I can't seem to leave some news stories alone...
And can you blame other countries for being angry?
Think about it...
The article states, “...to buy $600 billion in long-term bonds with new money...” [emphasis mine] The term “new money” is a nice way of saying that the $600-billion does not really exist. We're just going to pretend that it does and print the paper to prove it.
There are two direct impacts from such an action...
(1) The dollar is devalued. That is, the worth of all dollars falls when un-backed money is printed. Look at it this way...let's say you have $10 in paper money that is backed by ten pounds some comodity. Bull shit will do nicely. Simple math will tell you that bull shit is worth $1 a pound. Now, you print another $5 in paper money, but the amount of bull shit remains the same. Suddenly, a pound of bull shit costs $1.50. You have more money, but the money is worth less. Or worthless.
(2) Inflation kicks into high gear. The events from #1 above begin to snowball. As the ripples of devalued currency spread through the economy, the prices of every item you can imagine go up, but the value of the currency falls. Before you know it, a loaf of bread is $30.
Now expand your mind...
No matter how much the Ruling Class in Washington dislikes the idea and has tried to change it, the US economy is what drives the rest of the world. If our economy collapses, so does theirs. Even the fellow socialists and Marxists in other countries can see what's coming here...
Between run-away spending, deficits that are approaching the GDP (Gross Domestic Product), and devaluing the dollar to put lipstick on a pig, the US economy is failing.
Personally, I think we can still stop this. To be honest, there are a good number of economists who disagree with me.
The theory of these people who think we can no longer stop this train have the opinion that the only thing we can do is let the whole thing fall apart, and then pick up the pieces and start over again. The Ruling Class in Washington loves this idea because the failure can be blamed on capitalism and free enterprise, and they can then start tearing pages from The Communist Manefesto and passing them into law. I won't bore you with the details, but this has been tried at least seventy times in the past in different places. It never worked. I have no clue what makes anyone think it will work now.
As for me, it's pretty simple to avoid the crash...
First, we stop the bleeding. Stop spending more money than we take in. Trim the fat and get things under control. To put it bluntly, the radical spending was by design and intentional as a way to set up the exact situation we are in right now. Folks, this is a planned event.
Second, we kill about 99% of the ridiculous regulations, taxes, and fees that business has to deal with. This will stimulate growth, sales, employment, and incomes for business and individuals alike. Government cannot create jobs that last. Only private, free enterprise in a capitalistic system can create long-term jobs. Read your history.
Third, we slash taxes across the board to every person. None of this nonsense of some groups getting a bigger (or smaller) cut than others. Everyone gets a 50% reduction in taxes. On the same note, fees need to be slashed by similar amounts. The result is that people keep more of the money they make. The end result of the end result is that people spend more money and live better. Sheesh...that sounds like Wal-Mart!
Fourth, we return to the basics of federalism. Again, do some reading, this time of the Constitution. There are just exactly two things that the federal government is allowed to do: (1) Control Interstate Commerce, and (2) Control Foreign Affairs. Everything else is under the control of the states. In fact, the Constitution states that any function not explicitly granted to the federal government belongs to the states. Just to pick one example, look at gay marriage...there is nothing in the Constitution about the definition of marriage. Not one word. Gay marriage, no matter if allowed or not, has nothing to do with interstate commerce or foreign affairs. Therefore, BY DEFINITION, the federal government is not allowed to define marriage. End of discussion.
If we do these things, we can stop the coming—as the Whitehouse called it—decline of America.
The question is, do we have the balls to do it?
The gains by Republicans and conservatives in general this past week are a start. There is a good deal of new blood in Washington now, and I have high hopes.
Will the new structure in congress stand up to the administration? Will they say “no” to more spending and bigger government? Will they introduce bills to overturn things already in play? Will the House send bills to the Senate, forcing them to show their true colors? Will both houses send bills to the Whitehouse knowing they will be vetoed, forcing President Obama to show his disregard for the Constitution and the will of the people?
Only time will tell.
On the other hand, in 2012, if the new blood doesn't deliver on their promises, and the remaining old blood is still running business as usual, the bloodbath for both parties will make The Little Bighorn look like a game of badmitten.
Melodee Aaron, Erotica Romance Author
Melodee's Books at BookStrand