sale! "Keeping interest rates low" doesn't seem to apply to the credit cards so many Americans are living on today. "Buying up mortgages" doesn't mean that homeowners no longer owe those mortgages. And having the Department of the Treasury print more money isn't going to mean that "trickle down economics" is suddenly going to work to create new jobs.
I recently heard of a proposal to demand an audit of the Federal Reserve.
"Bare Bones Economics" suggests that we find out where the skeletons are buried...before they are our own.
Copyright 2012 Demas W. Jasper All rights reserved.
What do YOU think?
Was the announcement of more Federal Reserve spending of $20 Billion a month
Read it for yourself....
- Chairman Bernanke says Fed is ready to act - Economy Watch
Federal Reserve Chairman Ben Bernanke said Thursday the Fed was poised to act if the U.S. economy stalls. But he offered no new insight about what, if anything, the central bank could do in the face of sluggish household spending, slowing job growth,