Trickle Up Economics…Voodoo Economics…Part deux

http://www.cnn.com/2009/POLITICS/03/05/obama.pork/index.html

So, following last weeks column, let us continue to examine what the future holds.

We are now planning on spending around $2 trillion (or 1/12th of our GDP over 2 years) as government stimulus or other miscellaneous spending over the next two years. Some economists believe it will stimulate the economy, but most think that at most you will get a 1:1 spending ratio…which by definition is not stimulative.

The Obama administration is calculating that they will get a 1:3 bump stimulus for every dollar they spend.  That is ridiculous.  But let us take half that, 1:1.5, which is at least a plausible outcome.  That would mean the government would stimluate $2 trillion, and that would produce an extra $1 trillion in economic growth from other sectors.  Great.

Now, what happens when the government stimulus dries up?

Many economists are now wondering if the Obama stimulus plan will give a short term boost to the economy, but nothing more.  Since the ‘stimulus’ had less real stimulative spending than initially proposed, much of the spending (two-thirds, in fact) is spent after 2010.  So therefore, spending on government programs must decrease, because the President has now promised to decrease the budget deficit by 2013; both promises cannot be upheld.  So what results?  Possibly what economists are terming a ‘double-dip’ recession.

“The stuttering attempts to repair the banking and lending mechanisms so far by the new administration suggests that by late 2010, the specter of a second dip into recession will be looming large,” said Merrill Lynch economist Sheryl King.

So what has happened?  In essence, the government has been forced to take the place of the securitization market. Thus all those bad loans we hear about?  Now the taxpayer is basically funding them.  So what, you may ask?  Well, it does have repercussions.  The Fed’s own lending data shows that efforts to get money flowing again were having limited effect on the broader economy. Confidence has fallen so sharply that even those who can get credit are reluctant to borrow and spend.  But it is even worse than that.  Private industries that have been propped up by the government will some how have to be weaned off the government dole…because they now have no other sources of capital.

“Major industries have become dependent on federal assistance, and they will be followed by cities and states bearing mind-boggling requests,” investor Warren Buffett wrote in his annual letter to shareholders. “Weaning these entities from the public teat will be a political challenge. They won’t leave willingly.”

Additionally, we talk about deleveraging.  Do you realize that the U.S. Goverment is now the biggest leveraged entity in the world, by far?

Even Democrats are pushing back against the Obama plan.  At least 40 Congressman have stated their opposition to the bill.  And Senators Russ Feingold and Evan Bayh have both come out strongly that the budget must be much more restrained, especially regarding earmarks.  Senator Max Baucus has asked whether the Obama budget projections are realistic at all.  Many of these politicians supported Obama because they thought he was a moderate; it appears that Obama has pulled the classic bait-and-switch on them.  How much they will stand up to their own president remains to be seen.

Democrats standing up for fiscal responsibility?  Will wonders never cease.

Something 'd-o-o' economics...
Something 'd-o-o' economics...

One thought on “Trickle Up Economics…Voodoo Economics…Part deux

  • March 4, 2009 at 9:44 pm
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    Ron Paul Helps Glenn Beck Debunk FEMA Camps
    Published on 03-04-2009 Email To Friend Print Version

    Source: http://www.roguegovernment.com

    By – Lee Rogers

    A new operation appears to have been launched in the mass media mind control complex to make people believe that FEMA camps do not exist. Talking head stooge and former drug addict Glenn Beck who gets paid millions of dollars to lie to people on his radio show and on Fox News, actually began talking about FEMA camps recently. Beck promised that his research team would get to the bottom of what’s really going on with these FEMA camps. This is funny, because news of detention facilities being preserved and built in this country for large groups of people is 100% documented and is really nothing new. Of course, it is doubtful that Beck will actually reveal the truth about government detention facilities when his research team finishes their work. It appears as if the only reason why he’s mentioning FEMA camps is so that he can setup phony arguments as to why they don’t exist. Strangely enough, Ron Paul made an appearance on his program and actually told him that the camps don’t exist. Dr. Paul is right on many issues, but he is wrong about the FEMA camps. In fact, it is amazing to see how Dr. Paul has now been turned into a media darling as the corporate media’s old paradigms are being traded for new paradigms to keep people watching their fake news broadcasts. The fact that Dr. Paul won’t expose the phony terror war fraud, the lies about 9/11 and is now claiming that FEMA camps don’t exist is ridiculous. It is time to call a spade a spade.

    Beck Mentions FEMA Camps On Fox & Friends

    Beck Backs Off Of FEMA Camp Report w/ help From Ron Paul

    Let’s look at some of the evidence that there are detention facilities in place that could be used to hold large quantities of people for whatever reason the government deems to be necessary.

    First in the 1980s, it was reported by the Miami Herald, the Akron Beacon Journal and other publications on and after July 5th 1987 that Oliver North had assisted FEMA in drafting plans for civil defense. These plans included the suspension of the U.S. Constitution, the imposition of martial law, internment camps and turning control of state and local governments to military commanders and providing FEMA dictator like powers during catastrophic events including times of widespread political dissent. North himself was even asked about these reports during the Iran-Contra scandal by Congressman Jack Brooks but was stopped by the committee Chairman because it touched upon classified information.

    We have George W. Bush signing into law a bill that allocated money to preserve Japanese internment camps that were used during World War II.

    We have KBR the engineering arm of Halliburton being awarded a $385 million contract to build detention facilities under the guise that they would be used to house illegal aliens.

    There is a declassified U.S. Army document posted on the U.S. Army’s official web site outlining U.S. Army Regulation 210-35 which describes standard operating procedures on how to setup a Civilian Inmate Labor Program.

    The Associated Press ran a report describing how FEMA is looking for ways to transport large quantities of people via trains during an emergency, much like the Nazis did with Jews back during World War II.

    There is also ample anecdotal evidence of people who have reported facilities that appear to be built for the purpose of detaining large quantities of people around the country.

    There is also a new bill entitled HR 645 the National Emergency Centers Establishment Act that was proposed by Congressman Alcee Hastings (D-FL) which would authorize and legalize FEMA camp facilities on open and closed military reservations.

    It is impossible to dismiss all of this information and say that FEMA camps flat out don’t exist. There is too much anecdotal evidence and mainstream news to say that it is just a wild conspiracy theory. We know there are Japanese internment camps and we know that KBR was given a huge contract to build detention facilities that are not being used to house any illegal aliens at this point in time.

    With that said, we have to face the facts that there are detention facilities in existence today and that they are pushing to expand and legalize this insane FEMA camp program. It is pretty sad when there is literally nobody in Washington DC including Dr. Paul that is providing the full truth on anything. Even though Dr. Paul’s campaign for President began as a positive resistance movement it was clearly infiltrated and steered in the wrong direction to ensure its eventual defeat. The globalists plan to get rid of the Federal Reserve, so they don’t really mind the fact that Dr. Paul is over TV speaking out against it. They are just going to replace the Fed with the phony solution of a new central bank and a new debt based currency when the Federal Reserve Note currency collapses.

    The entire political process is a joke and there doesn’t appear to be any way to salvage it. The government is a criminal enterprise on every possible level and should be recognized as such. If Glenn Beck actually tells the truth about FEMA’s role in continuity of government operations coupled with what’s really happening with these camps, it will be an enormous surprise. It appears as if Dr. Paul’s appearance was setup for Beck to later debunk this FEMA camp information with his bought and paid for research team cronies. Even though it is possible Dr. Paul might not have full access to all of the information about government run detention centers, his stance on other issues such as the phony threat of Al-Qaeda and the false flag terror attacks of 9/11 raises a number of questions. Who out there is providing the full truth about anything in Washington DC? The answer is simple, and that is nobody.

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