Topic: Monetary Policy
All In CNN reports today that the grand total of all the bailout proposals, new money created by the Fed, and the new Obama plan add up to a grand total of $8 trillion dollars.by Walt Thiessen
(libertarian)
Tuesday, January 6, 2009
President-elect Barrack Obama's latest proposals of around $800 billion in tax cuts and stimuluses bring us to a grand total of $8 trillion in total bailout dollars by all banking and governmental parties concerned, according to an article today released by CNN.
Numerous writers on this site including myself have repeatedly pointed out that this is quite possibly the end game of the biggest ponzi scheme of all time, a scheme more than 1,000 times worse than the Madoff scam. Ever since this site was launched a year and a half ago, we've pounded out the message that stimulating the economy is dangerous, counter-productive and will come back to haunt us. So, the brilliant powers that be conclude that now it's time to go all-in using the same, failed strategy that got us into this mess in the first place.
For those who don't play poker, "all-in" means betting everything you have on one hand. Ours is roughly a $14 trillion economy, so $8 trillion is more than half our entire economy. Skilled poker players know that if you bet more than half your stake on a single hand, it's just about the same thing as betting everything you have. The reason is that it would be colossally foolish to bet more than half your stack without being willing to bet the rest of it on the same hand.
I'm sure they think of it as bold and daring, but it's actually pretty stupid when all you're holding in your hand is a busted flush, because the odds are so overwhelmingly against you. Further, we can be 100% sure that the other guy (the rest of the world that invests in America) is going to call the bet. In fact, they already have.
It's bad enough that the financial wizards are betting with our entire economy on the next turn of the card. It's even worse when you realize that they're really bad poker players.
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The views expressed in this
article are those of Walt Thiessen only and do not represent
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Posted By: Jahfre Fire Eater
Date: 2009-01-06 06:59:16
Hi Walt,
800 Billion, 8 trillion, 800 trillion (your typo), with numbers like this it will add up to real money in no time. :-)
Most people dont get it. They look around and see prices coming down, gas getting cheaper and interest rates falling. If they are still employed they are starting to feel hopeful. They do not see the impending doom in the consequences of the actions of our frightful leaders. Too bad, so sad...for them. It's not like they haven't been warned. They are just too comfortable to take the warning seriously.
Posted By: Billy Joe Allen
Date: 2009-01-09 00:26:45
What's the worry? We've thrown out the Weimar Republicans and elected the Zimbabwe Democrats. We will all be millionaires once those printing presses kick into high gear! YEEhaw!!
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