October 21, 2009
This is basically what Christina Romer, chair of the Council of Economic Advisers, said yesterday. If not for “decisive action to shore up financial institutions and stimulate the economy” we would be in the Second Great Depression.
|Obama’s economic team consists mostly of Goldman Sachs and Federal Reserve cronies. Christina Romer is seated second from the left.|
This is more “green shoots” pie-in-the-sky propaganda. The federal government did not “stimulate” the economy. It hocked the future of our children and grand children. It piled trillions of dollars of debt on future generations.
It didn’t “shore up” financial institutions. It gave trillions away to the bankers who used the money to buy smaller institutions and lavish their employees with fantastic bonuses.
Recall the snake oil salesmen telling us forking over trillions to the bankers would result in the banks giving loans to Main Street again. It was reported on October 20 that the banksters cut small business lending by $8 billion.
As trends researcher Gerald Celente notes, the bankster bailout is the “Mother of All Bubbles, and when it explodes… it will signal the end to the boom/bust cycle that has characterized economic activity throughout the developed world.”
The American Recovery and Reinvestment Act of 2009 was sold like snake oil back in February. Administration economists cited Keynesian models that predicted that the $787 billion stimulus package would increase GDP by enough to create 3.6 million jobs. The Keynesians believe that if the government spends trillions of dollars borrowed from bankers who create it out of thin air this will expand the GDP through some kind of voodoo.
“I’ll gladly pay you Tuesday for a hamburger today,” promised J. Wellington Wimpy, the cartoon friend of Popeye. It’s the same with the Keynesians. They want a stimulus hamburger today and promise to pay it for it down the road. If you consider the interest the bankers will tack on, it is going to be an awful expensive hamburger. Future generations will have to pay off the “stimulus” loan and its interest through higher taxation.
Of course, considering the way things are going, there may not be much left for future generations. It is entirely possible they will be in the same situation as the serfs of medieval Europe – or worse.
It is absurd to think the government can create jobs through debt spending. Most confiscated tax dollars do not go toward job creation. A large chunk of the money is spent to pay off loans made by the bankers to the government in the past — money spent on highly profitable wars engineered by the bankers and spent on dead-end social programs that ultimately wreck society, corporate welfare, and handing out billions every year to foreign countries that consider us their personal piggy bank.
Most of the money is chewed up by the Pentagon, squandered on a global war against manufactured enemies, and pumped into Medicare and Medicaid. It is also dumped into the Great Ponzi Scheme known as Social Security. It’s a Ponzi scheme because most people paying into it now will not see a dime.
In fiscal year 2009, the government will spend $383 billion on interest payments to the holders of the national debt, that is to say the bankers. The interest payment was $153 billion in 2008. You can see where this is going.
Meanwhile, the Obama administration tells us everything is coming up roses. Romer said “the stimulus program has boosted the gross domestic product by roughly 2 to 3 percentage points in both the second and third quarters. Also, it created or saved about 1 million jobs.”
Keep in mind the GDP figure was pulled out of a hat by government bean counters. Other economists have figured the increase in government spending would add less than a percentage point. Robert Barro of Harvard predicted the impact would not be significantly different from zero.
In fact, the Obama stimulus has so far created about 30,000 jobs, not a million. If you break that down, it turns out to be around $533,000 for each job. That’s more than five times the projection of the president’s own Council of Economic Advisers — headed up by Romer — which estimated in May that every $92,136 in government spending would create one job for one year.
Not that it matters. According to research done by ProPublica, we may never know if the massive transfer of wealth from future generations created jobs.
If Obama and the Democrats pass a cap and trade bill — and it looks like they will — the government will be in the business of destroying jobs, not creating them at the tune of a half million bucks per job.
The Heritage Foundation’s Center for Data Analysis used an econometric model of the U.S. economy to measure the projected impact of the Waxman-Markey cap and trade bill and found that by 2035, it would destroy 844,000 jobs on average, with peak years seeing unemployment rise by over 1,900,000 jobs. It would also jack up electricity rates 90 percent after adjusting for inflation and raise gasoline prices by 55 percent.
Cap and trade will reduce the GDP by $7.4 trillion and increase inflation-adjusted federal debt by 29 percent, or $33,400 additional federal debt per person, again after adjusting for inflation.
Do you get the funny feeling this is all about an astronomical debt owed to bankers and the engineered destruction of what was once the most productive nation on earth?
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