Friday, November 19, 2010

On $Borrowed$ Time

The real use and intention of the 2009 $878 billion stimulus:

As you probably know, the first $256 billion of the $878 billion Obama Stimulus, was used to fulfill a campaign promise to give 95% of the lower and middle class a cash gift from the government, whether they work or not, which came to $400 per person. It had no effect whatsoever on the economy, because it was much like the story of giving a person a fish or a fishing rod. It was non-productive, even less than a wash of depleting Private Sector credit access, then laundering the funds through the government, then returning the funds to the populous, on the pretext of fulfilling a campaign promise if Obama won – anywhere else a crime of vote buying.

Another $150 million went to various slush funds and grants to political cronies with only 7% to presumably shovel ready projects, which we now know were essentially wasted use of funds, having virtually no positive benefit to the promotion of sustainable productivity to the society, with any job creation discovered to cost anywhere from a few hundred thousand USD to over $1 million per job produced. Moreover, the government drained and continues to drain cash from the Private Sector and launders the money to pay non-productive make work jobs.

Stimulus Bills and The Governments Bait and Switch

Why hasn’t the balance in the stimulus been spent? The government’s bait and switch!

The $423 billion balance remains unspent, while government borrows month after month greater levels of stimulus to support political payoffs, such as broke union pensions, to provide loan guarantees to banks with money government had deprived from the Private Sector. Around $423 billion remains of the $878 billion stimulus not for any project, but set up in a “bait and switch” to cover an interest guarantee on the $13.5 Trillion national debt until the government has effected a “Regime change” to a “New Normal” which was projected to take 4 to 5 years from the inception of the planned collapse starting December 2007, at the end of which time credit will only be available through government owned and controlled financial institutions and Patronage.

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