Friday, March 16, 2007

Breaking the Bank

It was about fifteen months ago when I asked Senator Shelby as to when the federal government spends the borrowed money (budget deficits), where does all that money end up at? Well there are many ways you can word this question, many ways to define the deficits, and there are many stories the government tells us about the deficit spending, but the end results are always the same and it seems that the money also ends up in the same pockets, sooner or later.

Our government is more broke than any other government on the face of the earth, in as much as the number of dollars owed and promised to be paid back at some time in the future. There is no money in the social security fund, to pay back the working poor and persons from so called lower middle class, who slaved for years for meager wages for a promise that they will be taken care of in their old age. That money has already been spent many times over, our federal government is the hook for the under funded retirement funds, the FHA loans, the VA loans, the Medicare and the monies owed to the foreign governments and banks for the merchandise bought and sold in retail stores, what we call the trade deficit or current accounts deficit.

As our MBA president brags about our booming economy, if he were to be honest he would be crying real tears for how broke we are, and that the house of cards that the Republicans (with help of sell out Democrats) have built could come down any time at the whim of a foreign or domestic banker or currency trader or the Chinese or Japanese Government.

Since Mr. senile, the President Reagan, declared that the deficits do not matter, that the tax cuts increase the government income, that the global economy is good for every body, that the workers are fools to ask for a decent living wage and can be replaced by slaves in other countries, we have been on a non-stop down hill slide, and like the children of the story of the Pied Piper, we have been a nation glee fully running along to our own national demise.

Our leaders are not giants nor geniuses, they are not gods nor angels, and as such Reagan was an old man with a sense of humor (to make up for his total lack of real knowledge), till he passed into the onset of Alzheimer’s while still in office. If we were to admit the truth that he was not an economic genius who parroted what he was told to believe with a smile on his face. If you believe that cutting taxes actually increases the revenue to the governments coffers then to you Saudi Arabia is nothing but a thousand mile wide beach. What we forget is that under Reagan the government accumulated a trillion dollar deficit. That under Reagan the bank reserve requirements were trimmed, that under Reagan we started to “borrow” money from the social security deposits, without telling the public that it was also a part of deficit spending, that the new banking regulations under Reagan allowed banks to create money on demand, and as such money existed if you wanted it, no need for anyone to save any longer. That under Reagan the stock market truly became a gambling joint.

SO WHO SHOULD PAY FOR THE SUB STANDARD MORTGAGE LOAN LOSSES? There have already been calls for the federal governments to step in bail out the mortgage and banking industry. Does anyone remember we have been here before? Does any one remember the Silverado Savings and Neal Bush, or John McCain and the Keating Five? Michael Milkin anyone? Didn’t the federal government just bail out the fools already? And who gets stuck with the bill? Not the rich mind you because they can not pay taxes , they need tax cuts right?

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