For more than three weeks president Obama and the Congress have been trying to come up with a way to jumpstart the economy and create jobs; well, on the cusp of what appears to be the massive stimulus plan becoming ‘Law,’ it seems that once again old habits die hard in the nation’s capitol. In spite of the talk of bi-partisan support and President Obama visiting Republican Legislators in both Houses of Congress, there have been recriminations, cries of partisanship and the usual rhetoric espoused by both political parties such that the honeymoon may be over a lot sooner than expected.
The “New Deal” that is supposed to create jobs, free up tight credit from banks and financial lending institutions, and stop the hemohhraging from mortgage foreclosures appears to be in ‘cardiac arrest;’ if not for all intents and purposes, DOA. According to the “Associated Press,” which featured a version of the ‘Plan’ in the Tacoma News Tribune, Section A5, February 11, 2009, of the 23 different provisions contained in this economic package, only about 3 or 4 have anything to do with creating jobs and at least 1 is geared toward helping banks with their losses.
Now, after reviewing all the goodies of which the Senate version will cost an estimated 835.3B or so, and the House version is roughly 791.5B, the daunting question is how will all of this be paid? ‘Bush 41’ famously said, “Read My lips, No New Taxes,” which he later raised, and President Obama has constantly assured the American people that he will be able to pay for this Economic Stimulus Plan; all without raising taxes. Of course, one must cautiously listen to any politician who says they won't raise taxes because it usually means "payroll taxes" because taxes can still be raised on gasoline, alcoholic beverages, telephone and cable services, etc.
This leaves very few other viable options other than authorizing the US Treasury department to print more money, thereby devaluing the dollar even more. Also, the Federal Reserve will sell government securities in the form of Treasury Bills, Notes, and Bonds to foreign nations and thereby mortgage our future posterity, way of life and National Security to countries who may not have our best interests at heart. Indeed, what might appear to be a ‘gift’ at our gate just might end up looking like the “Trojan Horse” which Ulysses and his fellow Greeks left outside the walls of the city of Troy (modern ‘Anatolia’ in Turkey); and history tells us how badly that one turned out.
Robert Randle
776 Commerce St. #B-11
Tacoma, WA 98402
February 12, 2009
pbks@hotmail.com
