Wednesday, February 18, 2009

Financial Madness

"Financial madness" is the only way to describe what is happening in Washington lately. I will not go into the details - anyone with a brain or the least bit of interest about what is going on in this country knows what the numbers are - trillions of dollars of "pork" spending leading to more future debt.

After the first half of the $720 billion "TARP" bill was distributed to banks, and later the government admitted they had "no idea how it was spent", it just confirmed my belief that our politicians are not just idiots, they are mostly incompetent managers who have no idea what economics are all about - the average small businessman in this country would make the average politician look like he failed ninth grade math. Since that first stimulus bill, additional trillions of dollars have been spent and when Obama makes his speeches about all this spending the crowds cheer. Financial madness is the only way to describe it and I would guess a large portion of the people that voted for Obama have no idea what the consequences of these spending bills are...in fact many look at it as "free" entitlements for themselves.

Since the country had a deficit to begin with, these trillions of dollars have to be borrowed. But that borrowing will soon come to an end as the rest of the world begins to worry about the USA's ability to pay it back. At that time our government will have only a few choices - raise taxes on everyone, or print money and let inflation reduce the debt. Both are losing propositions for main street Americans.

I am convinced that this is a power grab unprecedented in the history of this country, aimed at laying the foundation for a socialist government with hopes of securing power for the Democrats for years to come. These bailouts reward homeowners that made poor choices, they reward auto makers and banks that have mismanaged their companies, and they re-establish a broad welfare system in this country. Think about it - most of these programs support people that have "failed' and ask achievers to pay for that failure. It's just a way to redistribute the wealth of this country from the achievers to the non-achievers...classic socialism. Margaret Thatcher, former Conservative Prime Minister of Britain once made a very prolific quote:

"The problem with socialism is that eventually you run out of other people's money"

Unfortunately the Democrats have almost total control in Washington and Obama, the "pied piper of socialism" is leading his throngs like lemmings over a cliff. And I think he knows exactly what he is doing.

4 comments:

Anonymous said...

Chuck, I do hope you are not completely right in your statements - but I am afraid you are.
Bjørn

Anonymous said...

Chuck,

As usual, you're right on the money. Like many other Americans, I fear that it's going to get a lot worse until people finally wake-up to what's really happening and what the democrats have done. I also find it interesting to note that everytime I now go into Wal-Mart to by ammo for target shooting the shelves are picked clean. Obama the next Lincolin...I think not.

JB

Michael Strickland said...

"What the DEMOCRATS have done"? C'mon JB, share the love. It's the politicians on BOTH sides who are to blame for putting us where we are.

Anonymous said...

Mike,

Oh I'm not saying that the GOP is without blame as they too have their fair share of very poor managers. However, it is without a doubt that the democrats (Clinton Administration) are to blame for putting this world-wide economic downturn in motion by forcing the banks and other lenders to lower their standards to unqualified borrowers. Now, all of us, including our children and grandchildren, will be forced to pay for their mistake. Total nonsense to say the least.